Carbon Energy Limited - Bloodwood Creek Site Update: No Material Affect At Site

10:18 AEST Jan 6, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Brisbane, Australia (ABN Newswire) - Carbon Energy Limited (ASX: CNX) (PINK: CNXAF) is pleased to release the following announcement:

Due to a number of phone calls received from concerned shareholders regarding the recent flooding which is affecting Queensland's regional Western Downs area, the Company provides this update on the status of our site at Bloodwood Creek.

The Company is able to advise that flooding has not materially affected our site. The site is located between Dalby and Chinchilla and all site personnel are safe and well.

Small logistical issues have affected site accessibility following local road closures which has resulted in some delays transporting people and resources to and from the site. Personnel at Bloodwood Creek worked throughout the Christmas and New Year period to maintain and secure our facilities.

The Company has an onsite accommodation facility that has adequate supplies of power, fuel, water and food. We were fortunate to have been able to assist some of our local neighbours who have had difficulties at this time by providing accommodation.

I would like to acknowledge the excellent work over this period undertaken by our personnel and thank them for their professional response and attention to safety during this unfortunate regional event.


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.

Carbon Energy is building an international portfolio of coal assets, suitable for UCG with close proximity to markets.




Contact:

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