Another thing to look at now is that power generation from UCG might become a really good option for companies who have acreage in areas with non-mineable coal deposits both in Oz & overseas.
In Oz, CNX has a good alliance with IPL who picked up 10.5% or 55M shares last May. They have a MOU with a very large coalfield operator in India in the Singareni coalfields. Given the MOU/deals that Arrow Energy has been invovled in India with ONGC & in Indonesia, think CNX (with CSIRO tag) are well placed.
Worth noting is this trial of 1 ton : 20GJ : 5.5MW, can sustain burn up rate of 80-90t/day & a Max of 150t/day. So that figure of 20GJ they mentioned has a upside to it.
Also remember their current reserves are only 100MT or 1tcf gas equivalent. CNX intends to prove this to b around 500 MT. IMO they have proved that UCG can generate energy apprx 20 times more then conventianal CBM gas & could well b the way to go in the future.
cheers
CNX Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
