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Clean Global Energy Limited (ASX:CGV) Quarterly Activities Report March 2010
Clean Global Energy Limited (ASX:CGV) Quarterly Activities Report March 2010
Sydney, April 30, 2010 AEST (ABN Newswire) - Clean Global Energy Limited (ASX:CGV) releases Quarterly Activities Report for the period ending 31 March 2010.

Corporate Highlights

1. Joint Venture with Greenpower

Clean Global Energy Limited has identified a number of potential UCG sites situated on Greenpower Energy Limited's (ASX:GPP) Victorian coal tenements and has issued an initial selection notice to Greenpower over EL4500 under an existing Heads of Agreement (HoA) entered into in August 2009 (see announcement 17 August 2009). Clean Global Energy may issue additional selection notices over other Greenpower coal tenements in the near future.

It is proposed that the current HoA with Greenpower will be converted into a formal Joint Venture Agreement on the same terms and conditions as the existing HoA. The key terms of the existing HoA are:-

- Clean Global Energy and Greenpower intend to enter into a joint venture agreement whereby Clean Global Energy will commit to expend A$1,250,000 within a 5 year period to earn a 75% interest in the selected coal tenements. This expenditure will go towards the initial works in preparation for the construction and commissioning of a 1PJ per annum UCG Syngas Pilot Plant;

- Following the initial preparation work, Clean Global Energy intends to fund and work towards the design, engineering, construction and commissioning of a 1PJ UCG pilot plant. Upon successful commissioning of the pilot plant Clean Global Energy will undertake a feasibility study for the construction of a commercial UCG Syngas Plant in the range of 5-50PJ per annum;

- Greenpower will be offered the opportunity to jointly fund the commercial plant on the same percentage ownership of the joint venture. In the event Greenpower does not wish to participate in funding the commercial plant Clean Global Energy may increase its interest in the joint venture to 85%.

Clean Global Energy has commenced work on a site characterisation and analysis program to identify the ideal location/s on Greenpower's coal tenements for the proposed UCG project. This is the first step in working towards a UCG pilot plant which can be scaled up to a commercial UCG plant capable of producing large quantities of Syngas.

Clean Global Energy has also commenced discussions with third parties to participate in the development of a new 400Mw UCG Syngas-fed power station for Victoria. A UCG Syngas-fed power station may provide a better alternative, both environmentally and economically, to Victoria's current coal and energy situation.

2. China Joint Venture

Clean Global Energy progressed its China JV following a recent visit to that country by Clean Global Energy's Managing Director, Mr. John Harkins, and China Business Manager, Ms. Julie Zhang.

AuSino Energy Limited (AuSino) has been registered in Hong Kong. The appointment of directors and shareholders is currently being finalised by our lawyers, King & Wood (Hong Kong).

AuSino has held further talks with interested parties to provide relevant Corporate Advisory and Lead Broking services. These discussions have provided AuSino with a number of options to consider prior to making final appointments and firm capital raising plans.

The team later flew to the City of Xilinhot in Inner Mongolia to undertake site visits and meet local officials. Mr John Harkins, was greeted with a traditional Inner Mongolian welcome ceremony upon arrival at the Airport.

Whilst there meetings took place with local government representatives and other stakeholders to progress AuSino Energy's UCG plans in that region. Whilst this progress has been slower than anticipated our meetings and plans have been well received. The area is rich in coal assets and the local authorities and stakeholders exhibited a keen desire to realise the energy trapped in those assets in the full knowledge that much of those coal resources are stranded and eminently suitable for Clean Global Energy's UCG process.

Clean Global Energy has progressed the site selection process by visiting a number of potential sites in Inner Mongolia. These sites are located approximately 85km's from Xilinhot, a major regional city. Xilinhot is approximately 670km's from Beijing and has of itself a population of some 350,000 and a regional population of over 15million people.

Clean Global Energy has also engaged international engineering and consulting firm SRK Consultants to undertake a range of geological and other related services for our China JV's through their Beijing office.

3. HoA of Liberty Resources Limited (ASX:LBY)

Clean Global Energy and Liberty Resources have continued their duscussions on further development of Liberty's Bentley and Goondalah EPCA's. Liberty advised that these tenements have been proposed for granting by the Queensland Department of Mines and Energy and are going through the Native title process.

Liberty expects the tenements to be granted in the first half of 2010.

The Bentley area is a "non-overlapped" tenement which consists of a 3.8m Coal Thickness covering an area of 77km2 with an estimated 23m Net Coal Thickness. The area has 3 planned drilling holes at depths of ~ 760m.

The Goondalah area is a "non-overlapped" tenement which consists of a 4m Coal Thickness covering an area of 77km2 with an estimated 21m Net Coal Thickness. The area has 3 planned drilling holes at depths of ~ 790m.


