10 reasons for a liaison in south australia...

...between WEC and WPG:

1) WPGs JV partner Evergreen Energy is close to a bankruptcy filing (press release 2012-01-13).

2) WPGs subbituminous coal from Penrhyn is hard to sell without upgrading or conversion.

3) Penrhyn is a 350 MT subbituminous coal deposit that fits into WECs strategy with an exploration potential of additional 200 MT.

4) Coal quality, seam number and thicknesses and depth of overburden are generally similar to WECs Lake Phillipson coal deposit (ASX Announcement 2010-06-10). It´s likely that WECs BCB technology could be deployed to upgrade the coal from Penryhn, too.

5) The Penrhyn tenements may also contain significant water resources. Several exploration holes drilled in the past have been abandoned due to high water inflows. (ASX Announcement 2009-09-08). The coal from WECs deposit needs some treatment like the coal from Penrhyn as well, i.e. washing.

6) WPG and WEC are able to exploit synergy effects due to combined use of mining infrastructure (only 20km between both tenements).

7) WPG holds another tenement with low rank/high moisture coal of approx. 270 MT inferred resources.

8) WPG would be able to leverage its Port Pirie port land and development capability.

9) WEC could secure easy access to port capacity at Port
Pirie.

10) Both management teams are 1st class and have detailed knowledge of the australian mining sector and the permitting environment.

I wonder why WPG teamed up with EEE so quickly after some laughable 300kg have been upgraded in the US testing facility (Annual Report 2011). Have they given blinding concessions to the JV because they already had their financial back up against the wall?

WPG and WEC catched a bloody nose from untrustworthy business partners recently. Therefore Duffin and Flannery would be well advised to put their drilling heads together now !