which way will it go., page-6

Hi Alan,

Im not sure where you have been focussing ur research, but like you said, eddie and tech have provided all the company info you need.

I would direct you to start reading about the potential of CBM gas in QLD from here.

Call Pricewaterhouse and try and get access to their report, check state regulatory websites, do searches for CBM gas in QLD (& globally and Australia).

We know tat ECU has the gas, has the experienced personnel, now all thats left to test is the economic viability, and we test this by checking the potential of its products.

I've done this and am mroe than comfortable that CBM gas has a big part to play in the future of energy provision in Australia.

Couple of points (of top of my head, rest is at work):

- QLD govt is easing the path for industy players interested in gas to obtain tenements against those interested in the coal

- R & D tax concessions are being provided, in QLD, to CBM companies

- QLD govt has introduced a 13% energy certificate, the name escapes me but its a postive development for CBM

- competition between natural gas players is increasing (henc their stagnant shareprices) and CBM is a viable alternative to natural gas

- one big cost for CBM gas is haulage, so the closer to infrastructure the better...ECU Is ideally placed.

- there is an assumption that gas mixed with water is bad, however this is incorrect in the case of CBM gas. CBM gas is trapped in low rank coals and is trapped by waterpressure above the coals. IF there was no water, the gas would have seeped out long ago. So no water no gas. They have to coexist in this case. Once the water is pumped out, the gas will flow of its own accord or with pressurised pumping beneath the coal bed. ECU eventually will use its own gas to run the entire operation, so very low cost, and also very automated process.

- CBM gas has been selected as the preferred source for the Townsville Power Station, which indicated how highly the QLD govt rate CBM.

I will post more on CBM on monday.

Cdchi1