A continuous growth in the global economy and population requires a sustainable energy supply. Maximizing recovery factor out of the naturally occurring hydrocarbons resources has been an active area of continuous development to meet the globally increasing demand for energy. Coalbed methane (CBM), which is one of the primary resources of natural gas, associates complex storage mechanisms and requires some advanced recovery techniques, rendering conventional reserve assessment methods insufficient. This work presents a literature review on CBM in different aspects. This includes rock characteristics such as porosity, permeability, adsorption capacity, adsorption isotherm, and coal classification. In addition, CBM reservoirs are compared to conventional reservoirs in terms of reservoir quality, reservoir properties, accumulation, and water/gas saturation and production. Different topics that contribute to the production of CBM reservoirs are also discussed. This includes production mechanisms, well spacing, well completion, and petrophysical interpretations. The main part of this work sheds a light on the available techniques to determine initial-gas-in-place in CBM reservoirs such as volumetric, decline curve, and material balance. It also presents the pros and cons of each technique. Lastly, common development and economic challenges in CBM fields are listed in addition to environmental concerns.