cheap coal stock-ucg as well!

This Coal exploration program should commence soon in QLD.

Take note!

For a company with $6m cash and an EV of $3m bucks with a UCG coal lease of 150mt already and a UCG project in the US and a possible TLA with Essar India, its as cheap as chips imo!


Australia ? A Focus on Coal

CGE holds eight granted coal tenements covering 3,280 km2, and another 21 competing applications covering 2,976km2. Of these, the Company has identified three priority drilling targets as follows.

EPC1748 is located in the Surat Basin, Queensland. This tenement was previously under
competing application and was recently awarded to CGE with formal grant expected in mid
2011. This tenement covers an area of 360 km2 and has an extensive database of
exploration wells which include wireline logs over coal packages in the Walloon Coal
Measures. Of interest to CGE is the shallowest Macalister seam, with a typical depth of
approximately 500m and seam thickness of approximately 5 meters. This provides a
potential underground mining opportunity, similar to current and planned underground mining
in NSW. The Macalister seam is a thermal coal seam which is currently mined elsewhere in
the Surat Basin. Gas exploration well data has indicated several intersections of coal with a
high concentration in the southern part of the tenement along with the north east of the
tenement. The south east corner of the tenement should only require a minimal cored hole
exploration program to obtain a JORC resource. A rail line from Dalby crosses the tenement
and the tenement also has an extensive network of both sealed and unsealed roads in place
which will provide good infrastructure access. The main Dalby rail line accesses the Port of
Brisbane and also the Wondoan rail line, where there are plans to extend the line from
Wandoan to Gladstone for greater port access. CGE plans a three to four cored holed
exploration program in the south west corner of the well to generate a JORC inferred
resource in that part of the tenement. The western 30% of the tenement falls under an issued
Petroleum License. This exploration program is expected to cost $1.5 million. CGE regards
this program as a low risk exploration play.

CGE has two further priority coal targets. The first of these are the adjoining EPC 1864 and
EPC 1751 located in the Bowen Basin, Queensland. This play is primarily targeting Blair
Athol formation coals at depths of approximately 500 meters which may be of PCI quality in
this area. The secondary targets are the Reids Dome Beds equivalents. These coals have
yet to be drill tested as they are overlain by up to 200m of basalt cover, however, present a
high risk play with substantial upside. CGE sees this as another potential underground mining opportunity.

The third coal target is a lignite deposit in EL5720 in the Gippsland Basin. A reviewof
existing borehole data has identified a 15m thick lignite seam over an area of 15km2 at
depths from 30 to 60 meters. This lignite may be suitable for conventional coal mining and
also has surface gasification potential. CGE sees this as a potential ?cleaner coal? opportunity utilizing advanced above ground coal gasification technology, and/or a potential export mining opportunity subject to Government approvals.