GasTech, Inc. was founded in 2001 with the primary objective of basin centered gas (BCG) exploration. Among its lease holdings, GasTech controls one of the largest BCG blocks in the Green River Basin (48,000 acres). In addition to its BCG program, GasTech is pursuing significant alternative energy projects in coal, our most abundant fossil fuel.
GasTech recognizes the acute shortage of oil and gas which the United States and the world faces, as demand outstrips discoveries. Accordingly, GasTech has initiated an Underground Coal Gasification (UCG) project in the Powder River and Green River Basins of Wyoming. UCG produces combustible gases from the in situ oxidation of coal, eliminating the cost and impacts of mining. The produced synthesis gas, or “syn gas”, is suitable for power generation in a Combined Cycle turbine, or to reformulate liquid hydrocarbons, as clean diesel. UCG has the environmental advantages of minimal surface disturbance, increased worker safety, no surface disposal of coal ash, and the potential to recover and sequester carbon dioxide. UCG has the commercial benefits of low capital and operating costs, low cost electricity and liquid hydrocarbons, and an almost unlimited coal supply – no exploration or delineation costs.
GasTech has an 80,000-acre coal lease position in the Powder River Basin (PRB) where coals are deeper than 500 feet and thicker than 100 feet, for a total coal reserve of 13 billion tons. This coal resource has the energy content of 36 billion barrels of oil. The total deep coal resource in the PRB has the energy content of 20 years of current world energy consumption. 95% of the coals in the PRB are too deep for conventional mining, but are ideal for UCG development.
GasTech’s lease position provides the perfect “natural laboratory” for the development and commercialization of UCG to help achieve energy independence. GasTech is seeking equity partners for this UCG project to develop the demonstration project and downstream commercial production.
LNC Price at posting:
$2.33 Sentiment: LT Buy Disclosure: Held
