🕐30.10.09 - 06:05 Uhr
Eneabba confirms significant stand-alone fuel energy projects in Western Australia’s Mid West
ENEABBA GAS LIMITED: ASX / MEDIA RELEASE
30 October 2009
Eneabba confirms significant stand-alone fuel energy projects in Western
Australias Mid West
Highlights:
Independent analysis confirms substantial JORC compliant coal resource of
194 million tonnes in the first of the Companys ten Western Australia Mid
West tenements;
This analysis confirms coal contains insitu energy of approximately 3,037
PJ of energy, which is equivalent to the power needs of the Companys
proposed Centauri-1 Power Station, operating at a level of 365 MW energy
delivery, for over 100 years; and
Fuel energy to be extracted using UCG technology, which is already in use
world-wide.
Australian energy company Eneabba Gas Limited (ASX: ENB) ("EGL" or "the
Company") can now confirm, what it believes to be, one of the most
significant stand-alone energy projects in Western Australias ("WA") Mid
West region ("Mid West").
Independent analysis by Xenith Consulting Pty Ltd ("Xenith"), now confirms
that the first of the Companys ten Sargon Tenements contains 3,037 PJ of
insitu energy.
Xenith is regarded as a coal resource specialist with
experience in classifying coal resources both in Australia and worldwide.
The final JORC resource result in this section of the Sargon Tenements (see
Figure 1) was determined by Xenith, having increased by 20% on the Maiden
JORC result as reported on 24 September 2009;
On the basis of its analysis and understanding of the nature of coal,
Xenith has determined the total estimated energy (in PJ) in this section of
the Sargon Tenements.
It has found that, as the Sargon coal is running at
an average of 16MJ/kg, the in-situ resource (averaging some 20% of ash)
would yield 194 million tonnes of coal, translating to 3,037 PJ of energy.
The Company is aware that in-situ coal in various operations within
Australia and overseas, suitable for UCG, has yielded a potential range of
recoverable energy of some 50.0% - 58.0% plus of the insitu energy.
>From its evaluation, Xenith concluded (ASX 24 September 2009): "The large
size of the overall Sargon group tenements when combined with the
encouraging exploration
results from tenement E 70/2758 suggest that the Mid West area could host a
number of coal mineralisation targets suitable for Underground Coal
Gasification ("UCG") technology."
The Company believes the confirmation of this substantial coal resource and
the overwhelming size of the energy potential of this project, is likely to
represent a key milestone in the Companys elevation to a major Australian
energy producer and should also underpin the timely development of a range
of Mid West resources projects.
"We recognise that, even at such an early stage, the energy potential of
our project is enormous.
To put this into context, the amount of energy
that has been delineated by the independent consultants would power our
proposed Centauri-1 Power Station of 365 MW for over 100 years at full
capacity.
In addition to this, the Xenith Report attached also advises that
the western area adjacent to the 2009 exploration target zone has a high
likelihood of further potential resource and it is recommended that further
exploration be conducted to target this area " Eneabba Gas Managing
Director Mr Mark Babidge said.
"To place some perspective on these JORC results and standardised energy
estimate the publicly announced details of the Gorgon Project under the
Barrow Island Act (WA) 2003 State Agreement" reserves 2,000 PJ total, for
the Domgas market over the life of the Gorgon Project" Mr Babidge added.
Centauri-1 Power Station
Since 2005, the Company, and its technical consultants, have diligently
progressed plans for its proposed initial 168MW Centauri 1 gas-fired Power
Station, located on Company‐owned land eight kilometres east of
Dongara, and about 365 kms north of Perth in Mid West WA.
Generation
capacity for the Centauri 1 Power Station can easily be increased to 365MW
under the proposed plants existing technical specifications.
In the past twelve months the Company has stepped up its activities
regarding the development of its Centauri 1 Power Station.
To date it is
the ONLY energy company in the Mid West to receive all the various
Government approvals needed for the rapid development of this vital piece
of infrastructure, including Planning Approval approval from the Shire of
Irwin, the Environmental Protection Authority (EPA) and the Department of
Industry and Resources (DoIR).
The Company is also the ONLY holder of an
Economic Regulation Authority (ERA) generation licence in the Mid West for
projects planned to support Oakajee Deep Water Port.
The Company is also the only energy company in the Mid West to have
finalised all technical aspects associated with its Centauri 1 Power
Station, and has also reached agreement to acquire four GE LM 6000
gas‐fired turbines.
This allows construction to commence on site
immediately.
The Company expects its Centauri 1 Power Station to be
operational in approximately 14 months, or as soon as take or pay
contracts
for Mid West iron ore customers are confirmed.
These activities have, at all times, centred on the objective of becoming
the leading supplier of cost effective, low carbon emission, "clean" energy
to companies and organisations wishing to develop major mining and
industrial projects in Western Australias rapidly developing Mid West, not
limited to, but likely to include, a
range of iron-ore mining companies developing projects in the Mid West.
The Company strongly believes the recent announcements regarding the
allocation of energy contracts by Synergy confirm the inability of others
to demonstrate the capability to have project readiness in the Mid West.
"All the building blocks are in place to ensure that Centauri 1Power
Station is able to meet the needs of the Mid West companies, not least all
necessary approvals, finalised technical plans and an MoU for a gas supply
agreement with a dominant operator in UCG development.
More than that, we
are also able to bring our power station on line within any timeframe
required from any end users, at a cost that is significantly less than any
current or potential energy competitors" Mr Babidge said.
"We are also talking about real technologies, not technologies that may
be in effect in the next 10‐15 years as we strongly believe that
these are of no practical use to mining companies wanting to get projects
up and running within the next five years.
The miners will not only have
the ability of local generation, but power at much reduced price to assist
in their projects economic benefit, thereby supporting the State
Governments desire and vision for the Oakajee Port to commence" Mr Babidge
added.
Unique Location
The Companys substantial energy resource and Centauri 1 Power Station are
uniquely placed, both being adjacent to a major gas pipeline (Dampier
Bunbury Natural Gas Pipeline access and the Parmelia pipeline runs through
the Companys freehold land), rail (250 metres from the Companys property
boundary), major State
highways (Brand & Midland Highways border the Companys property), port
facilities (Geraldton port and proposed Oakajee deep water port 65kms and
85 kms respectively), power (within 18 kms of the existing 132 kV line),
and within delivery proximity of mining resource projects.
Companys Environmental Credentials
The Company is a Greenhouse Challenge Plus Member, which means that, in
addition to the strong technical and economic credentials of the Centauri-1
Power Station, the Company has also focussed on ensuring the Centauri 1
Power Station will be a carbon neutral site.
This has an initial major
offset via the conservation of
some 3,000 acres of remnant bush, which has been confirmed by the
Greenhouse Office to offset some 30.5 MW equivalent of carbon credits.
The full Xenith JORC Report # 4 is attached to this Media Release.
To view this release online use this link:
http://esp.gewru.com/download/files/12414/976690/Eneabba%20confirms%20Fuel%20energy%20source%20in%20WA%20mid%20West.pdf
Mark Babidge
Managing Director
(08) 9321 0099
For further information please contact
David Tasker, Group Director, Investor Relations
PPR
Tel (08) 9388 0944
Mob 0433 112 936
EM
P.O.
Box 772
West Perth, Western Australia 6872
Phone: +618 9321 0099
Fax: +618 9321 0299
www.eneabbagas.com.au
ABN 69 107 385 884
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