Ergo Exergy - UCG

October 21, 2011

CIRI and Laurus Energy plan Seismic survey at Stone Horn Ridge in support of UCG project

Stone Horn Ridge LLC, the joint venture between Cook Inlet Region Inc. (CIRI) and Ergo Exergy's technology licensee, Laurus Energy Ltd., continues to progress the characterisation of its UCG coal resources at a site called Stone Horn Ridge, northeast of the Beluga River in Alaska. A program involving drilling of 13 cored holes, wire-line logging and laboratory analysis of the coal and rock samples has been completed and an initial computer model of the site has been generated.

The joint venture company now plans to carry out a high-resolution seismic survey of the site to enable improved definition of the model which currently indicates about 300 million tonnes of coal. Following the seismic survey, characterisation of the site will continue with intensive hydrogeological and rock mechanics studies and specific UCG testing of the coal seam. The project aims to eventually provide UCG syngas for electricity generation using modern gas turbines and the development partners expect that such electricity would be significantly cheaper than generation from Cook Inlet basin natural gas.

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