there may be more to it?, page-59

Mrs_Peel,

This is how I see it (which is a little different to CBob).

WRI has developed a technology to enhance BM in low grade coals. That technology is known as Biogenic Methane Enhancement (BME)

An Australian company currently holds a licence for the exclusive use of the technology in this country. That company EBM limited has been allowed to sub-licence the technology for use in Australia.

ROG has signed a term sheet for the testing of one well and if successful will be allowed to obtain sub-licences for the use of the technology under the conditions described in the term sheet - 25% farm-in and a production royalty payment to EBM (percentage not specified).

Interpreting the meaning of the words "its acerage" is difficult but the reasonable interpretaion would probably only include permits for which ROG is the operator - so in my opinion it would not be available to CTP through this agreement with ROG.

On the other hand, there is nothing to stop CTP making its own agreement with EBM (or Transol if they exercise their rights to acquire the whole of EBM) once the technology is proven.

I think a 25% farmin might be a little steep but if it does increase CSG yields by 10x then maybe its not too bad. Partly, it will depend on whether other technologies might come out better on a cost benefit basis.

Cheers

Badfish