Ann: Coal Sale - Two leases sold for $3m , page-30

A capital raising is inevitible, just can't see who'd invest given the current status of the company.

Well, first thing is technology, for what ever reason they haven't managed an agreement on this with anyone, why is beyond me given their potential overseas interest and ultimately, Queensland will come back on line once the Bligh government is axed at the next QLD state election.

This is going to go a long way to them becoming a propoer UCG company rather than a pretend UCG company.

LBY's management have promoted they have a number of high potential traditional coal assets, if the current deal is the best they can do in this market, than the rest of their traditional coal assets must be crap.

They need to put together a proper business plan on what they are going to do and if land banking is their business they need to stop pretending to be a UCG company. There is nothing of substance in any of their communications that says this is what our business plan is, this is how we are going to develop our assets and this is how we are going to fund them. Obviously their original plans with CNX and CGV have failed and unless they come up with a technology tie for outside Queensland. Any deal they potentially do with CNX for Galilee won't happen till after 2012 which is the earliest the QLD will determine UCG's future in QLD. Given the State Election is in that year they may pass the buck the the incoming LNP party, which is good as I reckon they'll give it a run. But that's atleast 2 years away. LBY needs to focus elsewhere.

Technology and a good business plan will go a long way to allowing the company to raise some money a lot easier than they will now.

It's not rocket science.