UPDATE - Wildhorse Energy gearing up for new chapter in...

UPDATE - Wildhorse Energy gearing up for new chapter in Hungary
By Jamie Nimmo January 14 2014, 2:32pm

The changes mean UCG will now fall under the existing mining law in Hungary and will be regulated as such

Shares in Wildhorse Energy (LON:WHE) powered 20% higher after it hailed regulatory changes in Hungary that will benefit underground coal gasification (UCG) projects.

The Hungarian Parliament has given the green light to the modification of the mining law which now includes UCG specific regulations, setting out a legal framework for the development of such projects.
It means UCG will now fall under the existing mining law and will be regulated as such.

The royalty for UCG has been set at 2% of the value of the utilised mineral resource.

Wildhorse managing director Matt Swinney said: “We welcome this news, representing the first legislation of its kind in Central Europe, and are confident that this regulation marks a new chapter of UCG application in Hungary and in the region as we continue to consider various development paths for our projects.

“This is an important component for a company looking to establish a European UCG operation, capitalising on the highly attractive energy market dynamics inherent in the region.”
He added that Wildhorse, which owns the Mecsek Hills UCG project, is a “firm proponent” of the economic benefits of UCG and welcomed Hungary’s move to adopt the “potentially revolutionary technology”.

The company confirmed it is still in non-binding talks with a third party and it is dependent on a deal to advance its UCG projects.

The shares jumped 22% to two-month highs of 1.99p ~ 3.6c

Rumor has it that WHE that Linc Energy is the third party.
Linc Energy announced only few months ago that they are in "active discussions" with a third party in Poland and Hungary.

With legislation now in place, we might hear more very soon...

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