Recirculation of heat has been used for decades to react mixtures beyond the conventional flammability limits. One means of obtaining this recirculation is through counter-flow heat exchange. In contrast to filtration combustion in which a reaction front propagates through a packed bed, counter-flow heat exchange results in stationary reactions zones. The objective of this study is the numerical investigation of reaction zone characteristics of ultra-rich methane/air combustion with counter-flow heat exchange. The flow channels of a counter-flow heat exchanger are modeled in two dimensions, and detailed reaction chemistry is described by the kinetics mechanism GRI 2.11. The results show that combustion starts in the vicinity of the channel walls, resulting in tulip-shaped reaction zones. The impact of operating conditions on combustion characteristics is studied in terms of inlet velocity and equivalence ratio, and findings are related to recently published experimental data.