CNX - Carbon Energy

[Mickel]

Good news from CEO with latest ASX statement today-

Power station construction on track


5MW power station construction due for
completion by end of December
Queensland Government representative to
officiate at Bloodwood Creek event
Plans for the next phase – a 20MW facility
incorporating CCS – are underway
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“In July we commenced the construction of our 5MW power plant, which we
aim to have up and operational prior to the end of December, with electricity
following into the local grid by January next year.
We set ourselves an extremely ambitious target of six months (July-
December) to disassemble the generating equipment from its Victorian
location, build the new foundations at our Queensland site, transport the
equipment, reassemble, test and commission, ready to connect to the local
electricity network.
The power station, when commissioned, will be fuelled by gas produced from
our Underground Coal Gasification (UCG) panel constructed last year and
it’s important to recognise that this will be the first power facility of its type in
Australia.
I am pleased to say we are currently on track and I have outlined the major
construction milestones below.
Due to the flurry of activity in July, getting the 5MW project up and running, we
did not have the opportunity to do any type of official launch function, so this
is now planned for 19th November. I am pleased to say that the Honourable
Michael Choi Parliamentary Secretary to the Minister for Natural Resources,
Water & Energy will be officiating at our Mid Construction Launch.
Whilst the 5MW plant is an important first phase project for Carbon Energy, we
are already well progressed with our Phase 2 project, an additional 20-25 MW
power plant, which will incorporate carbon capture and storage technology.
Front-end engineering and design (FEED) is now underway with the initial
report due in December.
This is an exciting project as it will position Carbon Energy at the forefront of
the world-wide quest for low emission energy from coal.
As you can see it’s been a busy few months and I look forward to keeping you
updated on our progress.”
Regards
Andrew
Managing Director
Andrew Dash

 

[basilio]

Great little boost to SP following the announcement of the Chilean deal. Short story is that CNX is establishing a joint venture with a Chilean mineral company to develop their coal reserves via UCG for power generation. Interesting point they make is that the returns will be between 2 and 3 times more than the Queensland project because the current cost of fuels in Chile is much higher than here. Be interested to hear other member's thoughts.

It's great to see this technology going. (Even better when one has a piece of the action.)

Link to report below. Now let's see LINC make a move.

http://www.asx.com.au/asxpdf/20091204/pdf/31mk5k3bhyhkls.pdf

 

[basilio]

Not a good day for CNX. Dropped 10c or 18% on news of delay in commissioning their power plant. And of course they have been falling steadily from 88c in January to 40c now.

Is this another buying opportunity ? Any thoughts ?

 

[springhill]

Not a good day for CNX. Dropped 10c or 18% on news of delay in commissioning their power plant. And of course they have been falling steadily from 88c in January to 40c now.

Is this another buying opportunity ? Any thoughts ?

Hi basilio, it seems Incitec Pivot.....

http://www.asx.com.au/asxpdf/20100305/pdf/31p3k4gml4ckcn.pdf

and Director, Peter Hogan seem to agree with you

http://www.asx.com.au/asxpdf/20100305/pdf/31p3clvbfsg4vt.pdf

at this point a monor delay is not enough to worry me, and i have bought at this level in the past.
Good luck!

 

[CanOz]

This is starting to look like one interesting chart! I like the big triangle, and the little reverse H & S pattern within it.



Cheers,


CanOz

 

[springhill]

It seems someone wanted a rather large slice of the CNX pie today or there is a major anamoly!

3:43:44 PM 0.600 28,909,885 17,345,931.000 XTOS
aswell as
3:46:37 PM 0.600 30,089,880 18,053,928.000 XTOS

The query is officially CNX traded all day between highs of 0.47 and lows of 0.38, why hasn't the 0.60 registered on the highs.
Why would someone pay 0.60 for a .045 share?
XTOS means a cross trade from an overseas buyer, am i correct?

 

[basilio]

Wasn 't that a surprise today!!! Amongst a tide of blood little ol cnx somehow jumps 9% from 10 foot under to just 6 foot under and some mystery overseas identity picks up 59 million shares at allegedly 15c over the current price.

Would really like to know what is happening here...Or is it the case that in the 30's CNX is just ridiculously cheap? Really really hope so...

 

[springhill]

Wasn 't that a surprise today!!! Amongst a tide of blood little ol cnx somehow jumps 9% from 10 foot under to just 6 foot under and some mystery overseas identity picks up 59 million shares at allegedly 15c over the current price.

Would really like to know what is happening here...Or is it the case that in the 30's CNX is just ridiculously cheap? Really really hope so...

Well a note of substantial initial/increased holding should come out monday, so we won't have to wait long me thinks

 

[springhill]

OK here's my theory on the 59 mill XTOS CNX purchase friday.

