IPCC- Fossil fuels, page-4

People are starting to take note:

Research Note RESEARCH NOTE – PATERSONS SECURITIES LIMITED

All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility or liability on any account whatsoever on the part of this firm or any member or employee thereof.

CARBON ENERGY LIMITED GROWING POTENTIAL TO ADDRESS FUTURE GAS SHORTAGES Investment Highlights • Carbon Energy (CNX) is a global leader in Underground Coal Gasification (UCG). It has gone through a direction change over the last 6 – 12 months where development of a full-scale commercial facility in Queensland has gathered pace and the development of another commercial plant at the Haoqin Coal Field in Inner Mongolia has stalled. For both projects to advance further, developments out of CNX’s control need to occur. In Queensland, the State Government needs to allow CNX to commence the approvals process and in China, a PCM company needs to be appointed by its Chinese partner. We believe that achieving the next milestone will be a significant catalyst for the Company. We are maintaining our Speculative Buy recommendation with an indicative price target of $0.10 - $0.12/share. • Lodgement of plans with the Queensland Government - CNX has now submitted a decommissioning report and a rehabilitation plan with the Queensland Government. These reports demonstrate that CNX can operate its Keyseam UCG technology with minimal impact on the environment and also decommission and rehabilitate the completed panels. This means that CNX has now proven that it can produce gas, decommission and rehabilitate in an environmentally responsible manner. We believe that CNX’s Blue Gum Project can provide a new affordable, quality gas resource at a time when gas supplies on the East Coast of Australia are going to be extremely tight. • Opportunistic SPP – CNX raised $2.5m in a recent Share Purchase Plan (SPP). The SPP was well supported by existing shareholders and the funds raised will be applied to the completing the Government’s UCG review process and progressing the Blue Gum Gas Project, business development, general working capital, and costs of the issue. It will also place the Company in a better position to pursue off-take and/or investment partners in the Project. • Recent doubling of gas reserves - A large range of technical data was obtained by an independent party which routinely certifies coal seam gas assets throughout Australia and worldwide. This was used to evaluate the commercial nature of the resource. Other factors including the current policy regime and the proximity to existing infrastructure were also considered. This culminated in a significant increase in its Proved and Probable (2P) Surat Basin gas Reserves to 1,128 petajoule (PJ) or 1 trillion cubic feet (Tcf) of natural gas equivalent or 188 million barrels of oil equivalent (mmboe). This is the fifth largest 2P gas Reserve in Queensland.