1. Coal Resources

Clean Global Energy contuined to expand its coal interests with 5 new EPC applications in Queensland and 1 new EL application in Victoria:-

a. EPCA's 2027, 2029, 2091,2094 and 2095 in the Bowen Basin, Queensland

b. ELA 5270 in the Gippsland Basin, Victoria.

EPCA's 1751 and 1864 in the Bowen Basin were granted in the March quarter. EPCA 1745 has been proposed for granting. A summary of Clean Global Energy's coal tenements are as follows:-
Tenure       Tenure    Status     Square
Type         Number                KM's
EPC           1745    GRANTING      167
EPC           1864    GRANTED       682
EPC           1751    GRANTED       148
EPC           1507    GRANTED       490
EPC           1508    GRANTED       429
EPC           1539    GRANTED        48
EPC           1506    GRANTED       458
EPCA          1637   APPLICATION    192
EPCA          1592   APPLICATION    119
EPCA          1612   APPLICATION     77
EPCA          1748   APPLICATION    336
EPCA          1861   APPLICATION    183
EPCA          1973   APPLICATION     48
EPCA          1978   APPLICATION     61
EPCA          1982   APPLICATION     90
EPCA          1986   APPLICATION    144
EPCA          2004   APPLICATION    202
EPCA          2006   APPLICATION     55
EPCA          2009   APPLICATION     63
EPCA          2027   APPLICATION    147
EPCA          2029   APPLICATION    381
EPCA          2091   APPLICATION     51
EPCA          2094   APPLICATION     48
EPCA          2059   APPLICATION     55
ELA           5270   APPLICATION    938
TOTAL                             5,612
On 15 February Clean Global Energy lodged notices with the Queenland Department of Mines and Energy nominating its EPC's and EPCA's for designation as mineral "F" for future Underground Coal Gasification as required under the Queensland Government's UCG Policy.

2. Commencement of Drilling

Mouzsouris Drilling has commenced drilling on EPC1506. The drill rig commenced work on Sunday 21st of March spudding the first hole.

Stage 1 of Clean Global Energy's drilling program will see approximately 4,000m to 5,000m of drilling over a minimum of 12 chip holes and 2 core holes on Clean Global Energy's EPC 1506. Depending on the outcome of drilling on EPC 1506 some initial drilling may be undertaken on EPC 1508, which is in close proximity to EPC 1506.

The drilling program will take approximately 8 to 10 weeks to complete from start. Clean Global Energy will provide a progress report to the market part way through the drilling program. We expect this initial report to be released to the market in late April, early May. Clean Global Energy anticipates reporting a JORC compliant resource following completion of the Stage 1 drilling program.

3. New Explorartion Licence in Victoria

Clean Global Energy has lodged an Exploration License Application with the Victorian government for a coal exploration area in Victoria's Gippsland coal basin.

The area known as ELA5270 is approximately 900 square kilometers and contains numerous exploration and other wells.

Initial indications from within the well explored area of ELA5270 suggests that there are areas that may be suitable for Underground Coal Gasification.

ELA5270 adjoins Greenpower Energy's (ASX:GPP) EL4500 and other Greenpower tenements. The addition of ELA5270 will allow greater commercial opportunity for CGV and the joint venture with Greenpower.

Clean Global Energy is currently preparing a 1st stage works program for EL4500 and may expand this program to include ELA5270 depending on the timing of approvals for the Exploration License Application.

Clean Global Energy will continue to explore opportunities to expand its tenement portfolio primarily in Victoria and Queensland but also elsewhere in Australia.

4. Underground Coal Gasification Plant Design

Clean Global Energy has commenced work on the initial design and layout of a modular Underground Coal Gasification plant that can be utilised on any of our designated UCG tenements.

Whist the final configuration of the UCG reactor can't be completed until a final site has been selected the above ground plant and equipment, including compressors, laboratory, control room, Syngas clean up plant, site offices, amenities, pipelines, flares, and storage facilities are currently being determind.

Upon completion of the intitial design, which should be by late June, we will put the full engineering works out to tender. This timing should coinside with completion of our site selection in Victoria.


1. Expenditure
Key expenditure for the quarter was on exploration and evaluation (A$133,000), development (A$75,000) and administration (A$469,000). Cash at the end of the quarter was A$4.182m.

2. Proposed Comtiments

Capital commitments for the next quarter are focused on completion of the 1st Stage drilling program and commencement of the 2nd Stage drilling program which is currently being finalised.

We also envisage our committment to the China joint venture ($US350,000) being contributed this quarter.

For the full Clean Global Energy Limited Quarterly Activities Report, please click the following link:


John Harkins
Chairman and Managing Director
Clean Global Energy Limited
Tel: +61-2-9230-0318

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