in page 4,
Jinhong JV
The Company and the JV are actively continuing their efforts in currently reviewing three potential sites currently considered suitable for the development of the first commercial demonstration project in China. These three project areas are:
• Xinjiang- South Bridge – with a 913 km2 coal lease area, containing approximately 11.4 billion tonne coal deposit
• Yangquan (Shanxi Province) – with a 139 km2 mining lease area;
and • Inner Mongolia – with a 55 km2 mining lease area held by Fengfeng Energy Group.
The focus during the coming quarter will be to finalise the selection of the preferred site for the development of the first commercial demonstration project in China, the completion of any required commercial negotiations for site access, and the commencement of detailed design and planning works.
Indonesia
Subject to the parties entering into legally binding licensing and servicing agreements, Carbon Energy will receive the following revenue and royalties as set out in the Term Sheet:
• Ascot Energy to pay a licence fee for each project of US$10 million in two tranches:
o US$4 million when funding is secured for the project;
and o US$6 million on performance criteria being met in accordance with the licence and services agreements;
• A royalty payment of production of US$0.30 per MMBTU of syngas;
and • Pre-project services fees.
The project timeline estimates up to 18 months to secure permits and a further 18 months from then to achieve ignition of the first panel. Further updates will be provided in the coming months.
China UCG Research Centre (CUMT or Centre)
The China National Administration for Coal Geology has agreed to join the Centre as a Founding Member. The funding part seems resolved.
The news flow should be good over the next few weeks IMHO
CNX Price at posting:
52.5¢ Sentiment: Buy Disclosure: Held
