Carbon Energy (ASX:CNX) Quarterly Report for Period Ending 31 March 2010
Brisbane, May 3, 2010 AEST (ABN Newswire) - Carbon Energy Ltd (
ASX:CNX) is an emerging energy Company whose purpose is to produce clean energy (power and synthetic natural gas) and chemical feedstock from Underground Coal Gasification (UCG) Syngas. It aims to do this by pursuing the following key areas of focus:
- Continuous improvement of UCG technology and the development of complementary technologies that will ensure CNX will develop a superior technical capability in the UCG Syngas industry.
- Expand its coal resource inventory by exploration within its current tenements or through identification of suitable joint venture opportunities and acquisitions, leveraged off CEL's ability to successfully undertake UCG Syngas production in Australia and globally.
- Identify and develop commercial opportunities using Syngas derived from Carbon Energy's superior UCG technology for the production of power, synthetic natural gas, chemicals and gas to liquids (GTL) either in the Company's own right or by way of strategic partnerships.
Highlights from the Quarter:
- On 29th March Carbon Energy announced that the Pacific Road Resources Fund had agreed to acquire a 10% stake in Carbon Energy from the CSIRO. The acquisition followed a six month comprehensive due diligence process and is a strong third party endorsement for Carbon Energy's strategy and UCG technology.
- Pacific Road has an option to acquire the balance of CSIRO's 4.8% interest in carbon Energy.
- Pacific Road may elect to transfer some of its position to an investor or investors in its funds.
- Carbon Energy welcomed the appointment of Louis Rozman as a non-executive Board Director following Pacific Road agreeing to become a cornerstone investor. Mr Rozman brings extensive knowledge of the resources sector and energy sector including from his time as Chief Executive Officer at CH4 Gas Limited (merged with Arrow Energy).
- On 5th March Incitec Pivot Limited advised that it had increased its ownership of Carbon Energy to 11.358% in an on-market trade.
- On 3 March Carbon Energy announced an update and re-scheduling of its 5 MW power station project. Subsequent to March the company has advised that the commissioning of the 5 MW project will now be completed utilising gas from its planned second UCG panel, anticipated to be in August/September 2010.
- On 22 January Carbon Energy announced the appointment of Andy Mifflin as General Manager Technical Services. Andy has over 30 years experience in the coal industry in the UK and Australia and in this new role will evaluate and develop coal resources suitable for underground coal gasification in Australia and overseas.
- Retains cash reserves of over $22 million as at 31 March 2010.
For the full Quarterly Report, please visit:
http://www.abnnewswire.net/media/en/docs/62784-ASX-CNX-220312.pdf
About Carbon Energy Limited
Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is building a gas business, utilising its unique keyseam technology.
The Company is committed to providing industrial gas users with an affordable and secure source of high quality feedstock, as gas prices remain strong, through increased demand across our key markets.
Carbon Energy is the only company to complete a full-lifecycle, commercial scalable underground gasification trial. The Company's keyseam technology has successfully accomplished all the recommendations outlined by the Queensland government's Independent Scientific Panel (ISP) which included intense, independent environmental scrutiny.
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