Hi Dougo, The drilling results that I believe people are talking about are in connection with a 11 hole drilling program assessing coal deposits at depths less than 200m in EPC's 1371 and 1375 (see 10 March 2010 announcement).
Less than 200m is generally considered to be too shallow for UCG to avoid subsidence, gas escape and potential shallow acquifer contamination (see pg 17 of this comprehensive ucg document - http://www.coalonline.net/catalogues/coalonline/82189/7180/html/7180.html).
It looks like a shallow thermal coal play, that is right next door to existing infrastructure. I would imagine that they would be looking to generate a significant cash return by selling the resource and putting the funds into their UCG projects.
If the results are halfway decent the SP could move hard and fast considering their small market cap and the general interest in coal at present.
Anway, I'm optimistic after todays SP spike.
Cheers, turtle
CNW Price at posting:
10.1¢ Sentiment: Buy Disclosure: Held
