Carbon Energy (CNX)

Shares / Stock Code

CNX

Stock Exchange / Sharemarket

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Carbon Energy (CNX) is an emerging energy company that aims to produce clean energy and chemical feedstock from UCG syngas. CNX’s business model is underpinned by energy-related initiatives in coal and uranium, and an exposure to a sound gold business. CNX’s key projects are located in the Surat and Carnarvon basins and NE Goldfield region, in Western Australia. Through its associate Magma Metals Ltd, CNX is evaluating a new platinum discovery in Ontario, Canada. The company was listed on Australian Stock Market on 21 December, 1993. Investors can trade Carbon Energy shares on the Australian Stock Exchange (ASX).

In late 2007 an agreement was reached with the CSIRO and Others whereby Metex (now Carbon Energy Ltd - CARBON ENERGY) acquired the balance of shares in CEOPL in return for approximately $2.4 million (net) in cash and 103.561 million shares. Following this transaction CSIRO holds approximately 17.8% of CARBON ENERGY's issued capital. CEOPL's previous collaborative arrangements regarding ongoing intellectual property rights to UCG and ongoing service agreements with CSIRO continue with CARBON ENERGY.

The Company is included by Standards and Poor's in the S&P/ASX300. In May 2008 Carbon Energy committed to the development and construction of our first commercial scale, oxygen injected Underground Coal Gasification (UCG) trial based on a standard 1 petajoule (PJ) per year UCG syngas module at its BloodwoodCreek site in Queensland thereby positioning itself as a significant new force in Queensland's energy industry.

One of the principal objectives of the Company has been to pursue and develop strategic alliances involving other commodities outside of its core interests of minerals exploration and mine development. This strategy has resulted in the successful listing of Elkedra Diamonds, Zambezi Resources and more recently Magma Metals.

In May 2008, the Company announced a Memorandum of Understanding (MOU) with Incitec Pivot Limited (IPL) whereby IPL subscribed for 55 million shares in CARBON ENERGY, and IPL gains exclusive global rights to the use of Carbon Energy's UCG technology for ammonia and ammonia derived product manufacture, with CARBON ENERGY having an entitlement to joint venture participation in respect of ammonia production. IPL currently holds 11.2% of CARBON ENERGY's issued capital.