Since our last newsletter back in February Carbon Energy (ASX:CNX) has made significant progress in confirming our strategic direction and delivering on this strategy. In late March, this year, we advised the market that we had achieved Proof of Concept of our UCG technology. As a result we decided to reduce costs at our Bloodwood Creek operations while we progress regulatory certainty in Queensland. This allows us to focus our company resources into further developing the business and our technology. Our key initiatives to come out of the strategic review include:

• Ensuring UCG is the core of our business
• Continuing our global search for commercial scale UCG projects
• Reducing costs & seeking regulatory certainty in Queensland
• Maximising our existing 2P syngas reserve
• Revising our conventional coal resources & utilising funding to further enhance our UCG technology

Subsequently we have been able to make some immediate wins on these objectives such as the Heads of Agreement with China�s second largest coal company Shanxi Sanyuan Coal and last month�s announcement of a 4 to 8 billion tonne conventional coal JORC Exploration Target.

The effort we have been driving into the business is beginning to show with these initiatives and this momentum continuing into the new financial year and beyond.

Andrew Dash

Managing Director

To understand the latest developments watch Andrew Dash, Managing Director as he discusses the strong achievements of the last Quarter.

Find out More

Last month we announced conventional coal Exploration Target of between 4 and 8 billion tonnes after having commenced evaluating the full extent of our coal leases in the Surat Basin which totals 1400km2.

This means if we are able to monetise even a small proportion of the Target we will be able to put further development capital into our UCG technology.

Find out more.

Chile: Activities at Carbon Energy�s UCG project location in Mulpun, Chile continue to proceed with our partner Antofagasta Minerals. Last quarter saw the completion of drilling for the extensive ground water monitoring program.

USA: We have appointed a third party to provide further independent resource certification in North America. Pre-exploration planning continues while work on building a resource and geological model of preferred sites has commenced.

For the most up to date progress on our Projects please read the latest Quarterly Report
Find out more.

Carbon Energy Limited
PO Box 2118, Toowong DC, QLD 4066 Australia telephone: +61 7 3337 9909 | fax: +61 7 3337 9945
www.carbonenergy.com.au