A market analysis was performed on the shallow drilling market within the United States and Canada. The goal of the market analysis was to identify key trends and the current state of the industry. The key item of the market analysis is the lack of a current microhole market to evaluate. Therefore trends needed to be inferred from current shallow drilling activity. The current drilling activity trends definitely indicate that there is a potential market for coiled tubing drilling in the United States. The market has been well established in Canada and the technology should be easily adaptable to the United States market. In trying to establish a business case for Microbolic drilling it became apparent that a Microhole Coiled Tubing Drilling Rig would need to be capable of performing other operations to keep utilization high enough keep the cost per job down until the Microhole Market can be better established. An operational study was performed to evaluate the operation of coiled tubing drilling rigs and to better understand all the parameters that might have a bearing on the design and efficiency of a Metohole Coiled Tubing Drilling Rig (MCTR). The information gathered in the operational study was used to evaluate existing coiled tubing drilling rigs. During the evaluation we looked at different efficiency features and the ability of the equipment to perform the desired task within our scope of work. Many of the existing coiled tubing drilling units are very efficient and perform well in the area in which they operate. The major obstacle that we found is that the majority of the units are overweight or over dimension for use in the United States. This made the selection of a unit to evaluate at our Rosharon test site difficult as any unit selected to be modified would not meet the requirements of being DOT road legal.