Carbon Energy (ASX:CNX, OTCQX:CNXAY) today announced an 83% increase in the Company’s proved and probable (2P) Underground Coal Gasification (UCG) gas Reserves at its Bloodwood Creek site. Carbon Energy has the potential to become a major gas provider in the Queensland market.
The Company’s 2P UCG gas Reserve has increased from 743PJ to 1,362 PJ and ranks Carbon Energy as potentially one of the largest gas producers in Queensland.This reserve confirms the scale of the opportunity UCG presents as a new source to meet growing energy demands on the eastern seaboard.
Carbon Energy’s CEO Morné Engelbrecht said, "This is an important upgrade which positions Carbon Energy as the leader of the Australian Underground Coal Gasification industry. Carbon Energy is poised to potentially play a key role in meeting the emerging shortfall in gas supply for Eastern Australia."
"Carbon Energy’s unique keyseam® UCG technology delivers up to an estimated 20 times more energy from an area than other gas extraction techniques."
"The commercial potential of our proven technology is understood by our foreign joint venture partners in China and South America. We are on the cusp of international commercialisation of UCG technology that we have proven in Queensland" he said.
South East Queensland’s coal rich Surat Basin is approximately 110,000 km and reportedly has 28,422 PJ in identified 2P reserves1 .Carbon Energy’s 1,362 PJ 2P UCG gas Reserve is from one of five identified coal seam areas in the Company’s Mineral Development Licence (MDL) 3742 which covers approximately 30 km. This equates to more than 33 million GJ per km2 of recoverable energy. This further represents approximately 5% of available 2P Reserves in the Surat Basin from an area representing 0.03% of the total Surat Basin.
Carbon Energy’s 2P UCG gas Reserve was independently certified by MHA
Petroleum Consultants (MHA) (report attached). Carbon Energy’s keyseam® UCG technology was initially developed by the CSIRO, a shareholder in the Company.
Mr Engelbrecht said, "We are pleased with the progress of the rehabilitation plans and are confident that a UCG regulatory regime can be established in Queensland which will allow Carbon Energy to commence the commercialisation of this existing UCG gas Reserve."