Carbon Energy Receives $1.1 Mn Milestone Payment for Inner Mongolia UCG Project

Carbon Energy’s UCG project in Inner Mongolia, China will now advance to the procurement and construction phase following receipt of a $1.1 million milestone payment.

This payment follows the initial payment received by the company in November 2013, Carbon Energy said Thursday.

The payment is the second instalment of a series of payments which will total $8.25 million in Service and Technology fees for Stage 1. An additional $7 million in Technology Licence Fees is also payable on completion of Stages 2 and 3.

“This is a defining moment for Carbon Energy and marks an advancement of our Inner Mongolian UCG project towards construction. It further de-risks the project and provides important funding certainty for the company,” Carbon Energy CEO Morné Engelbrecht said.

The project is being delivered in 3 stages:

• Stage 1(underway) – Construct and operate a single UCG panel from which the results will be used to confirm the site specific characterisation;
• Stage 2 – Construct and operate two additional panels to further validate the results from the first panel; and
• Stage 3 – Construct and operate a commercial scale production facility producing at least an estimated 30 PJ per annum

 Sign-up for our free weekly newsletter update via email here