This is an extract from PCE now CXY AGM presentation, if this...

This is an extract from PCE now CXY AGM presentation, if this doesn't give the traders goose bumps nothing will. Read the complete presentation. 27 NOV 2006

PINNACLE VRB LIMITED 2006 AGM
MANAGING DIRECTOR’S REPORT
Pinnacle VRB is entering an exciting new stage in its corporate history, with the
development of two power-related technologies which may ultimate prove to have
synergies in their application – the production of cheap base-load power using fuel gas
from the process of Underground Coal Gasification (UCG), and the commercialization of
an efficient power storage system using the VRB battery.
In the last few months, the Company has undergone a significant reconstruction with the
acquisition in September this year of 100% of Cougar Energy Pty Ltd, and 50% of
Cougar Energy (UK) Ltd. The focus of these two Companies is on the development of
energy projects in Australia and internationally using the UCG process. This process
enables coal to be converted in-situ into a low calorific value, low cost gas which is
suitable for use as a fuel for power generation, or can be converted into diesel fuel or
other petro-chemical products. In recognition of the significance of this acquisition, the
Directors have recommended that the name of the Company be changed to Cougar
Energy Ltd.
The injection of new funds and management expertise associated with this acquisition has
enabled the Directors to set in place a strategy for growth of the Company over the next
few years. This strategy involves the development of projects using both the UCG
process and the Company’s existing VRB technology, and includes the following:
o Accessing strategic coal leases which may be suited to the UCG process
o Planning and executing the development of an initial demonstration power project
in Australia using fuel from the UCG process
o Development and expansion of similar projects within Australia and overseas
o Preparation of a business plan for the commercial development of power projects
in Australia using the VRB battery system, and an investigation of the possible
use of the battery system in UCG power projects
Since completion of the Cougar acquisition, the Directors have identified the potential for
a commercial UCG project on the Kingaroy coal lease which forms part of the joint
venture agreement negotiated with Metallica Minerals Ltd covering seven Exploration
Permits for Coal (EPC) in Queensland. As a result, the Company has commissioned
consultants to undertake three technical studies relevant to this potential project, relating
to geological evaluation of existing drill data, hydrogeological evaluation of regional
groundwater, and to preliminary engineering feasibility. These studies will form the
basis for later detailed project design.
UCG PROCESS DESCRIPTION
• Air or oxygen/steam injected down first well, with linkage
to second well via coal seam
• Ignition at base of first well, with coal combustion
• Hot gaseous products of combustion travel to second well,
causing gasification reactions in coal seam
• Product gas (at 300oC) recovered from second well
• Product gas consists of N2 , CH4, H2, CO and CO2
• Gas calorific value 12% (air) - 25% (oxygen) of natural
gas
• Cooling in surface pipes drops out water and HC
byproducts – adds 15% to revenue
• ADVANTAGES
• Low land area usage– 40MW project for 20 years uses
500m x 500m area of coal seam at depth
• No large water demand – water produced as byproduct
• No large water recovery and disposal as for CSM
• Mimimal above ground disturbance
• Pipework movable during on-going operations
• Rapid rehabilitationGas is cleaned and sent to gas turbine or GTL plant