What Should Investors Look for (Or Stay Away from) in a CBM Play?

We talked with Sprott Asset Management research analyst Eric Nuttall about the red-hot Coalbed Methane (CBM) sector in a two-part interview. He gave his tips and red flags on what to look for in the CBM sector and what to avoid. Which are his key criteria when performing an initial screening on CBM companies? What are the three ways to invest in CBM, from the riskiest to the safest?

StockInterview: What is the first condition investors should investigate when evaluating a Coalbed Methane (CBM) company?

Eric Nuttall:

Over the past year or so, coalbed methane has become a very fashionable topic for oil and gas producers. Three years ago, no operators seemed to know that they had it. Today, most companies in their corporate presentations will be quick to tell you how many