Underground water present in aquifer has the tendency to encroach during underground coal gasification (UCG) operation because of pressure reduction in the reservoir. The water seepage into the cavity can act as a source for H-2 production through char-steam gasification and water gas shift reaction. The enhanced production of H-2 raises the production of hydrocarbons in UCG product gas. Low temperature steam or superheated steam can be used for the production of H-2 enriched syngas in the in-situ gasification operation. However, low temperature steam causes difficulty in sustaining the combustion front in a UCG seam while superheated steam may lose its sensible heat through pipelines or ash heap in case of deep coal seam. It is necessary to utilize a cheaper gasifying medium for replacing steam in UCG for economic operation. In the present study, four different experiments were conducted using three different coal blocks, which are having similar properties, in order to simulate both the effect of ground water influx and O-2/moisture gasification in the context of UCG. Novel humidified oxygen experiments show a better alternate to the steam based UCG gasification for enhanced production of H-2 and hydrocarbons. Results show that a maximum concentration of 31% H-2, 21% CH4 and 3% C2H6 is generated using humidified oxygen as a gasifying medium. (C) 2017 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.