cgv_cxy comparisons

Hi All,

Below is thread I've just posted in the CXY thread responding to a comparison between CGV and CXY. I thought you'd be interest in it.

This is an interesting post Sungar.

Cougar has been listed for nearly 3 years so they should be a long way ahead of CGV. Infact, Walker and Blinderman have been trying to commercialise UCG since they formed Linc back in 1998. 12 years later and they are still trying to commercialise UCG.

Anothering interesting fact is that Ergo, Cougars technology partner, are yet to scale up any pilot plant they've been associated with to commercial production. The first was Linc that never got commercialise, Majuba in South Africa is still in pilot mode and now their doing another pilot plant. You would have thought they would have progressed way pass the pilot stage after 12 years.

In relation to CGV's drilling announcement and move to Victoria if you read both announcements correctly you would have posted correctly that:-

In the announcement re. Victoria CGV was going to continue to develop its Queensland assets hence the drilling program;

the drilling is not being done at Biloela, it is a Biloela drilling company CGV have contracted to do the drilling;

as per the drilling ann. all of the proposed drilling is on EPC 1506 which is not a designated CGV UCG tenement, there is only 4 holes proposed for EPC1508 which could be to confirm a potential UCG location for later use;

from enquiries made they have nominated all their sites for mineral "f" in february as required by the QLD UCG policy.

So firstly, can I suggest you get your facts correct before posting.

Secondly, as mentioned above this is Walker and Ergo's second attempt to do UCG, they couldn't do it under Linc so they got axed and bailed out of Linc.

It's taken Walker/Ergo 3 years since merging onto the ASX to get to a 2nd pilot plant, if you're saying CGV should be where Cougar is having only been listed on the ASX for about 5 months, then you've got a totally un-realistic view on things and should be taken seriously.

Thirdly, the Ergon Energy announcement was for Ergon to supply Cougar the power it needs to run the UCG facility, its not an off-take agreement for Cougar to sell Ergon power, although there is a vague mentioned of "working together on a potential off-take" for Ergon to buy Cougars power. This is hardly an off-take agreement in any sense.

Finally, if you want to compare experience on the board and management, CGV have started out with a team with over 100+ experience (Green - UCG, Harkins - UCG/gas technology, Matino - Coal Seam Gas, Coutts - Chemical Engineers). It hasn't taken them 3 years to put a solid team together, CGV did it at the beginning.

I hold positions in all but one UCG stock (LNC) but did initially invest in LNC till I and also have an engineering background in coal and gas. IMO I wouldn't be running off at the mouth casting to many dispersions on any UCG player, even CGV who are only starting out, and here is why. None of them are yet to commercialise UCG!

IMO the first company to commercialise UCG for the smallest capex wins the race, this is why I like CGV. $35m to build a small commercial UCG plant rather than a $600m power station or a $1b gas to liquids plant is smart.

I have an interest in CXY because I'm hedging my bet Walker and Ergo may actually get it right the second time around. Although I can't understand why the market is excitied about CXY when its just another pilot plant.

I liked CNX when it had the arrangement to sell the gas to Eneabba Gas but that's fallen over and I'm waiting to see what they do.

I got out from LNC because Bond hasn't delevered much other than a $200m+ experiement which still isn't producing any diesel that a BP or others would buy.

One of these companies needs to commercialise UCG and the fact CGV is looking to do it via a small $35m commercial plant with an off-take for the gas is smarter that hundred million dollar and billion dollar projects that will take a very long time to produce income. CGV's approach to commercialisation is mauch smarter than any of the other UCG players in the industry and they all want to take notice.