commentary for investors in qld gas stocks, page-2

I post below the authors views; however and whilst I share the authori's enthusiasm, there is rather a paucity of analysis for the very high extraction estimates of UCG compared with other methods.

That said, I have bought a few chunks today at 25.5. Seems cheap for the potential of this stock. I see the XAO was down markedly this morning but is not beginning to trend back up.


"Underground Coal Gasification is the method of burning coal deposits in the ground and extracting the resultant gases without the need for mining. It is therefore much cheaper than mining. It also allows access to coal deposits that cannot be accessed using conventional methods. UCG has fewer greenhouse emissions than conventional coal fired powerstations. UCG gases (syngas) can also be used for a variety of chemical processes including fertilizer production (and fertilizer is commanding high prices). The resultant cavity created by the extraction of the coal gases is replaced with water. This supports the maintenance of the existing water table. It is a low cost and commercially proven clean green technolgy.

UCG is expected to yield 8 to 16 times more energy than equivalent coal seam gas extraction and 15 times as much methane. Of the UCG companies operating in Queensland, I would expect the Carbon Energy CSIRO technology, which is now proven, to be at least 10 times that. We are looking at the early days of a completely new form of clean power generation. Now the technology is proven and commercialisation is about to commence I am swapping my CSG shares for UCG."