bigdog
Retired many years ago
- Joined
- 19 July 2006
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Posting have been few lately and the SP has been disappointing since mid July!
ASX ann this morning
MEE 8:27 AM CARBON ENERGY QUANTIFIES SIGNIFICANT COMMERCIAL OPTIONS
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00759932
CARBON ENERGY QUANTIFIES SIGNIFICANT COMMERCIAL DEVELOPMENT OPTIONS
Metex Resources Ltd (ASX:MEE) is pleased to advise that the joint venture company CARBON ENERGY PTY LTD (CEPL, a joint venture with CSIRO) has successfully concluded the financial and technical evaluation of the Bloodwood Creek site located approximately 300km west of Brisbane, and is to commence Australia’s largest trial for the production of synthetic gas (syngas) from the underground gasification of coal.
The demonstration plant is budgeted to cost approximately $19 million and is expected to be sited at Bloodwood Creek where CEPL has defined an initial Inferred Resource of 45 million tonnes of high-quality coal sufficient to support the construction of a 1Pj (petajoule) per annum single Underground Coal Gas (“UCG”) syngas module (Figure 1). The module will incorporate a gasification design developed by CEPL, and it is expected that further modules will be added as the trial progresses. Construction of the plant is anticipated to commence early in 2008 with initial gasification expected to commence in July 2008.
The financial and technical evaluation has highlighted significant commercial outcomes that may be achievable if the objectives of the gasification trial are reached. They range from the direct sale of syngas for power generation through to syngas providing the feedstock for the production of liquid fuels using proven technology. Implementing multiples of the standard UCG module to be used in this trial should allow gas production to be scaled up to specific project requirements.
Future potential development options include;
1. An upgrade to a 9 UCG module array providing syngas for direct sale to an established gas fired power plant (estimated capital cost of A$87 million) is anticipated to generate an EBIT of $28 million per year.
2. An upgrade to a 9 UCG module array providing syngas to a 130Mw power plant (estimated capital cost of approximately A$210 million) is anticipated to generate an EBIT of $62 million per year.
3. An upgrade to a 39 UCG module array providing syngas as a feedstock for a CTL (coal to liquids) plant producing 8,000 barrels of diesel and liquids per day (estimated capital cost of approximately A$658 million) is anticipated to generate an EBIT of $288 million per year.
Utilization of UCG for coal gasification is expected to result in significant reductions in capital costs and operating costs in comparison to the emerging surface gasification projects that are currently being evaluated in Australia and elsewhere in the world, in addition to being able to efficiently extract the carbon dioxide (CO2) from the syngas stream for CO2 sequestration purposes, thereby aiding in the reduction of greenhouse emissions by over 40% compared to conventional coal fired power plants.
CEPL and its shareholders are presently progressing financing and development options for fast tracking of the initial UCG Trial.
ASX ann this morning
MEE 8:27 AM CARBON ENERGY QUANTIFIES SIGNIFICANT COMMERCIAL OPTIONS
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00759932
CARBON ENERGY QUANTIFIES SIGNIFICANT COMMERCIAL DEVELOPMENT OPTIONS
Metex Resources Ltd (ASX:MEE) is pleased to advise that the joint venture company CARBON ENERGY PTY LTD (CEPL, a joint venture with CSIRO) has successfully concluded the financial and technical evaluation of the Bloodwood Creek site located approximately 300km west of Brisbane, and is to commence Australia’s largest trial for the production of synthetic gas (syngas) from the underground gasification of coal.
The demonstration plant is budgeted to cost approximately $19 million and is expected to be sited at Bloodwood Creek where CEPL has defined an initial Inferred Resource of 45 million tonnes of high-quality coal sufficient to support the construction of a 1Pj (petajoule) per annum single Underground Coal Gas (“UCG”) syngas module (Figure 1). The module will incorporate a gasification design developed by CEPL, and it is expected that further modules will be added as the trial progresses. Construction of the plant is anticipated to commence early in 2008 with initial gasification expected to commence in July 2008.
The financial and technical evaluation has highlighted significant commercial outcomes that may be achievable if the objectives of the gasification trial are reached. They range from the direct sale of syngas for power generation through to syngas providing the feedstock for the production of liquid fuels using proven technology. Implementing multiples of the standard UCG module to be used in this trial should allow gas production to be scaled up to specific project requirements.
Future potential development options include;
1. An upgrade to a 9 UCG module array providing syngas for direct sale to an established gas fired power plant (estimated capital cost of A$87 million) is anticipated to generate an EBIT of $28 million per year.
2. An upgrade to a 9 UCG module array providing syngas to a 130Mw power plant (estimated capital cost of approximately A$210 million) is anticipated to generate an EBIT of $62 million per year.
3. An upgrade to a 39 UCG module array providing syngas as a feedstock for a CTL (coal to liquids) plant producing 8,000 barrels of diesel and liquids per day (estimated capital cost of approximately A$658 million) is anticipated to generate an EBIT of $288 million per year.
Utilization of UCG for coal gasification is expected to result in significant reductions in capital costs and operating costs in comparison to the emerging surface gasification projects that are currently being evaluated in Australia and elsewhere in the world, in addition to being able to efficiently extract the carbon dioxide (CO2) from the syngas stream for CO2 sequestration purposes, thereby aiding in the reduction of greenhouse emissions by over 40% compared to conventional coal fired power plants.
CEPL and its shareholders are presently progressing financing and development options for fast tracking of the initial UCG Trial.
(10%). It then still has the uranium play. My guess is that it may sell or farm out some of those if its is to focus on UGC. Lets say a total NTA for those three resource sets of 180 mil. (94 + 85 and the balance uranium).
