Just over a year ago, I blogged that CNX Gas (NYSE: CXG), a natural gas exploration, development and production company that liberates the methane in coal beds and develops it into natural gas, was a stock pick with a strong future.

The release of methane from coal mines began as a safety measure back in the early 1980s. However, mining companies soon realized that money could be made from this coalbed methane. CNX Gas is one of the companies to tap this gas resource. It has enormous coalbed methane reserves, primarily in Appalachia , and the reserve life of its proved reserves is nearly 22 years.

At the time of my earlier blog, CNX Gas had recently split off from CONSOL Energy, a coal-mining company (which still owns over 80% of CNX's stock), and was going like gangbusters. In 2005, it saw 50% growth over 2004, and the first quarter of 2006 showed a 40% growth over the first quarter of 2005. CNX's pre-tax and net profit margins were twice as high as the industry average.

At the time, it was trading in the low $20s, and I recommended it was a good buy. Today, it is trading just over $30 and still presents a good buy, in my opinion. I'm not alone. A Bank of Montreal report issued this week notes that CNX is focused on evaluating 93% of its unevaluated reserves, and once the Rockies Express pipeline comes online, it will likely be the gas producer with the lowest prices in the country. It is aiming for 15% production growth in 2008, and analysts are confident that CNX is on track. So am I.

Type of stock: A natural gas exploration, development and production company that also converts coalbed methane to natural gas, with extensive proven (and unproven) reserves and a continuing record of extraordinary growth.

Price target: The Bank of Montreal report puts the target price at $37. Currently trading nearly at $31, I could see CXG hitting $40 in a year.