CNX - Carbon Energy

[Hatchy]

I think whilst the announcement is positive, it doesn't state much.
Sure we have production going on - but not yet able to meet commercial requirements - that's to come later on.

I do hold this stock and have high hopes - but aren't jumping the gun.

 

[Calliope]

When the panic is on, positive news that might have given the stock a kick along a few weeks ago, goes over like a lead balloon. After all while the All Ords dropped 5% yesterday, CNX dropped 16%. CXY dropped 16%.

LNC, which put out a very positive ann on Monday also dropped 16% yesterday. When it comes to losing, our stocks can beat the market three times over. Nearly all those getting out are small holders and in their panic to unload they are depressing the market

 

[baja]

Yep, its killing me. Do people think its really that bad that they are prepared to take a big loss, rather than losing the entire lot which is what they think will happen? I must admit I came close to pulling out everything this morning, but its too late now. holding....probably like an out numbered soldier bleeding profusely....sniff.....


Investors need to harden the *&^! up.

Language warning.

http://www.youtube.com/watch?v=unkIVvjZc9Y

 

[Mickel]

Yep, nice announcement on the successful production of syngas. And under budget and under time I think.

But wouldn't it be useful if CNX spelt out more clearly the economic value of this success i.e. how much product will be available, when, the approximate value and estimated earnings per share? It may not move a totally blind and hysterical market but at some stage analysts who monitor production of essential energy based products will take notice.

After all that is the basis of Linc's strategy.

I spoke to Andrew Dash (COO) at a Gold Coast seminar on 29/30 Sept. While the demonstration trial hopes to prove a commercial flow of gas (1pj per annum) none of the gas produced during the trial will be sold. It will provide the basis for a feasibility study for a methanol plant for fertiliser and explosive manufacture. This, of course, will show the economic value of the operation and will also be important for further fund raising.

He also indicated that there would be more announcements in the lead up to the feasibility study and they could look at other income stream opportunities in the short term.

So, Basilio, you will probably have to wait until after the 100 day trial for answers to those questions.

I disclose holdings.

 

[Mickel]

Market currently up around 2% to 4153 and CNX up 17% to 0.345.

Good recovery by CNX ! Will it continue ? I think it will.

 

[Mickel]

Market currently up around 2% to 4153 and CNX up 17% to 0.345.

Good recovery by CNX ! Will it continue ? I think it will.

Got my maths wrong there. ASX ALL ORDS at 4153 was up 5%.

ASX 200 currently up 4.1% at 4124 and CNX up 10% at 0.325.

 

[mexican]

Market currently up around 2% to 4153 and CNX up 17% to 0.345.

Good recovery by CNX ! Will it continue ? I think it will.

I think CNX will get another boost tomorrow with LNC's announcement. Got in today to make a quick buck, bargain IMO.

 

[ca1987]

That is IF the announcement is a positive one. It will very much go the other way IF it is a negative one.

Too late now anyway. Market has closed ^_^.

Not facts, just opinion. Do your own research.

 

[Mickel]

I think CNX will get another boost tomorrow with LNC's announcement. Got in today to make a quick buck, bargain IMO.

I agree with you Mexican.

CNX finished up 5.5c to $0.35 today which is an increase of 18.64% while the ALL ORDS was up 5.1% and S&P/ASX 200 was up 5.6%.

Although it may not increase another 18% in a day.

 

[Mickel]

CNX annual report out. Quite a bit of new information.Great time to release it with the market set for another good day on the back of the Dow Jones rise of 900+ points. CNX currently up .07 to 0.42 which is 20%. Hope it continues.

 

[andrew08]

Carbon Energy Limited (ASX:CNX) today generated the first commercial scale production volumes of underground coal gasification (UCG) syngas from its UCG plant at Bloodwood Creek, Queensland, and commenced a 100-day, A$20 million trial to demonstrate the sustainability of its commercial scale UCG syngas production.

Carbon Energy’s Chief Operating Officer Andrew Dash said the achievement represented another significant milestone in the company’s UCG syngas commercialisation program developed in conjunction with the CSIRO.

Results from the trial will be used as part of feasibility studies to be undertaken with Incitec Pivot Limited to confirm the suitability of Carbon Energy’s UCG syngas for ammonia production. The trial will be also used to study the syngas’ suitability for methanol production as outlined in the company’s recently signed Letter of Intent with LyondellBasell.

