OIL & GAS

Coalbed methane

Dry Horseshoe Canyon coals once supplied 8 % of Alberta's gas; low AECO has parked the play.

Roughly 9,000 CBM wells, mostly multi-seam Horseshoe Canyon completions between Calgary and Edmonton, peaked at 0.67 Bcf/d in 2014. Volumes fell 7.7 % in 2024 and the AER no longer reports CBM separately. The resource is large (10–12 Tcf recoverable in the Horseshoe Canyon alone) but needs AECO well above C$3/GJ or CO2-enhanced recovery to attract capital.

POTENTIAL & KNOWN RESERVES IN ALBERTA

10–12 Tcf recoverable Horseshoe Canyon CBM (CERI 2006 estimate); ~0.6 Bcf/d legacy production

Confidence: Regional estimate

Where it occurs

  • Horseshoe Canyon (Drumheller–Red Deer–Wetaskiwin)
  • Mannville coals (deeper, wet)
  • Ardley / Scollard
  • Belly River

Live Atlas valuation (reference scenario)

1 subsurface asset priced by the Atlas engine: economic value $127B. Move the Scenario Laboratory sliders on the map to reprice.

  • Plains Coal Measures17.5K Mt in place · recoverable $140B · economic $127B (91% clears break-even)

GEOLOGY: WHAT MAKES A DEPOSIT MORE LIKELY

Methane adsorbed on coal; dry under-pressured Horseshoe Canyon seams need no dewatering, Mannville seams are wet and gassier.

Host formations
Horseshoe Canyon Formation · Mannville Group coals · Ardley coal zone
Depth range
200–1K m

Favourable conditions

  • Thick stacked seams with high gas content
  • Dry coals (no saline water disposal)
  • Existing shallow gas infrastructure to commingle

Prospectivity envelopes on the map (1)

  • Horseshoe Canyon dry CBM fairwayHighly favourable
    Dry (no water) coalbed methane in Upper Cretaceous coal zones · 200–1K m
    • Horseshoe Canyon coals 200–800 m deep with no formation water
    • Multi-seam completions commingled with shallow gas
    • Mannville coals deeper (900–1,400 m) are wet and gassier
    Source: AER CBM production statistics.

DATASETS THAT TEST THE TARGET

Stack these layers on the integrated map

Discriminating datasets first, then every catalogued public dataset tagged to this commodity. Verified endpoints draw directly; link-only entries open the publisher page.

  • Coal mine boundaries (Alberta Energy)Alberta Energy and Minerals · Coal · drawable · verifiedWhere coal has been or is being mined; coal-zone geology itself is published in AGS reports, not as a service.Source ↗
  • Active producing wells (Alberta Energy Geoview)Alberta Energy and Minerals · Wells · link only · verifiedWhere hydrocarbons are flowing today: live reservoir pressure, produced-water (brine) access, helium-bearing gas streams and infrastructure for re-entry.Source ↗
  • Bedrock geology of Alberta (Map 600 tiles)Alberta Geological Survey · Bedrock geology · drawable · verifiedWhich formation is at the bedrock surface: the first screen for outcropping targets such as silica sand, limestone, ironstone, bentonite, ammonite shell and shallow coal.Source ↗
All 12 tagged datasets
  • Bedrock geology polygons (DIG 2013-0018, queryable)Alberta Geological Survey · Bedrock geology · drawableSource ↗
  • AGS prospective areas for mineral explorationAlberta Geological Survey · Mineral occurrences · drawableSource ↗
  • NRCan Map 900A: producing mines, mineral areas, oil & gas fieldsNatural Resources Canada · Mines & operations · drawableSource ↗
  • Coal mine boundaries (Alberta Energy)Alberta Energy and Minerals · Coal · drawableSource ↗
  • Petroleum & natural gas agreementsAlberta Energy and Minerals · Mineral tenure · drawableSource ↗
  • Coal agreementsAlberta Energy and Minerals · Mineral tenure · drawableSource ↗
  • Non-Crown mineral ownershipAlberta Energy and Minerals · Land constraints · drawableSource ↗
  • Active producing wells (Alberta Energy Geoview)Alberta Energy and Minerals · Wells · link onlySource ↗
  • Groundwater wells & vulnerability (TITAN)Alberta Environment and Protected Areas · Wells · drawableSource ↗
  • Parks & protected areas (by designation)Alberta Forestry, Parks and Tourism · Land constraints · drawableSource ↗
  • First Nations reserves & Métis settlementsGovernment of Alberta · Land constraints · drawableSource ↗
  • Alberta Township System gridAlberta Energy and Minerals · Grid & base · drawableSource ↗

VALUE & VALUE CHAIN

AECO-C: C$1.80/GJ (Sep 2026)

AER AECO-C ↗

Gas-linked with a higher break-even index because per-well rates are under 100 Mcf/d.

Value chain

  1. Multi-seam completion
  2. Compression & gathering
  3. NGTL

Industries and products that rely on it

IndustryProductsAlberta capacityGrowth
Natural gas marketPipeline gas (≈37 MJ/m³)—DeclineFlat to declining; capital diverted to Montney since 2010

DEMAND & PRODUCTION PROJECTIONS

What the forecasts say

Key risks

  • AECO price
  • Shallow aquifer liability
  • Well abandonment cost on legacy inventory

DEVELOPMENT: TENURE, ROYALTY, PERMITTING

What a developer needs to know

Tenure
CBM is natural gas under the Mines and Minerals Act (2010 amendment); PNG tenure applies.
Royalty
Modernized Royalty Framework (gas).
Lead time
Months on existing leases

Permitting path

  1. AER Directive 062 (control wells)
  2. Baseline water-well testing

Infrastructure needs

  • Compression
  • Existing shallow gas gathering

Active players

Tourmaline (ex-Perpetual)CanlinBonterraPine CliffPeyto (legacy)

Recommended next steps

  • Screen Mannville coals for ECBM pilots near CO2 hubs
  • Hold inventory for an AECO recovery

MINES, PILOTS & PROJECTS (0)

Who is already working this commodity in Alberta

No operating mine, pilot or advanced project is tracked for this commodity in Alberta.

SOURCES

Profile updated 2026-10-08. Registry provenance ids: L20 (Survey Data Registry).

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