I find it somehow very reassuring that CNX has strong ties with...

I find it somehow very reassuring that CNX has strong ties with mainly the CSIRO and to a lesser extent, zerogen.

Zerogen, being owned by the Queensland Government, has an agreement with CNX to transport sequestered co2 to deliver on its carbon capture and storage plans. As I understand it, this will begin only when the 20MW power station is up and running.

The CSIRO, being a statutory authority of the Australian Government, still owns 5% of CNX, with pacific roads having the option to buy this 5% at a price of 90 cents per share.

Linc Energy, on the other hand, has the probable fortune of selling its coal assets for over $1 bil and will therefore spend much of this money within the Australian economy attempting to get its GTL plans off the ground, not to mention pay hefty taxes when the sale goes through.

My point is this, I feel that it is possible that CXY has been unfairly picked on. There is definitely something fishy about the announcement of contaminants in their bore water. But it seems to me that having little economic clout (re, LNC) and no government ties (re, CNX) has left poor CXY out in the cold and without many friends.

Generally I am not a conspiracy theorist, but if the readings of the lab tests have been tampered with, or were in some way incorrect and allowed to be announced to the market before absolute certainty, then one would have a very tough time explaing it away.

So, where does this leave CNX?

It is highly possible that CXY is so tied up with trying to prove its environmental credentials (and the costs that go with it - think lost time, wages, employment of extra staff, possible fines etc) that CNX remains the only viable company in Queensland ready to open a UCG plant. (Note that LNC has its eyes on South Australia and recently confirmed that its pilot plant in Queensland was for the continued trialling of the technology only)


This has to be a good thing for CNX in the medium term.

(might I add I own all three but biggest holding is with CNX)

Just some thoughts.