SXP sapex limited

sapex has black coal rather than brown coal

  1. 949 Posts.
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    This is Mr Lincoln Augustus, first second cousin og Holymagiman

    1.
    Firstly, I enclose a classification of coal from Wikipedia

    TYPES OF COAL

    As geological processes apply pressure to dead biotic matter over time, under suitable conditions it is transformed successively into

    * Peat, considered to be a precursor of coal. It has industrial importance as a fuel in some countries, for example, Ireland and Finland.
    * Lignite, also referred to as brown coal, is the lowest rank of coal and used almost exclusively as fuel for steam-electric power generation. Jet is a compact form of lignite that is sometimes polished and has been used as an ornamental stone since the Iron Age.
    * Sub-bituminous coal, whose properties range from those of lignite to those of bituminous coal and are used primarily as fuel for steam-electric power generation. Additionally, it is an important source of light aromatic hydrocarbons for the chemical synthesis industry.
    * Bituminous coal, a dense mineral, black but sometimes dark brown, often with well-defined bands of bright and dull material, used primarily as fuel in steam-electric power generation, with substantial quantities also used for heat and power applications in manufacturing and to make coke.
    * Anthracite, the highest rank; a harder, glossy, black coal used primarily for residential and commercial space heating. It may be divided further in to metamorphically altered bituminous coal and petrified oil, as from the deposits in Pennsylvania.
    * Graphite, technically the highest rank, but difficult to ignite and is not so commonly used as fuel: it is mostly used in pencils and, when powdered, as a lubricant.

    The classification of coal is generally based on the content of volatiles. However, the exact classification varies between countries.

    2.
    Now, what type of coal does Sapex have, brown (no good) or black(good)?

    Below is part of a report put out by Eastern Star Gas yesterday.

    Holymagiman has always been under the impression that the Sapex coal was lignite(brown coal) which is an inferior , high moisture content coal.

    Holymagiman notes that Mr David Casey from Eastern Star Gas says that the Sapex coal is black coal, which is coal of a much higher quality that can be used for power generation and to make coke:



    3.
    corporatefile.com.au

    "Can you update your other exploration tenements, including the Arckaringa Basin licences (ESG earning 50%) in South Australia?

    MD David Casey
    "Our main additional tenements in NSW are the coal seam gas targets PEL 433 and 434, also in the Gunnedah Basin. There’s a lot more work required to realise the potential in both permits. We undertook a corehole program last year with mixed results, but we identified an area with good methane composition in the Hoskissons seam. We will explore additional areas that have the requisite coal thickness, depth and permeability.

    "At Arckaringa, we have a stake in 27,000 square kilometres, which is roughly a third of the Basin and it contains most of the prospective coal tenements. We will spend
    around $1-1.2 million to undertake a three corehole program to earn 25%.

    "Importantly, the Arckaringa coal is BLACK coal, which is the next step in the coalification process from brown coal. We have found evidence of high permeability in the coal and some gas. It is still early to ascertain whether we have somethin valuable, but there’s evidence to potentially support a project.


    "The Arckaringa Basin is also surrounded by many existing and proposed mining projects, all of which require energy or have increasing energy requirements. Coal seam gas would be an ideal energy source."


    4.
    Holymagiman draws your attention to this fact: Sapex has over 5 billion tons of black coal, apart from its potential for coal bed methane production, underground coal gassification and oil exploration and production.

    And it is being sold for $100million.

    It appears to Holymagiman that something is very wrong and the minority shareholders in Sapex are being totally short changed in this deal.

    Yours sincerely
    MLA
 
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