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Clean Global Energy Limited (ASX:CGV) Quarterly Report June 2010
Clean Global Energy Limited (ASX:CGV) Quarterly Report June 2010
Sydney, Aug 2, 2010 AEST (ABN Newswire) - Clean Global Energy Limited (ASX:CGV) is pleased to release Quarterly Report for June 2010. Highlights for the quarter include:

Corporate Highlights

1. China Update

Clean Global Energy has continued to progress its China Joint Venture this quarter. After an extensive review and advice on the listing rules for the Hong Kong Stock Exchange, AuSino Energy plans to undertake a pre-listing private capital raising of US$30 million to fund the construction of a commercial, enriched air, 7PJ Syngas plant in Inner Mongolia with a proposed off-take agreement with a nearby state-owned power station (subject to negotiations). Expansion of this commercial plant to 30PJ would be partially funded by an Initial Public Offering of AuSino Energy Shares on the Hong Kong Stock Exchange and bank funding.

Strong interest has been shown in funding the China joint venture and we have received a Letter of Intent from a China based investment group to provide the US$30million private funding. This Letter of Intent also includes a proposal to potentially fund the purchase of a substantial coal lease in Inner Mongolia.

The events surrounding UCG Projects in Queensland have not affected the proposed funding for the Inner Mongolian Project. Following recent discussions, the investment group have indicated they will now move forward and commence their due diligence process in respect to the project.

AuSino Energy is also currently reviewing an opportunity to acquire its own coal lease in Inner Mongolia. A detailed analysis and extensive geological and hydrology data has been provided to Clean Global Energy by the vendor coal company. This potential acquisition will also form part of the China based investment groups due diligence.

2. Greepower Energy Limited (ASX:GPP)

Clean Global Energy has now independantly applied for and been granted Exploration License EL5270 by the Victorian government in the Gippsland coal basin.

Clean Global Energy is focussing its Victorian exploration activities on EL5270 however Clean Global Energy is continuing its discussions with Greepower Energy Limited about advancing the Joint Venture on their Victorian coal tenements, in particular EL4500.

3. Liberty Resources Limited (ASX:LBY)

Clean Global Energy has advised Liberty Resources that Clean Global Energy will not be proceeding under the original Heads of Agreement as it has effectively lapsed in its present form. Both companies are continuing discussions.

4. Executive Appointments

Clean Global Energy filled two key positions with the appointment of Wayne Rossiter as Chief Financial Officer and Carl D'Silva as Exploration and Mining Manager.

These appointments represent an important step for Clean Global Energy in building its executive team for the delivery to market of its suite of energy solutions using Underground Coal Gasification technologies.

Operations

1. Coal Tenements

Clean Global Energy contuined to expand its coal interests with the granting of EL5270 in the Gippsland Basin, Victoria and application over new tenements in Queensland.

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. Drilling Update

Stage 1 of the exploration drilling program on CGE's EPC1506 tenement in Queensland has confirmed the company's initial opinion that the coal seams appear suitable for Underground Coal Gasification.

Stage 1 drilling activities are nearing completion and will prove up the extent of coal and the quality of the black coal intersected within the Walloon Coal Measures. Drilling to date has been a combination of core and chip holes. .

The core samples have been sent for quality testing and analysis and the results are comparable to some UCG sites in the former Soviet Union, which have been running successfully since the mid-1950s in similarly thick coal seams

With the results obtained thus far CGE is now working towards an announcement of a maiden JORC resource.

Once this resource is established Clean Global Energy will apply for a Mineral Development Lease over the EPC. Given the recent events in Queensland, we believe the approval process for the Mineral Development Lease may take some time, however, we remain confident that Underground Coal Gasification and our Mineral Development Lease will receiveapproval in Queensland.

3. New Exploration Licence

During the quarter CGE was granted EL 5270 in Gippsland, Victoria. EL5270 is approximately 900 square kilometers and contains numerous exploration and other wells.

Initial review of this area indicates black coal formations that appear suitable for UCG occur within this lease area. A detailed review of existing mining and borehole data is underway in preparation of designing a drilling program expected to be conducted in 2H10.

EL5270 represents a strategic position in the Victorian energy corridor being in close proximity to power generators and other potential clients and Syngas customers.

4. Underground Coal Gasification Plant

Clean Global Energy has now substantially completed the initial design and layout of a modular Underground Coal Gasification plant, including Syngas processing that could provide a range of Syngas products suitable for multiple markets. However, our primary market is the power generation industry.

This modular design will form the basis of the configuration of customised site specific layouts which can be applied to any UCG project. This design work covers the Linear CRIP UCG Reactors, above ground plant and equipment, including compressors, laboratories, control room, Syngas clean up process, site offices, amenities, pipelines, and various other components. Clean Global Energy is currently seeking advice on the potential to patent the entire process.

Financial

1. Expenditure

Key expenditure for the quarter was on exploration and evaluation (A$1,083,000), development (A$265,000) and administration (A$468,000). Cash at the end of the quarter was A$3.1m.

2. Proposed Commitments

Capital commitments for the next quarter are focused on completion of the 1st Stage drilling program, initial work on our Victorian EL5270 and China Joint Venture expenditure which is estimated at A$700,000.

For the complete Clean Global quarterly report, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63458-ASX-CGV-499927.pdf

Contact

John Harkins
Chairman and Managing Director
Clean Global Energy Limited
Tel: +61-2-9230-0318
www.cleanglobalenergy.com.au



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