CS Energy

CS Energy is a Queensland Government owned electricity generator that operates a power portfolio of 3,660 megawatts, including the new Kogan Creek Power Station near Chinchilla.

Opened in late 2007, Kogan Creek Power Station can generate up to 750 MW of electricity, which is enough to power almost one million homes. The neighbouring Kogan Creek Mine fuels the power station, delivering up to 2.8 million tonnes of coal per year via four kilometre overland conveyor.

CS Energy's other generating sites are Swanbank Power Station near Ipswich, Callide Power Station near Biloela and Mica Creek Power Station near Mount Isa.

The Company is also driving one of the most advanced clean coal projects in Australia – the Callide Oxyfuel Project. Together with Australian and international partners, CS Energy will demonstrate a combination of oxyfuel and carbon capture and storage technology to achieve near zero Greenhouse emissions. Find out more at www.csenergy.com.au.

Qld Gas Company ASX:QGC
Queensland Gas Company is a rapidly-evolving integrated energy business strategically positioned to meet rising demand for its abundant coal seam gas, cleaner power and ample water.

Since listing on the Australian Stock Exchange in 2000 QGC has become Australia's leading coal seam gas producer, Queensland's third largest company, and an award-winning business noted for nimble and innovative action.

QGC's world-class reserves in the Surat Basin are projected to supply around 20 per cent of the Queensland domestic gas market in 2009.

QGC's strengths are underpinned by Queensland Government policy, firm long-term contracts, Australia's move to cleaner, more efficient fuel sources, and the advent of a national carbon trading scheme.

The qualities and depth of QGC's assets and management have been recognised by Britain's BG Group (formerly British Gas), a global energy company seeking to partner with QGC to export gas to higher value overseas markets.

In February 2008 QGC and BG Group announced a joint commitment of about $8 billion to enable the annual export of 3-4 million tonnes of liquefied natural gas (LNG) for 20 years. In April 2008 QGC received $664 million from BG Group as part of the transaction.

The LNG project involves targeting more than 7,000 petajoules (PJ) of 2P (proved and probable) gas reserves, construction of a 380 kilometre pipeline to the city of Gladstone, development of an LNG terminal, and several thousand new jobs.

Next year QGC will join the National Electricity Market. In February 2009 QGC will start supplying gas to QGC's new Condamine Power Station, which will produce 140 megawatts of electricity with minimal greenhouse emissions.

QGC invests in applications for large volumes of water yielded during the release of coal seam gas. The water has the potential to help drought-affected communities, towns and farms in the Surat Basin.

Santos ASX:STO
Santos is behind a $7 billion project that plans to pipe coal seam gas from Surat and Bowen basin gasfields to a proposed LNG plant in Gladstone. The project could create up to 3000 jobs and inject around $1 million into the Queensland economy every year.

Linc Energy ASX:LNC
Linc Energy is an innovative, forward thinking energy company and Australia's leader in clean coal technology. The company's vision is to become a dominant player in the supply of more environmentally friendly power, diesel and jet fuel. Linc Energy aims to achieve this vision by bringing together, for the first time anywhere in the world, two proven production processes known as Underground Coal Gasification (UCG) clean coal technology and Coal to Liquids (CTL). These processes will economically convert vast 'stranded' coal deposits into ultra clean liquid fuels. Linc Energy will also use the Syngas produced from UCG clean coal technology as feedstock for gas turbines to generate much needed environmentally friendly electricity. The world may face and energy crisis in the not too distant future as a direct result of the rapidly depleting global reserves of oil. Linc Energy has a unique leading edge capacity to provide a viable, more sustainable and smart alternative source of liquid fuels and power generation well into the foreseeable future. Linc Energy represents a new future for liquid fuels production and power generation.

Syntech Resources
Fifteen kilometres east of Miles, Syntech Resources has started work on a project that will see one million tonnes of coal export out of the Port of Brisbane by the second quarter of 2008. However, with the Surat Basin Rail, that amount could increase significantly.

Cockatoo Coal ASX:COK
Cockatoo Coal is an emerging Australian coal company with a large portfolio of Queensland coal tenements covering in excess of 3,500km2. The Company currently has identified 90+million tonnes of total coal resources (JORC) and has plans for aggressive exploration and development during 2008, and is also considering the potential for future acquisitions.

The company's intent is to commence mining from 2011, with a current target production of 12.5Mtpa by 2015.

ACQUISITION OF SURAT BASIN EXPLORATION TENEMENTS

The coal assets which Cockatoo has acquired are EPCs 796 (Horse Creek) and 813 (Dogwood Creek), covering an area of approximately 816 square kilometres located in the Surat Basin. These acquisitions significantly increase Cockatoo's already large footprint of exploration tenements and developments in the Surat and Clarence-Morton Basins. These new areas, together with Cockatoo's existing portfolio of Surat tenements, are considered highly prospective for potential development of open-cut export thermal coal operations of significant capacity.

Northern Energy ASX:NEC
Another company that has been stalled by the lack of transport and water. Northern Energy Corporation owns a 320 million tonne Elimatta resource west of Wandoan and will use the project to move from an explorer to a producer.

Xstrata Coal
Is currently in the pre-feasibility stage of what could by 2011 be Australia's largest coal mine. The company is looking to export up to 30 million tonnes of coal a year from its Wandoan resource, and is working with

Arrow Energy ASX:AOE
Arrow Energy is one of Australia's leading producers of coal seam gas. The company holds equity interest in more than 80,000 square kilometres of acreage close to Queensland's three key growing gas markets - Brisbane, Townsville and Gladstone. We are a top 200 ASX company and have a current market capitalisation of more than $1.8 billion.

Arrow has four producing projects which account for around 20 percent of Queensland's overall gas production - one in the Bowen Basin near Moranbah and three in the Surat Basin near Dalby. The company plans to advance a number of highly prospective blocks over time in reaching its net production target of 116 petajoules (PJ) per year by 2012.

Arrow is now working hard to realise the potential of its asset portfolio. While continuing its focus on being a low-cost producer, the company is targeting enhanced margin sales by increasing its investment in new countries and new products where gas is more exposed to oil pricing. Arrow has established a foothold in the key Asian growth markets of India, China, Vietnam and Indonesia, and signed agreements for the development of two liquefied-natural-gas (LNG) trains in Australia.

The Catalysts
Water: Vital to major coal mines, coal seam water and the Nathan Dam appear to be the solutions. The Nathan Dam could be completed by 2011, in line with other infrastructure projects.
Rail: The Surat BasinRail involves an upgrade of rail line from Toowoomba to Wandoan, and Banana to Gladstone, along with the 200km missing link between Wandoan and Banana. Once completed in 2011, it will open the Surat Basin up to the world.
Port: Stage one of the Wiggins Island Coal Terminal should be finished by 2011-12, allowing up to 75 million tonnes of coal to be exported around the world. Stage two will increase its capacity to in excess of 120 million tonnes.

By 2011, the Surat Basin will be Australia's largest energy province. The 40 billion tonnes of untapped coal will be exported around the world, driving the economic prosperity of the region, state and nation for generations to come. Lifestyle mixed with its economic potential make the Surat Basin the first choice of investors and developers.