next steps, page-3

Hi sodhim. Whilst I don't think things are that bad it would be nice to see some progress to say the least.

IMO, unfortunately the main UCG players do not have the money or political clout the CSG players do and waiting for the QLD bureaucratic pot to boil and become productive is definitely frustrating.

I do agree that the bank balance is diminishing and I think that the SP is also doing the same on the expectation that unless Shanxi decide to proceed sooner than later and are able to obtain the necessary approvals then we may require another capital/equity raising in the not to distant future.

Also I think CNX has proven its technology with the completion of independent "elctro-seismic survey that confirmed that it's underground coal gasification technology is operating as expected."

http://www.proactiveinvestors.com.au/companies/news/42581/carbon-energy-survey-confirms-underground-coal-gasification-performs-as-expected-42581.html

I mostly came in to reply regarding your "get legal help or at least find ways to close the deal". IMO it is far more involved than that and dealing with a different system than what we are used to in Australia.

CNX has reaffirmed it's partnership with Shanxi Coal. So really the ball there is in Shanxi Coal's Court, so to speak. Even though we are not privy to the fine print I do think Shanxi are getting a good deal here.

However as stated in April 2013, there was a new Mayor appointed to Changzhi City and apparently the proposed project cannot proceed without local government approval there.

http://www.carbonenergy.com.au/IRM/Company/ShowPage.aspx/PDFs/1690-85248358/CarbonEnergyShareholderUpdate

What requirements are needed at that level for a Communist bureaucratic system I don't know. The old Mayor was removed from his post along with the Director of Work Safety department. The Deputy Mayor, the Environmental Protection Chief and five other officials were disciplined. Twenty four corporate executives received warnings and demotion and removal from their posts...

http://www.globaltimes.cn/content/754626.shtml

http://www.chinadaily.com.cn/business/2013-02/21/content_16242327.htm

I don't know what affect this incident has had on the proposed UCG project progress, however I would be surprised if it hasn't slowed things down a bit with the transition of new staff. Hopefully the above CNX technology independent assessment proving such works as claimed will assist. But again we are in the hands of bureaucracy (of a different system with differing intricacies than most here would be aware of, including me) before proceeding.

I'm sure Shanxi Coal will be proceeding here as they see fit, IMO it is nothing we should be sticking our nose in other than assisting Shanxi with whatever document proof the may require. This is assuming Shanxi Coal has a sooner than later agenda.

I'd love to fill in the assumptions there, but unfortunately we can't and it would be impolitic for CNX to do so if they are aware of any.

The only other strategic advancement I can see is for CNX to take a leaf out of CXY's book and look at advancing one of the three longwall possibilities. I few hurdles there though. Cash being one of them. We would need a JV for that and considering the present coal predicament of price and infrastructural costs it may not be viable at this time without throwing the baby out with the bathwater.

I do agree Admin could do with a permanently appointed CEO. What the delays there are, someone else might be able to elucidate.

I will say that IMO CNX assets even just utilizing Surat Basin even at fire sales (2Bt Coal, .725tcf 2P gas) may outweigh the present SP.

I put my sentiment here as Hold, but I may be topping up from time to time.

My 2 cents worth anyway, cheers.