My last post on CNX was nearly 2 years ago, but I did flag the possibility of CNX conducting successful operations overseas, rather than concentrating in Australia as the technology has never really recovered here since the hiccup involving Cougar that reverberated through the sector.
Whilst not investing too much of my time in revisiting CNX due to the dilution of shares which has taken it out of the range of my investment potential, it does seem that CNX is drawing income from foreign sources for their technology.
Foreign payments incoming
http://www.asx.com.au/asxpdf/20140313/pdf/42nc0d95nzwrct.pdf
http://www.asx.com.au/asxpdf/20140218/pdf/42mscbgykw4qsh.pdf
Further money incoming from a local agreement
http://www.asx.com.au/asxpdf/20140120/pdf/42m67x4jb87z7z.pdf
KEY EVENTS FOR THE DECEMBER PERIOD
• The Queensland Government released the final report and findings of the Independent Scientific Panel (ISP) including the acceptance of the overarching recommendations by the ISP. Carbon Energy welcomed the pathway to commercialisation being set for the underground coal gasification (UCG) industry in Queensland.
• The Company received a cash injection totalling $12.6 million raised from a fully subscribed Rights Issue totalling $7.8 million, a private placement of $1 million with Holder East Capital Limited, and receipt of a $3.78 million research and development (R&D) tax incentive rebate from the Australian Taxation Office relating to eligible FY13 R&D expenditure.
• The Company repaid in full the outstanding balance of $3 million on the debt facility with Credit Suisse.
• MHA Petroleum Consultants independently certified an 83% increase in Carbon Energy’s 2P UCG syngas Reserve to 1,362PJ1
• Carbon Energy signed a Memorandum of Understanding (MOU) to become the UCG technology partner to the Delmo Group for a commercial scale Argentinean UCG Project, intended to supply electricity via an offtake agreement to the Argentinean Government for which negotiations are underway.
• Carbon Energy achieved a first for the Company by receiving the first instalment payment for the Inner Mongolia UCG Project. This major milestone represents the first ever commercialisation of Carbon Energy’s keyseam UCG technology.
• The Company began engineering design services with a view to successfully commissioning the Process Characterisation Panel (PCP) for the Inner Mongolia UCG Project.
• PCF Capital Group was appointed as marketing agents to monetise Carbon Energy’s coal assets in the Surat Basin, Queensland.
• Carbon Energy signed an MOU to potentially acquire 100% of the Mulpun UCG Project in Chile subject to securing a joint venture funding partner and the acceptance of the commercial terms of the acquisition by project partner, Antofagasta Minerals S.A.
• Carbon Energy relinquished its rights to explore tenements in Wyoming and North Dakota/Montana (USA).
• The Company agreed to the discharge of the mortgage in relation to mining tenements in the Laverton area in return for a payment of $600,000 to the Company from Focus Minerals Limited (formerly Crescent Gold Limited).
Once a market darling, many a year ago, has the Australian market judged UCG too harshly?