short term catalyst, page-4

Boris:
I am surprised to hear your views that DERM will not approve UCG. Do you have any info supporting this or is it your gut feeling?

When I was at the Bloodwood Creek site I was told that after the 5MW plant has been commissioned, they have plans for a 25mw steam turbine plant there. Also, major shareholder Incitec Pivot got involved so they could build a fertiliser plant there. If DERM does not approve full exploitation of the site, Incitec Pivot will have done a lot of $$$.

Given the public mood against CSG, once all governments of Australia, both state and federal, really understand what UCG has to offer, I believe that they will start to pay attention to the technology through desperate need.

We have signed long term contracts to supply CSG to other countries, yet we may need a gas supply for our own electricity production after the CO2 tax comes in. Our CSG supply may not be sufficient. Renewable sources will take several years to come up to the level of supply to enable us to switch mostly to these.

I believe that UCG will be the technology and we may have no other options.

These are my gut feelings supported by what I have read and what I saw at the Bloodwood Creek site.