ann.out, page-40

I agree with GLB, I don't expect much of anything on the UCG front in Queensland until the new UCG Policy is announced.

The main government focus over the last couple of years appears to have been on CSG, however with the advent of the Gasfields Commission for CSG, we may get more focus in the nearer term.

I also suspect we may be up and running overseas (hopefully with in China) before we are in Queensland. Quite frankly, my expectation for CNX UCG in Qld (or anyone else for that matter) is a couple of years. I base that on an expectation that the UCG Policy will be forthcoming in the Q3 or Q4 2013.

After that and a suitable site (possibly in the Surat Basin) is selected, then there are the EIS study and application processes. Which after the scathing report they received from the Queensland Ombudsman in relation to CXY's government processes I imagine the i's dotted and t's crossed will not be a quick process.

Should the Surat Basin be the focus, then there is also the matter of infrastructure. The Qld Gov. all but Surat Basin JV rail (214km extension) will be a value add IMO, however that will not be completed overnight either.

Of course there are other possibilities and projects as well, but they will need to be judged as information comes to hand.

In short, I don't expect a soaring SP here in the short term, however there may be rises as matters progress. Such as -

1) UCG Policy Qld intitiated.
2) Commercial contract signed (anywhere)
3) And of course the holy grail of significant income being gained for any project, including royalties etc.

I too obviously support UCG, otherwise I wouldn't be here, I also think for my money that with CNX's assets, the present SP is sub-basement pricing for a high risk high reward scenario's. Especially when one looks at CNX to date. However that is my opinion for myself on the basis that once more positive news occurs, entry price may not be around this level.

That's the theory anyway. Good luck with your own decisions, I intend mine to remain in the bottom drawer for a while, maybe with a top up now and then.