The Rudd government agenda to develop liquid transport fuels...

The Rudd government agenda to develop liquid transport fuels from coal and gas was launched recently and reported in the Australian (Feb 26th).

My broker has advised that Chevron & Sasol proposed a gas to liquids project in WA in 2001. Sasol currently operate a coal to liquids project in South Africa and are building a plant in China. Also that London listed Spitfire Oil to commence 18 month feasibility study on coal to liquids project on Salmon Gums lignite deposit.

Spitfire currently has a market cap of approx GBP60M and resource according to article of 500MT.

Blackham has a market cap fully diluted of approx $29M and a JORC lignite resource of 668MT which is subject to a 70%(Blackham)/30% JV with Wesfarmers.

Blackham will be advised in the coming months on the outcome of an auction for a substantial coal deposit based in the Russian Federation which if successful Blackham will obtain a 60% interest. Details of the deposit to date have not been released to the market.

Disclose that I bought BLK shares this week between 66-70c because I think there will be some upside soon.


Regards Rosee