• Carbon Energy (CNX) has executed an Agreement with Antofagasta Minerals S.A (“Antofagasta”) to jointly assess and develop a coal deposit in Mulpun, Chile using Carbon Energy’s Underground Coal Gasification (UCG) technology.
• Carbon Energy will earn a 30% interest in the Mulpun coal deposit by applying its world leading UCG technology.
• Carbon Energy was selected by Antofagasta as their preferred joint venture partner on the strength of its superior technology, following the completion of a two year process by Antofagasta in which the capability of UCG companies from all over the world was rigorously assessed.
• Chile provides an ideal market opportunity for Carbon Energy due to the fact that energy demand is forecast to grow at 6-7 per cent over the next 5-10 years and there is an under supply of domestically sourced energy. Chile is highly exposed to increases in the already high price of imported supplies of diesel, natural gas, LNG and coal.