Abstract: A method for producing gas and water during and after drilling from a subterranean coal seam, including the steps of: (a) drilling a main bore intersecting the coal seam, the main bore having an upper substantially vertical portion, a lower substantially horizontal portion or portions, and a curved portion connecting the vertical and horizontal portions; (b) drilling one sumphole drainage bore exiting the curve or horizontal portion of the main bore and extending in the direction at least partially vertically and downwardly with respect to the horizontal portion of the main bore; (c) collecting gas produced from the coal seam through the main bore and branched bores; (d) removing water and effluent from the main bore both during drilling operations and afterwards through the use of parallel casing, whereby a first casing introduces compressed air or gas to the main bore and the annular space between the first and second casing is used for return of the mixture of water, effluent and air or gas to the surface;