Carbon Energy: Underground Coal Gasification Panel 2 Drilling Completed At Bloodwood Creek

09:25 AEST Aug 25, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Brisbane, Australia (ABN Newswire) - Carbon Energy (ASX: CNX) is pleased to advise that the drilling program for UCG Panel 2 has been successfully completed.

Work to complete the above ground pipe work and associated facilities is currently underway and is anticipated to be finished by the end of August.

Drilling for UCG Panel 3 is progressing with both the vertical initiation well and the horizontal injection well having been completed. Drilling has commenced on the production well. The drilling program for Panel 3 is on track and is scheduled to be complete by the end of August.

Commencement of operations for Panel 2 is subject to Queensland Department of Environment and Resource Management (DERM)'s review of the Company's Environmental Evaluation and notice from DERM that the Company may proceed. It is anticipated that DERM's review of the Environmental Evaluation will be completed by 17th September 2010.

Immediately upon approval, Panel 2 will be initiated. Once consistent gas production is established the progressive commissioning of the four reciprocating gas engines installed on site will commence.

Further updates on the progress of the 5 MW power station and construction of Panels 2 and 3 will be provided as the project proceeds.

For the complete Carbon Energy announcement including photos, please view the following link:
http://www.abnnewswire.net/media/en/docs/63586-ASX-CNX-223160.pdf


About Carbon Energy Limited:

Carbon Energy's purpose is to produce clean energy and chemicals feedstock from Underground Coal Gasification (UCG) syngas.

Carbon Energy's unique approach to UCG and syngas production produces a low cost option for capturing CO2 making it a leader in clean coal technology.

Carbon Energy's ambition is for syngas to become the preferred feedstock for producing clean coal power stations, an alternative to oil-based fuel, agribusiness products (fertilisers and explosives), polyolefin products (such as plastics) and allowing for economic carbon capture.

Carbon Energy's technological advantage comes from its association with CSIRO including world class geotechnical, hydrological and gasification modelling capabilities.

Located at the hub of the Surat Basin's energy infrastructure, Carbon Energy's energy resources are perfectly positioned to provide the basis for future energy, industrial and agricultural chemicals, and liquid fuels for export and to the growing local industrial hub.

Contact:

Andrew Dash
Managing Director
Carbon Energy Limited
Tel: +61-7-3337-9944
http://www.carbonenergy.com.au