Abstract: Seismic reflection signal is a compound signal caused by a number of geological factors under the ground (such as lithologic characters of formation, physical properties, thickness and assemblage). The traditional seismic data are difficult to accurately identify recoverable CBM in No.3 coal measure of Permian Shanxi Formation in Zhengzhuang area of Shanxi. Wavelet decomposition and reconfiguration technique is used to divide conventional seismic data trace into wavelet set of different frequencies. Combined with the results from spectrum analysis of the CBM bearing measure and drilling data in the research zone, the favorable frequency band is determined for wavelet reconfiguration. Comparing the seismic data acquired from reconfiguration with the drilling data for analysis, it is found that the coal measures in this area are obviously characterized as “strong amplitude for high gas content and low amplitude for low gas content.” Such characteristics can be used to effectively differentiate high gas-bearing wells from dry wells and provide the basis and support for determination of well positions in the lateron stage. The technique has achieved good results for application.