http://www.*.com.au/genera//img/companies/news/carbon_energy_construction_workers_2_358_57be27fa10b9e.jpg Carbon Energy Ltd (ASX:CNX) has received an updated research report from broker APP Securities, which has maintained its Speculative Buy on the stock with a $0.09 per share target price.
Shares in CNX last traded at $0.015, providing a potential significant upside.
Carbon Energy Signs Terms to License keyseam® technology for 30MW Indonesian Power Project and announces new CEO
On August 23rd Carbon Energy Limited (CNX) announced it had signed a non-binding term sheet with Ascot Energy Pte Ltd (Ascot Energy) to license its keyseam® technology and services to develop a modular 30MW capacity syngas fuelled power project in Indonesia (Term Sheet).
Ascot Energy, a Singapore based clean energy company plans to become the leading syngas power generation company in Indonesia and South East Asia.
It proposes to replicate CNX’s Bloodwood Creek project which it believes matches the requirements for its planned projects in Indonesia.
Ascot Energy is responsible for securing permits and approvals for the project.
The granting of these approvals will trigger the commencement of the legally binding licensing and service agreements between the parties in relation to the keyseam technology.
CNX may provide paid services in order to assist Ascot Energy in securing necessary approvals.
CNX 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$10m in two tranches; US$4m when funding is secured for the project; US$6m 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.
- 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.
Executive Chairman, Chris Rawlings was encouraged by the signing of the Terms, “This agreement recognises that Carbon Energy’s keyseam technology is the preferred way to grow UCG production in a safe and environmentally responsible way.” Dr Rawlings said.
CNX also announced appointment of Mr Kerry Parker to the position of CEO and MD.
