breakout, page-14

Chicklittle,

Looks like it but will check with company next week, Stephen Mitchell paid up 1c or 700k. The math is fairly easy since RER closed at 7c this week....No major shareholder including IRC have sold recently either.

Apart from pilot plant approval two additional announcements to watch out for, the first patent approval and the second is any agreement to conduct pilot test or other with one of the Canadian oil sands players. The second would require the first.

If you count oil sands "oil" as conventional then its possible resource are greater than conventional oil resources. To extract oil, the sands are mined then processed at the surface, this involves huge capex and higher cost production than most convention oil projects.

A big IF for RER if the can improve this process but would be material for the company. Any agreement to test the RER CTL process would also lead to another re-rating.


"Two patents have been lodged. The first relates to the use of Water with Supercritical Properties ("WSP")
being delivered directly into a carbonaceous resource (including lignite, brown coal, black coal, oil shale
and oil sands).

The UCTL process makes use of the supercritical properties in water which is delivered from a special purpose nozzle to the resource face as a very high velocity spray.

A common feature of the process with all these forms of carbonaceous resources is that the WSP acts as a “solvent” to break the carbon molecular bonds and at the same time introduces a source of additional hydrogen to form lighter,
liquid hydrocarbons.

The process occurs "in situ" within the coal seam which thereby removes the need for high temperature and high pressure surface vessels that are expensive and utilise significant amounts of energy.

The second patent covers aspects of the UCTL plant that delivers the WSP via a special purpose nozzle to
the carbonaceous resource and recovers the products.

Interest in Oil Sands Using Above Ground Applications of the UCTL Process

As a result of a number of enquiries from overseas corporations, Regal is now also investigating certain
applications whereby the UCTL and WSP processes may be applied in above ground applications.

A number of the above ground applications have been included in the recent patent applications that have
been lodged. Such applications include the use of the process as an “up grader” of mined hydrocarbons such as the bitumen which is the early stage product of oil sands production.

This industry is very large in Canada and currently vast amounts of methane are required as a source of hydrogen to improve the flowing and refining properties of the bitumen, prior to further processing.

As well as the application of UCTL “in-situ”, Regal is pursuing this opportunity for its technology to be used in enhancing the oil quality and providing a cost saving in refining.

Regal will keep the market informed when and if such negotiations result in formal agreements being executed between parties."