“With gas being produced at commercial volumes we have successfully demonstrated Carbon Energy’s ability to realise the value of its substantial coal tenements,” Mr Dash said. “During the 100 day trial, Carbon Energy will optimise quantity and quality, and minimise the cost of gas produced through controlled variation in the feed of air, oxygen, and steam.”

Commercial scale production was achieved by switching product gas flow from the vertical ignition well to the horizontal in-seam product well and ramping up the airflow to achieve maximum gasification rates possible with air. This air blown gasification test represents the optimum gas for production of low cost electricity.

The next step in Carbon Energy’s trial period is to use a mixture of oxygen and steam in the injection well which will demonstrate the maximum energy production rate of the panel design and the optimum syngas feedstock for ammonia, methanol and chemicals manufacture.

It is the use of oxygen and steam in the gasification process together with Carbon Energy’s unique panel design developed by the CSIRO that differentiates the company from other UCG projects currently being undertaken in Australia. It is this process and the resultant ability to economically remove CO2 from the UCG Syngas that puts Carbon Energy in the lead as a provider of clean energy and chemicals from coal.
Syngas from the 1 Petajoule (PJ) UCG panel is currently being flared.






IPL also made an announcement to the same effect.

Lets see if this brings in the interest the company deserves after LNC have been getting all the UCG news of late.

 

[Miner]

Carbon Energy Limited (ASX:CNX) today generated the first commercial scale production volumes of underground coal gasification (UCG) syngas from its UCG plant at Bloodwood Creek, Queensland, and commenced a 100-day, A$20 million trial to demonstrate the sustainability of its commercial scale UCG syngas production.

Carbon Energy’s Chief Operating Officer Andrew Dash said the achievement represented another significant milestone in the company’s UCG syngas commercialisation program developed in conjunction with the CSIRO.

Results from the trial will be used as part of feasibility studies to be undertaken with Incitec Pivot Limited to confirm the suitability of Carbon Energy’s UCG syngas for ammonia production. The trial will be also used to study the syngas’ suitability for methanol production as outlined in the company’s recently signed Letter of Intent with LyondellBasell.

“With gas being produced at commercial volumes we have successfully demonstrated Carbon Energy’s ability to realise the value of its substantial coal tenements,” Mr Dash said. “During the 100 day trial, Carbon Energy will optimise quantity and quality, and minimise the cost of gas produced through controlled variation in the feed of air, oxygen, and steam.”

Commercial scale production was achieved by switching product gas flow from the vertical ignition well to the horizontal in-seam product well and ramping up the airflow to achieve maximum gasification rates possible with air. This air blown gasification test represents the optimum gas for production of low cost electricity.

The next step in Carbon Energy’s trial period is to use a mixture of oxygen and steam in the injection well which will demonstrate the maximum energy production rate of the panel design and the optimum syngas feedstock for ammonia, methanol and chemicals manufacture.

It is the use of oxygen and steam in the gasification process together with Carbon Energy’s unique panel design developed by the CSIRO that differentiates the company from other UCG projects currently being undertaken in Australia. It is this process and the resultant ability to economically remove CO2 from the UCG Syngas that puts Carbon Energy in the lead as a provider of clean energy and chemicals from coal.
Syngas from the 1 Petajoule (PJ) UCG panel is currently being flared.



IPL also made an announcement to the same effect.

Lets see if this brings in the interest the company deserves after LNC have been getting all the UCG news of late.

Nice posting Andrew08 and thanks

Considering the code of conduct of this forum I was intrigued to see few coincidences and please correct if my observation was incorrect.

Looks like you have posted the attached information at ASF site at about 7.17 AM today

ASX published the similar information through CNX communication for public at about 8.27 AM today

I am enlisted in CNX website to receive any fresh news item and I got an email at about 9.30 AM.

Your communication receiving skills are faster than Reuter

What else do you know and share with us which ASX yet to know

Jokes apart thanks a lot for sharing the info.

 

[dandyjac]

Great video from CNX explaining the process of how they make syngas it's around 79 mb to download, well worth a look


http://www.metex.com.au/documents/ASX131108.pdf

 

[basilio]

Nice video/slide presentation from the AGM currently available. Looks as if there will be some dollars coming from the links with INCITEC and the methanol company....

 

[basilio]

CNX has dropped 11% (3 cents ) on high turnover today in a rising market.
We assume the test production program is going well. There are at least a couple of big commercialization opportunities awaiting.

