Coal seam gas reservoirs are complex both geologically and in the mechanism of gas production. Understanding these naturally fractured reservoirs for two-phase (gas-water) flow conditions is often limited by a lack of data. This paper illustrates that reservoir simulation is a powerful tool which can be used to determine key data requirements, and how variability in reservoir properties and operating practices affect performance at the field level. The paper presents examples of how reservoir simulation can be used to assess the efficiency of well completions (fracturing or cavitation), identify candidate wells for remedial treatment, examine methane drainage in advance of mining, and assess the impact of errors in measured data on long-term gas production forecasts.