Carbon Energy (ASX:CNX) this week completed the final step to prove its ability to operate an underground coal gasification plant in Queensland as it progresses its Blue Gum Gas Project.
Blue Gum is expected to start gas production in 2017.
The project in the Surat Basin has Queensland’s fifth largest 2P Reserves of 1,128 petajoules (1 trillion cubic feet) and is expected to initially deliver 25PJ per annum of pipeline quality gas to local industrial players from 2017.
This also has substantial upside with 3P Reserves of 5Tcf and Best Estimate (2C) Contingent Resources of 8Tcf.
Based on projected gas prices, it could deliver in excess of $4 billion in gross revenue to the company over a 25 year period and could create more than $200 million in royalties for the State.
The company is preparing to divulge a material capital raising which is expected to include a placement to sophisticated and institutional investors in Australia and/or overseas, with the ASX granting a trading halt.
The halt will last until the opening of trade on Monday 6th October 2014, or earlier if an announcement is made to the market.
News: Carbon Energy to divulge material capital raising
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