(MENAFN- ProactiveInvestors)
( OTCQX:CNXAY) continues to progress its proposed Blue Gum Gas Project in the Surat Basin Queensland which has the fifth largest Proved and Probable (2P) Reserve of 1128 petajoules in the state.
This includes the Department of Environment and Heritage Protection’s findings and recommendations on a key report to the Department of Natural Resources and Mines.
The DEHP’s report on the company’s Decommissioning Report and Rehabilitation Plan for the Bloodwood Creek underground coal gasification trial is a significant step toward progressing its plans to commence the Environmental Impact Study for Blue Gum.
The Company continues to work constructively with the key departments and Ministerial Offices following the appointment of a new minority Labor Government to provide necessary briefings on its technology and the Blue Gum Gas Project.
“We remain in close contact with the new government as they take the time to consider DEHP’s recommendations on our scientifically proven and unique technology” managing director Morné Engelbrecht.
“The Blue Gum Gas Project will deliver at least 1000 new jobs during construction and also be part of saving hundreds of manufacturing jobs.
“We have proven that our technology developed in conjunction with the CSIRO has superior environmental abilities above any other technology of its kind. This has been achieved over a period of six years and under the intense scrutiny of the Queensland Government.”
Queensland Engagement
Following the appointment of the new State Government during the March 2015 quarter met with representatives from both DEHP and DNRM.
These discussions were a continuation of engagement discussions with the bureaucracy but also the beginning of the engagement process with the newly appointed minority Labor Government.
Communications have focused around briefings on ’s keyseam technology its environmental credentials and the proposed Blue Gum Gas Project.
is currently awaiting advice from DNRM as to its recommendations and whether it can commence the EIS for the Blue Gum Gas Project.
The company has prepared an Initial Advice Statement (IAS) in preparation for the next steps in commercialising the Blue Gum Gas Project.
All l conditions and questions arising from the Independent Scientific Panel report have been addressed and the findings positively reviewed by independent experts.
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.
International Opportunities
The company has also increased its attention on securing further licensing and joint venture opportunities globally.
This is based on the increased confidence in its keyseam technology on the back if the demonstrated and scientifically assessed Bloodwood Creek trial results.
“The environmental results we have achieved in Queensland have promoted significant interest from Asia and Europe where we are focusing our efforts to maintain the Company as a leader in the field” Engelbrecht added.
Cash Management
During the March 2015 quarter the company secured a $1.2 million loan facility with Macquarie Bank Limited during the quarter and drew down on the facility.
This provides working capital prior to receipt of the FY2015 research and development tax rebate.
Following the result of the Queensland Government election held at the end of January 2015 the
company implemented its strategy to mitigate the impact of the delay in the Queensland Government review process on its cash reserves.
This included a voluntary reduction in executive salary costs and directors fees reduction in staff costs generally through redundancies limited use of external contractors and the continued enforcement of a cost conscious culture.
These cost reduction strategies continue on into the next quarter.
had approximately $3 million of cash as at 31st March 2015.
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