Yes agree that a deal most likely with a Victorian power station will come first as their demand/requirement is foremost.
Here’s some further big picture info regarding Geostar brown coal assets in Victoria. Their principal asset (EL 4416) is located in the Gippsland Basin area and actually has an estimated 14 billion tonnes of brown coal. If we go off reports that estimate the total in situ is 200 billion tonnes (not necessarily all recoverable) then Geostar through its subsidiary Victorian Coal Resources (VCR) currently has access rights to around 7% of Victoria’s entire brown coal resource.
VCR are clearly keen to leverage its large brown coal asset having recently signed in Sept an MOU with Cougar Energy (UCG technology) to investigate the potential for Coal Bed methane (CBM) projects-Gastor /Geostar have already been looking at CBM opportunities and using UCG technology for a number of years as I suspect this technology is the only technology enabling the full utilisation of the more deeper deposits (downwards of 600 metres or so) found in EL 4416. That said, my understanding is that depths vary within the large EL 4416 area so I wonder what technology Geostar/VCR will pursue to leverage the more shallow deposits of its asset?
ESI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
