The relative attractiveness of coalbeds as source rocks and potential gas reservoirs are functions of the amount of methane generated by coal and the amount of methane retained in coal. The amount of methane gas generated during the coalification process depends primarily on the thermal maturity (rank) of the coal and the volume (thickness and lateral continuity) of coal present. The retention of methane gas in a coalbed reservoir will depend on a combination of factors including depth (i.e., fluid pore pressure), temperature, coal rank, and the hydrogeologic environment. Given a coalbed with the proper combination of methane generation and storage, the final and most critical factor is the production potential of the reservoir. Experience has shown that short duration te ting (drill stem testing) does not provide the necessary data to address this issue. The production case histories presented here suggest that long duration production testing is the only way to adequately assess economic potential.