(MENAFN- ProactiveInvestors)
() has secured a $1.2 million loan facility with Macquarie Bank ().
The company's Blue Gum Gas Project will be the first commercial UCG project in Australia and unlock the fifth largest Proved and Probable (2P) Reserve of 1128 petajoules (PJ) in Queensland.
The financing provides a maximum 10 month secured term loan facility to be retired from the anticipated FY2015 Australian Taxation Office Research and Development Tax Rebate within this term.
The company is intending to lodge a rebate application for an estimated $2 million with the ATO in the first quarter of FY2016 following finalisation of its annual financial statements.
It is anticipated that a rebate for R&D expenditure incurred during 2014-15 will be received from the ATO before the end of the second quarter in FY2016.
is waiting on the Queensland Government to approve the Rehabilitation Plan for the Bloodwood Creek underground coal gasification trial.
The plan together with the Decommissioning Report submitted in August 2014 demonstrates ’s gas production technology is safe effective highly controlled and minimises impact on groundwater volumes and quality.
Once the plan is considered and approved the company will move ahead with commercialising the Blue Gum Gas Project.
Blue Gum Gas Project
Blue Gum has the potential to produce 25PJ per annum of pipeline quality natural gas by 2017.
This could help address the expected rise in domestic gas demand during the next five to ten years.
Increasing LNG exports from the three LNG projects in Gladstone will take away gas currently used by Australian manufacturers and consumers. Efficient low cost gas production will become an investment priority to ensure no disruption to local manufacturers.
had $3.5 million in cash and deposits of call as of 31st December 2014.
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