The commercial develop of coalbed methane from the Powder River Basin has demonstrated that low-rank coals can be a viable source of gas. Currently over 20 000 coalbed methane wells exist in the Powder River and it is predicted that there will be 50 000 wells by 2010. What makes the Powder River Basin successful is the thickness of the coal (in excess of 30m) as well as the low ash content (<5 per cent). even though the volume of gas ton of coal is low (2-4 m 3 ton) the low costs of the production wells makes the prospect highly profitable. some of the same characteristics in the powder river basin have been recognised within new zealand coals. based on these characteristics, kenham holdings with crl energy acting as their technical advisers, lodged petroleum exploration permits over a wide variety of deposits in new zealand. these deposits range from subbituminous a to lignite in rank with thicknesses in excess of 30 m for some seams. using known data for new zealand coals of appropriate ranks as well as overseas examples, initial estimates indicate that there could be as much as 562 177 tj of energy within all these deposits.>