Ann: CNX's UCG Syngas Power Station - Commiss, page-2

re: Ann: CNX's UCG Syngas Power Station -...
Sigh ... delays are inevitable with new technologies ... announcements like 5MW production by Dec 2009 are made with the best of intentions. It'l be a good year for CNX and CXY I feel.

Dex

ASX Announcement
25th January 2010
Australia`s first UCG syngas Power Station - Commissioning Update
Carbon Energy (ASX: CNX) advises that final stages of the construction and commissioning of its 5 MW power station is expected to be delayed a number of weeks. Due to delays in the delivery of key plant items required for commissioning Carbon Energys construction partner Pangea Partners has requested and has been granted an extension for the completion of the power station of up to 6 weeks.
Carbon Energy will be using this time to undertake remediation and expansion of the gas injection well capacity for the existing UCG panel, ready for commissioning the gas engines, once construction is finalised.
In addition, planning and procurement for the construction of a second UCG panel is well advanced in accordance with Carbon Energys development plans. Horizontal drilling is expected to commence in March. The 2nd
panel will provide additional gas production capability and some future operational redundancy.
As previously advised, in July last year, Carbon Energy signed an off-take agreement with Ergon Energy, a Queensland Government owned electricity provider, for electricity produced at this facility. Whilst the first revenue from the project will be slightly delayed there is no financial penalty to Carbon Energy associated with the date change.
Further updates on the construction progress will be provided as the project proceeds.
For and on behalf of the Board
Andrew Dash
Managing Director