Here is a list below of CNX's top 20 shareholders as of the 17/3/2010;

COMMONWEALTH SCI & IN ORG 87,346,154 14.91%
INCITEC PIVOT LTD 66,554,864 11.36%
*HSBC CUSTODY NOM AUST LTD 27,999,217 4.78%
LUJETA PL 18,800,000 3.21%
*J P MORGAN NOM AUST LTD 12,175,846 2.08%
*MALLETT CW & WJ 11,766,952 2.01%
DARLEY PL 10,000,000 1.71%
HARMAN NOM PL 9,300,000 1.59%
EQUITY TTES LTD 7,082,671 1.21%
ANZ NOM LTD 7,058,619 1.20%
BRIDGELANE PL 6,600,000 1.13%
CASSA TRADING PL 6,254,429 1.07%
USB WEALTH MGNT AUST NOM 5,752,425 0.98%
CASSA TRADING PL 5,200,000 0.89%
STANLEY ROSS FRANCIS 5,000,000 0.85%
MORCOMBE DARREN 5,000,000 0.85%
NATIONAL NOM LTD 4,749,457 0.81%
COMPUTER VISIONS PL 4,500,000 0.77%
ALLEENDONAN INV PL 4,465,389 0.76%
STOCKWORK KAL PL 4,300,000 0.73%
Total: 309,906,023 52.90%

Now, CSIRO now only hold 4.8% due to selling a large chunk to Pacific Road Resources Fund.

Which only leaves Incitec Pivot (11.36%) and Pacific Road (10%) with a large enough holding to sell that many shares in 2 trades.

Pacific Road hold at an average of 40.5 cents
http://www.carbonenergy.com.au/media/pdf/investors/ASX020708.pdf
Whereas i believe IPL hold at 20 cents
http://www.carbonenergy.com.au/media/pdf/investors/ASX020708.pdf

So it is my belief one of these 2 ( I have my money on IPL, as Pacific Road have just entered the fray ) sold out at a decent profit and the buyer is possibly an overseas investment fund or A LARGE SCALE ENERGY PLAYER, as they have pillaged most of the CSG companies and now may turn their eyes to the UCG comps.

This is theory only.
Would like to hear others thoughts.

 

[basilio]

Interesting scenario springhill. And the figures and logic seem right.

It would be extremely interesting to see why Pivot, who seem to have a strong commercial interest in CNX as user of the syngas product, would suddenly sell. Do they know something?

Also curious at the premium on current share price. Whose interests is this serving?

 

[springhill]

Interesting scenario springhill. And the figures and logic seem right.

It would be extremely interesting to see why Pivot, who seem to have a strong commercial interest in CNX as user of the syngas product, would suddenly sell. Do they know something?

Also curious at the premium on current share price. Whose interests is this serving?

False alarm basilio seems it was the actual 10% acquistion of the CSIRO shares going through, interesting they have the option of picking up the other 4.8% at 93 cents.
Oh well i had fun theorising anyway

http://www.asx.com.au/asxpdf/20100510/pdf/31q7ssjy8kkd9g.pdf

 

[basilio]

Originally Posted by basilio View Post
Interesting scenario springhill. And the figures and logic seem right.

It would be extremely interesting to see why Pivot, who seem to have a strong commercial interest in CNX as user of the syngas product, would suddenly sell. Do they know something?

Also curious at the premium on current share price. Whose interests is this serving?

False alarm basilio seems it was the actual 10% acquistion of the CSIRO shares going through, interesting they have the option of picking up the other 4.8% at 93 cents.
Oh well i had fun theorising anyway

Yep just the Pacific crossver being completed.

But I can't help being disturbed that today when (almost) every other share that had been belted is making some sort of recovery CNX keeps on falling. Seems to be saying there is very little support even at what seem to be quite low prices...

Would really like to see mangagment give some positive guidance to where CNX is going. Or perhaps there isn't sufficient to say ??

 

[Dink]

Courier Mail 19 May 2010

Surat Basin farmers call for moratorium on coal seam gas mining
Brian Williams

"MORE than 500 farmers who attended a protest meeting called for the government to place a moratorium on coal seam gas mining.

Growers lined up one kilometre of farm machinery at a paddock at Cecil Plains west of Toowoomba in a show of strength to demonstrate they are capable of blocking mining company access to their land.

The farmers face up to 40,000 gas wells being drilled across some of the state’s best food-producing land.

Protest organiser Dave Armstrong said famers were gearing up for the fight of their lives. “What other choice do we have?” Mr Armstrong asked. “They have put us in a corner.”

Surat Basin farmers say mining companies in their district, two hours north-west of Brisbane, are putting their livelihoods, and in some cases even their homes, at risk."

Anyone in the area have an update on what the outcome from the protest was... if there was one? Any specific ideas on the relationship that CNX has with the farmers. From my discussions with someone in Chinchilla he stated that the general sentiment was positive amongst many in the town but he is not a farmer.

 

[Dink]

Good day today. Improved volume and a rise in the share price with no news. Anyone have any ideas as to whether this is due to something? The only thing I can think of is that the drill rig has arrived at Bloodwood Creek...

