Carbon Energy Limited (ASX:CNX) Key Phase 1 Deliverables Achieved In Chile
Brisbane, June 1, 2011 AEST (ABN Newswire) - Carbon Energy Limited (ASX:CNX) (PINK:CNXAF) is pleased to announce that the Company's joint project with Mulpun Energy, a subsidiary of Antofagasta Minerals S.A., has reached a major development milestone with sign off by both parties following the achievement of key Phase 1 deliverables. The project will now move forward with the formalisation of the Joint Venture Company.
Key Phase 1 Deliverables Achieved
- Design plan, work plan and budget development.
- Hydrological Model development.
- Site selection for the UCG Trial.
- Land acquisition.
- Environmental Approval for the UCG Trial.
- Preliminary market study for the commercial application of UCG syngas for the production of power and natural gas.
Carbon Energy's Managing Director Mr Andrew Dash commented, "This is a significant achievement for both Carbon Energy and Mulpun Energy and I am very pleased with the progress of the project to date. We are obviously keen to push on with Phase 2 which will focus on the design of the above ground plant, construction and operation of the trial project which is expected to be operational early next year.
I have now been to Chile on a number of occasions and I am continually impressed by the market and project development opportunity for Carbon Energy, as energy demand is forecast to grow at 6-7% per annum over the next 5 to 10 years compounded by a supply shortage of domestically sourced energy. Chile is highly exposed to increases in the already high price of imported diesel, natural gas, LNG and coal.
Carbon Energy Representatives will be heading to Chile within the next two weeks for meetings with Antofagasta Senior Management and part of the discussions will be focused on the acceleration of a commercial scale energy project based on UCG syngas."
Further project updates will be provided over the coming months as other key milestones are achieved.
About Carbon Energy Limited
Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is building a gas business, utilising its unique keyseam technology.
The Company is committed to providing industrial gas users with an affordable and secure source of high quality feedstock, as gas prices remain strong, through increased demand across our key markets.
Carbon Energy is the only company to complete a full-lifecycle, commercial scalable underground gasification trial. The Company's keyseam technology has successfully accomplished all the recommendations outlined by the Queensland government's Independent Scientific Panel (ISP) which included intense, independent environmental scrutiny.
Carbon Energy Limited