There would be Nil reason why the share price would go south. RCI holds tenements around Blackwater. Coal is in great demand from India and hina, and will be for years to come. Clean coal technology may be 20 to 30 years away, and where else is the worlds energy going to come from????
For example Bow Energy Ltd is preparing a reserves upgrade report for its Blackwater coal seam gas (CSG) field within the Comet block 230km west of Gladstone in Queensland.
Below is an extract from an article written in Source: News Bites and the Business Spectator 11 Sep 09. (Note the certified reserves at Blackwater, and look at BOW's current share price below) RCI's market cap is only 29.5 million at the moment.
More about BOW Energy To date 559PJ of 3P reserves have been certified in the Blackwater field from the Rangal coal measures. The final 3P program core well in the field, BW 6, the southernmost well in the initial Blackwater CSG Field coring program, reached a total depth of 600m at the base of the Burngrove coal measures. The well intersected at total of 15.14m of coals desorbing gas within the Rangal and Burngrove coal measures.
At the nearby Comet CSG field, CM 1 intersected 22.5m of coals desorbing gas, CM 3 intersected 26m of coals desorbing gas and CM 2 intersected 24.9m of coals desorbing gas. Permeability testing is now underway in CM 2.
This could only be good news for RCI considering the location of BOW's certified reserves at Blackwater?
There is no way in my view, that RCI share price will go south, if their is a takeover by e.g. the chinese? We all know that they want coal to power their city's and steel mills. Looks like a goo thing for the share price IMO?
