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Scoping Study Findings - Denison Gas Project, Queensland


29th June 2010

Click here to see full announcement

Liberty Resources Limited (“Liberty”) (ASX: LBY) is pleased to announce that it has completed a nine month scoping study to validate the economics of an Underground Coal Gasification (‘UCG’) syngas project in the Denison Trough in Queensland (‘Project’). The positive results from the study were based on 19,783 PJ of recoverable syngas produced at a cost of $1.79/GJ. Assuming $3.00/GJ sale price for syngas, the model shows Project revenues exceeding A$59 billion.  Further studies are being completed on the Denison and elsewhere.

Syngas Project Operating Cashflow has been estimated at $24 billion using a 25.3 GJ/tonne Coal Heating Value (HV) and $11.8billion using 20GJ/tonne HV. Both are considered more than adequate to cover future capital and development costs.

The following table summarises the Project’s key study findings:

 

** Alternate potential product, based on Clean Coal Technology South Africa - Air blown Syncrude production from Syngas – subsequent report to be tabled.

Further opportunities to upgrade the saleable products and hence revenues, as well as reduce operating and capital costs, have been identified.

Location

The Denison Project is located in central Queensland (EPC 1435) near 25.5 degrees south and 148.4 degrees east longitude. A gas pipeline into the area services gas producing wells (Refer map).



The area is predominantly agriculture (farming) and forestry with the township of Taroom some 130 kilometres to the east. The region is largely flat lying to gently undulating topography.

The Denison EPC was granted on 8th June 2010.

Coal Overview

Data from 42 existing drill holes was used to identify coal which would be considered suitable for the underground coal gasification process.  Coal has been considered within a number of possible horizons but the focus so far has been on the Permian sequence of the Bandanna seams and the lower Reid’s Beds seams. Modelling to date is stronger for these seams.

  

The area of thicker coal in the Reids Dome bed was selected for the initial Project. The following image was taken from the 3D wireframe geological model.



Follow the link to view the full report from Liberty Resources Limited.

To learn more about Liberty Resources Limited click here.

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