 

[berbouy]

yes,pleasing to see the rise today, dink-a good percentage gain not to be sneezed at.no idea why, except perhaps a few good days on the all ords, and the dow , may have increased risk appetite a little?anyway , hope to see cnx back in the 40,s soon, and can build from there.time will tell, but dyor.
enjoy your weekend everybody

 

[springhill]

Today i will be exiting CNX completely, there are 2 reasons for this.

Firstly, after watching the CSG v UGC battle, it has become apparent (not just overnight, but gradually over time) that UGC is the b@stard child. CSG is powering ahead with takeovers, while Coal Gasification companies flounder.

Secondly, CXY's shutdown has given me the yips, whether for valid reasons or not, the industry can be tainted with this brush. Underground burning is not established, and i don't see overwhelming support for something politicians, and the general public for that matter, can put a bad spin on. Burning coal is politically 'dirty' whether above ground, or below. Whereas the traditional burning of coal to produce energy, or in the use of material production is established.

For these reasons the risk outweighs the reward in my mind, considering i have already made good money on CNX.
I wish them and their holders well, and hope for both their sakes i am wrong.

 

[Mickel]

Good news for the UCG industry with these DERM (Dept of Environment and Resource Management) press releases on 11 August 2010 -

Cougar Energy CXY
Landholder bore restrictions removed near Kingaroy UCG plant.

http://www.derm.qld.gov.au/media-roo...esting-11.html

Carbon Energy.
Kogan Creek water tests indicate no concerns.

http://www.derm.qld.gov.au/media-roo...-creek-11.html

 

[Mickel]

More good news from Carbon Energy-

Carbon Energy is pleased to announce that its partner in Chile, Antofagasta Minerals (“Antofagasta”), has obtained Environmental Approval for the first stage of the parties’ joint Underground Coal Gasification (“UCG”) project in Chile.


http://www.carbonenergy.com.au/imag...pproval obtained for ucg project in chile.pdf

CNX finished up 3c to $0.375

 

[Mickel]

Good day for CNX today - up 06c (15%) to 45.5c on the back of the following announcement-

"Bloodwood Creek Environmental Update
Carbon Energy (ASX: CNX) advises that the Queensland Government Department of Environment and Resource Management (DERM) last night informed Carbon Energy that it has accepted the Company’s environmental report as addressing the requirements of the Environmental Evaluation notice issued on 21 July 2010 and additional information notice issued on 21 September 2010.
The evaluation related specifically to containment of surface water on site, a common situation faced by many industries and not specifically Underground Coal Gasification (UCG), and at no time were underground activities or groundwater impacted by the incident.
As part of the evaluation, a comprehensive soil testing program was undertaken and has been independently assessed by a tier 1 Environmental Consultancy which confirmed that there was no ongoing effects or environmental harm.
As part of its report, the Company detailed the engineering and operating changes it has established on site to ensure that any reoccurrence is mitigated and has already put in place additional environmental controls.
DERM has further advised that, prior to gasification commencing for the Company’s UCG Panel 2, it intends to amend some of the environmental conditions for the site to reflect the outcome of the environmental report and the Company’s proposed mitigation measures.
The Company will hold meetings with DERM representatives in Brisbane today and onsite later this week to finalise these conditions and establish a date for commissioning of UCG Panel 2.
The Company welcomes the news that its environmental report has been accepted and will work cooperatively with DERM to expedite any changes to environmental conditions arising from the report to ensure that commissioning of UCG Panel 2 can proceed as soon as possible.

For and on behalf of the Board

Andrew Dash
Managing Director"

http://imagesignal.comsec.com.au/asxdata/20101117/pdf/01121622.pdf

Hopefully it will be only a week or so before CNX can begin the commercial operation of UCG for power generation. They have a $2M per yr power contract.
I hold CNX.

 

[Mickel]

Well, so much for only a week or so before they recommence.

However there is good news today from the Minister Kate Jones-

" Minister for Climate Change and Sustainability
The Honourable Kate Jones

Friday, February 11, 2011

Carbon’s UCG trial to recommence with stricter conditions

The Department of Environment and Resource Management (DERM) has today issued amended Environmental Authorities to Carbon Energy allowing them to restart their Underground Coal Gasification (UCG) trial at Kogan."

But not just yet-

"
The new conditions include:

• Improved infrastructure to ensure better storage capacity and management of process water (such as the construction of additional tanks and other storage infrastructure)

• Improved underground monitoring through the installation of additional groundwater monitoring networks

• Improved risk management practices and more stringent notification requirements

“The company has already implemented some of the new conditions, but until all conditions and requirements under the amended authorities are met the company cannot lawfully recommence operations,” he said.

“Our officers will conduct another on-site inspection prior to the trial recommencing to ensure they have fulfilled these requirements.

“The formal investigation to determine if any legal action should be taken against the company relating to this incident continues.”

Mr Bradley said once the company complies with the new requirements, the department is confident it can operate in a safe and sustainable way."

http://www.cabinet.qld.gov.au/mms/StatementDisplaySingle.aspx?id=73612