announcement coming...., page-41

Hi Bowral
Sorry to disappoint you with your prediction that there is cash flow within a year from the CSG. First you have to have all the required permits and fulfil the environmental issues what can take up to a year to get. If you also estimate a 150 K for one hole (just the drilling not the well installation with hook up to gathering system and then down the pipeline to the customer). Then comes the exploration drilling to determine the permeability of the coal and the testing of the methane flows. The best case scenario would be that you have about 50 wells which get’s close to 7.5 mil. If you want to throw in a 12MW PowerStation you would be up for about 60-70 mil. Then you need again permits and landowner agreements for the hook up to the grid etc.
The whole evolution would take up to 2 years and about 15 mil which is conservative without the PowerStation
I worked in the CSG industry for the last eight years and it gets harder and costly everyday with the environmental issues.