Any further ideas on why the continued weakness?:

 

[Calliope]

CNX has dropped 11% (3 cents ) on high turnover today in a rising market.
We assume the test production program is going well. There are at least a couple of big commercialization opportunities awaiting.

Any further ideas on why the continued weakness?:

There is the overhanging concern that the big CSG companies will squeeze them out like they did Linc. Unlike Linc they have no Plan B

 

[basilio]

There is the overhanging concern that the big CSG companies will squeeze them out like they did Linc. Unlike Linc they have no Plan B

Ouch...! That does make sense thinking about the current politics in Queensland.

I suppose the hope is that the tie in with INCITEC and the production of ammonia based fertilizers will be enough of an incentive for a commercial project to be supported by a party with a rural component.

Another thought is that with LINC abruptly moving away there will be a rethink in the Queensland cabinet. In the current economic climate it is not a good look to needlessly piss off quality investment.

Last consideration. CSIRO is a major shareholder and has seemingly proved the technology both commercially and environmentally over the past decade. Perhaps they need to step up and be a quality supporter of this project and spell out what it can achieve.

But I can understand your initial comment on the pressure on GTL plants

 

[andrew08]

CXY has been well up from its lows last week while CNX continued its fall today.
If tenement rights were the issue i would have expected CXY to suffer also. Is anyone aware if it doesnt have any overlaps and CNX does?

 

[james99]

Great accouncement: Back to its 5 Nov of 42.5 I reckon

Carbon Energy (ASX:CNX) has entered the fourth week of its 100 day commercial scale
Underground Coal Gasification (UCG) trial at Bloodwood Creek in the Surat Basin and is pleased
to announce that all requisite performance benchmarks are being met. The trial at Bloodwood
Creek is attracting national and international attention with business and government delegations
representing interest from India, Japan and Europe visiting the site within the past two weeks.
“CNX is in the final stages of an air trial and this has confirmed that the site can produce syngas
suitable for power generation. The next stage will move onto a steam trial and, after which, a
combination of oxygen and steam will be used to produce a hydrogen-rich syngas suitable for use
as a high value chemical feedstock. The transition to oxygen and steam is expected to occur as
early as next week.”
The A$20 million UCG syngas trial, which is being undertaken at Bloodwood Creek, near Dalby in
the Surat Basin, is designed to demonstrate the sustainability and consistency of its commercial
scale UCG syngas production before moving to development of one or more potential commercial
scale production options.
The trial is being undertaken on granted MDL374 and is not dependent on any decision by the
Queensland Government in relation to the issue of overlapping tenements. “There has been a
great deal of discussion in the press recently, initiated by some aggressive lobbying by
international giant British Gas, that UCG will be locked out of the Queensland market in order to
accede to demands by CSG players for so-called certainty.” said Mr Andrew Dash, Chief
Operating Officer at CNX.
In recent weeks, the Queensland Government has reiterated its stance that it does not plan to
“pick winners” in regards to the Coal Seam Gas (CSG) and UCG industries. Mines and Energy
Minister Geoff Wilson has been quoted as saying: “We want to develop a policy position that is in
the best interests of all stakeholders.”
Page 2
Carbon Energy’s intention, once the current UCG trial is successfully completed is to pursue the
feasibility of constructing, in partnership with existing business partners, a $1 billion ammonia
plant and a separate $1 - 2 billion manufacturing facility near the Surat Basin site. These
developments would be in addition to the LNG plans as proposed by the major gas companies.
“The Queensland Government is very aware of the significant potential these developments bring
to communities in rural Queensland and the importance of UCG in making these projects happen”
said Mr Dash.
“Our focus to date has been on ensuring that Queensland business and consumers are in a
position to take advantage of the lower priced more environmentally friendly energy products that
our technology can offer. However, as an organisation, we also have a clear national and
international commercialisation strategy that we will continue to pursue and execute.”

 

[Mickel]

CNX up 4c today after 4c rise on 31/12 .Current S/P 33.5c

Announcement on 24/12 advised a uranium find in WA and today's ann is that Andrew Dash is now CEO & MD as planned last year and head office moved from Perth to Brisbane.

Perhaps the S/P rise is part eoy index fund adjustment and delayed response to the uranium find.

I am a long term holder and tipped CNX in the yearly comp. so long may the rise continue.

Happy New Year to all !! May it be a profitable one.