Greetings Investors,

Over the last two newsletters I have talked about natural gas and coal, two markets I believe will be good areas for investment for quite a while. However, an irony of these two energy sources is that sometimes they are combined together into something called coal bed methane or CBM for short. Methane, in its gaseous state is also called natural gas, and coal beds often have lots of methane trapped inside the coal. However, unlike methane deposits located in sandstone which occur in gaseous form, methane in coal is trapped in the coal matrix as a solid. Under pressure, the methane in coal beds will convert to natural gas when a well is drilled into the formation and the pressure is reduced.

Although it is not widely known, in the US about 10% of the total natural gas production comes from CBM and this percentage is growing ever year. This is because much of the "easy" natural gas located in sandstone reservoirs has been found and CBM is the next best place to find methane. Just like oil sands, CBM is becoming the white knight of the natural gas industry. But what I like best about CBM is no one is really talking about it, yet.

I believe this will change over the next several years as natural gas prices remain high and demand increases.

Several large energy companies derive some of their revenue from CBM but here are two interesting pure plays in the CBM market that look undervalued.

Ember Resources (EBRRF on the US exchanges or EBR on the Canadian Exchanges) owns leases on over 360,000 acres of land in Alberta containing CBM. Spread across several formations in different areas of Alberta, Ember Resources' total methane reserves exceed 1 trillion cubic feet of natural gas equivalent. Right now, natural gas sells for about $10 per thousand cubic feet. This means the total value of Ember Resources CBM deposits could be in the range of 5 to 10 billion US dollars if natural gas prices remain high. However, the total market cap of Ember Resources is less than $200 million US dollars. Here is a link to their website for more information: http://www.emberresources.com.

Williams Coal Seam Royalty Trust (WTU) is a royalty trust that earns revenue from natural gas production from coals seams in the San Juan Basin in Colorado and New Mexico. This company, like most royalty trusts, pays almost all of its income directly to shareholders in the form of quarterly dividend payments. The current dividend yield on WTU is over 8% and the dividend rate has been growing at more than 10% per year. Here is a link to their website for more information: http://www.wtu-williamscoalseamgastrust.com.

Speaking of investing ideas, a question I often get asked by many of you is how I go about finding investing opportunities?

To answer that question and show you the tools I use to do my research, I have decided to conduct an investing Teleseminar.

If you are looking for hands-on assistance with your investing, please join me on January 22, 2006 for the Rogue Stock Investor Teleseminar.

What will you learn during the Rogue Stock Investor Teleseminar?

- The 7 Factors You Should Investigate Before You Invest In Any Company
- How You Can Research Companies Like the Pros Without Spending a Dime of Your Own Money
- How You Can Rapidly Screen Thousands of Companies Using Any Criteria You Choose
- Your Best and Most Reliable Sources for Investing Information
- Your Guide to Finding the Best Investing Opportunities in 2006
- What Industries You Should Avoid During 2006
- My Investing Crystal Ball for the Next 10 Years and Beyond

Also, following the Teleseminar, you will receive a link to download an audio file of the Teleseminar in MP3 format that you can listen to at any time.

As a special bonus, if you signup for the Teleseminar by January 20, 2006, I will give you a free download of my new book "Rogue Energy Investor."



Rogue Energy Investor tells you exactly how to find the top energy companies in the most profitable and undiscovered energy markets including oil sands, uranium, natural gas, coal and alternative energy including solar, fuel cells and hybrid cars.

In Rogue Energy Investor, I show you how to discover tomorrow's winners today.

Here is your link to signup for the Teleseminar and receive your copy of Rogue Energy Investor:

http://www.rogueinvestor.com/teleseminars/stock_investing_2006.html 

Happy Investing,

Bryan Rundell