Carbon Energy (ASX: CNX) advised that the drilling program for UCG Panel 2 has been successfully completed. 

Work to complete the above ground pipe work and associated facilities is currently underway (see attached photos) and is anticipated to be finished by the end of August. 

Drilling for UCG Panel 3 is progressing with both the vertical initiation well and the horizontal injection well having been completed. Drilling has commenced on the production well. The drilling program for Panel 3 is on track and is scheduled to be complete by the end of August. 

Commencement of operations for Panel 2 is subject to Queensland Department of Environment and Resource Management (DERM)’s review of the Company’s Environmental Evaluation and notice from DERM that the Company may proceed. It is anticipated that DERM’s review of the Environmental Evaluation will be complete by 17th September 2010. 

Immediately upon approval, Panel 2 will be initiated. Once consistent gas production is established the progressive commissioning of the four reciprocating gas engines installed on site will commence. 

Further updates on the progress of the 5 MW power station and construction of Panels 2 and 3 will be provided as the project proceeds.

 

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