mostly good news

Hey come on guys and gals this report is actually excellent news if you leave out the blockage issue.

No. 1 we get to eliminate this problem for their production wells which will now have a lower cost and will be quicker to build. There is nothing like experience to learn from and no other way to learn at times!

Len said - "Although this is a very short set back in our timing at Kingaroy, it is an opportunity to implement well design changes that will enhance and accelerate our future production capability. We anticipate that the new well design will reduce installation time and cost, significant elements in planning longer-term operations.

OK so they saw the problem coming however due to this uncharted situation they implemented the wrong strategy on their test run. That is what a test run is for - to iron out the bugs. The result is a huge improvement to overall design and the development time table!

Now to the gas quality as "proof of suitability for Kingaroy as a UCG driven power station"... and I quote from the report: "The product gas was of high quality (calorific value in the range 4.8 and 7.1 MJ/m3), with stable gas composition, temperature, pressure and flow rates, thus confirming the suitability of the coal deposit for application of the UCG technology."

FANTASTIC NEWS!!!!!!!!!!!!!!!

Now WE ARE ALSO TOLD the PFS on stage 1 full commercialization is underway and on track with some sort of confirmation from the QLD Gov't?? Great news and two smaller stage "proof of concept" and "proof of commercial concept (30 Mw)" are "under consideration" which translates to - appears feasible now doing the DD and costings.

This is fantastic news and the market discounts this over a short delay due to short term thinking.

My final note - from the report also: "Senior management continues to work on the optimal funding options for the Power Plant, with investor presentations and preliminary discussions being conducted in Australia, Asia, North America and Europe."

Again this is going to be the the key to dilution or not - and the evolution of the future business model as it too becomes proven along with SP rises for the CAT.

Keep your chin held high and take advantage to top up or re-enter which ever your case may be.

Cheers,
CW