mou in victoria, page-19

Any chance of a link/reference on Shatskaya? All I can find is
http://www.osti.gov/energycitations/product.biblio.jsp?osti_id=5322290
whose abstract says it ran for about 17 years and “may have been the most effective of the Soviet UCG stations”.

On the terms of the JV – I was going off the reverse takeover doc p19. $750k on UCG investigations earns CXY the 70%. Thereafter each party finances their own share (or gets diluted). I presume the project looks enticing enough that COK’ll maintain their interest – it would certainly look bad if they ducked out.
Checking again, I see COK can maintain a carried interest – we are not told how large, but it must be well less than 30% else they’d have no incentive to pay their way. So either of us might be right. But even on your figures, 1 part in 4 further dilution to get to perhaps 90% of $5.1m project cashflow with much proved about the project to pave the way for a bigger value-added next step is not a bad outcome. And I expect the fundraising to be at a higher price after initial trial burn has derisked any concerns that the site may be unsuitable.

“The Chinchilla burn went for three years with continual monitoring of the groundwater”
Indeed it did but:
a) The world and especially the parties concerned have learnt from that experience so there is less cause for concern that pollution may become apparent a long time into the project.
b) It did it at 70MWe production levels – so if Kingaroy was to do similar it can be powering the proposed 40MWe in the meantime!
I’m sure they will monitor the groundwater for the life of the project, but it shouldn’t take years to be acceptably confident. If one’s to be overly picky, Chinchilla is in a similar boat - there are ‘only’ 3 years of data gathered and that under different burn initiation and process control regimes.

Fair point on business personnel at the helm. But business is as business does. CVs are a good start, but as things go on you have to judge them on what they do. You’ve seen my list of what I don’t like about Linc, much of which boils down to doubting their business capabilities. Whilst Cougar looks like steady progress towards the goal. Mr Walker may not have the business CV but for now he looks to me to be walking the walk in a sensible manner. The risks are real, IMHO this is not approaching 10% of portfolio stuff, but fancying a toehold in UCG I don’t see many attractive options.

“LNC ... have a little more cash”
Cash was not one of my concerns with LNC till recently. Have you ever known a company that wasn’t seriously cash and credit strapped set up an equity line of credit? I haven’t come across it much, but it has been universally bad news when I have.