under the radar?

From 27/4

The Company advises that the PFS (preliminary feasibility study) for the construction of the Kingaroy Power Plant continues uninterrupted with the Board scheduled to take decisions in June on the configuration of the building of Stage 1.

Following the receipt of confirmation from the Queensland Government, a first stage of up to 30MW of power generation is now being considered by the Company as part of the pilot trial.

Following completion of the PFS, a decision will also be taken on the installation of small scale gas generation plant prior to Stage 1 to provide electricity to the site and to sell excess power into the grid, for which transmission line access is already in place.

From 2/6

Work on the Pre-feasibility Study is nearing completion. Preliminary assessments are consistent with the project economics and returns from previous modelling work for the proposed power station. The Company anticipates being able to announce recommendations on power project options by early July 2010.


Must admit, I missed the above points when they were announced ... looks like the Qld Govt has actually (conditionally?) approved a 30 MW plant at Kingaroy under terms of the pilot program! No waiting till the Qld Govt announces its revised UCG Policy in 2011/12. Early July is when we'll find out what form Stage 1 Kingaroy will take.

Also, much has happened since the Company announced they intended to raise a total of $30 mill by the end of 2010. At the time Kingaroy, Wandoan and Victoria were on the horizon.

Now there is also Eneabba and Mongolia, both with supposedly willing UCG syngas appication partners. In the case of Mongolia, CDIC raises the funds. In the case of Eneabba I suspect others have to raise at least the power station funds. Cougar still requires funds for exploration and trial burns in WA.

I like that the Cougar business model lends itself to project technology and/or investment partners ... Cougar end up with long term syngas supply contracts and a sensible portion of many pies.

I still think the investment community will need to see evidence of:

a) technology success at Kingaroy, and

b) a clever, partner funded project deal formalised and/or

c) a synergistic partner on the register contributing to ongoing development.

Many balls in the air at present ... can they be caught in an orderly manner?

Dex