You are right, I forgot that the increase to 400 million fpos...

You are right, I forgot that the increase to 400 million fpos was from the paying of the 2 cent partly paids in addition to the capital raising. Therefore fully diluted there are 676,568,417 shares.

“However much of the world’s UCG (in particular Angren) is in lignite, not higher ranked coals.” - Yes UCG is better suited to lower ranked coals; however some lignite coal UCG projects have failed. There are risks with UCG. The biggest risk is environmental. The difference between LNC and CXY is that they have demonstrated that Chinchilla can sustain a UCG operation without contaminating the ground water. It will be years before CXY definitively demonstrates this at Kingaroy.

“Aiming straight at CTL is a rather different kettle of fish. High profile but many more chances for slipping up.” – LNC is not building the 20,000 bpd production facility straight away; they are building the demonstration plant first. There is a risk that it won’t work, but you know what they say about risk vs reward. Another risk is that the price of oil will fall to levels that it will not be economically viable for CTL. With the price of oil at US$77 per barrel, this may not be an issue.

I guess CXY does not need a lot of money in the next 12 months but then again there won’t be much coming in either. The $2.5 million they have will last them until the exercise of the options, giving CXY $9,700,000 but also adding another 194,000,000 shares on issue.

Assuming that Kingaroy does support a successful UCG burn and assuming a financier is willing to lend 60% of the capex for the 40MW demonstration plant, CXY needs to raise $22 million through equity, take away the $9.7 million that leaves $12,300,000 to raise. If the share price is at current levels and the capital raising is at 7 cents that will be another 175 million shares issued, a debt of $33 million and about 851 million shares.

What effect do you think this credit crunch will have on these small spec stocks?