View Full Version : REgal Resources up 10% on Bio-Methane Technology proposal

09-14-2010, 03:33 AM
Biogenic methane enhancement (BME) involves speeding up the natural biogenic process that produces methane known as coal seam gas. Biogenic methane accounts for 20% to 40% of the total methane reserves on earth. Major sources include coal seam gas in the Surat Basin in Queensland Australia and Powder River Basin in Wyoming, United States of America.

BME works by artificially stimulating the naturally occurring micro-organisms called methanogens that break down the hydrogen and carbon from the coal and emit methane. BME technology works best on lignite (brown coal), low rank black coals and oil shale. This is because of their high volatiles and hydrogen content, which if all converted to methane would yield gas quantities several times that of traditional coal seam gas.

Acquisition of Biogenetic Methane Enhancement Project
The Directors of Regal Resources Limited (?Regal?) are pleased to announce that it has entered into an agreement to purchase 100% of the issued capital of Enhanced Biogenic Methane Pty Ltd (?EBM?) via the issue of 40 million ordinary shares and subject to shareholder approval.

EBM has secured an exclusive Australian and Northern Ireland licence to biogenic methane enhancement (BME) technology, which has been granted from the Western Research Institute of Wyoming, who are at the forefront of this technology globally.

This transaction enables Regal to focus on applying the EBM technology at its Oak Park Pilot Site, located within EL 4507 to the west of Melbourne where there is evidence of substantial quantities of brown coal to which the EBM technology may have a commercial application. Regal holds 1407km2 of tenements in Victoria (EL4507 and EL4510) containing approximately 10 billion tonnes of non-JORC brown coal.

It is proposed that a trial of the EBM technology will commence in the near term upon regulatory approvals being granted. Over the last six months substantial work has been undertaken on the approval process, and it is anticipated the trial will commence during October 2010. The trial, initially focused on an existing well at Oak Park, will involve the stimulation of microbes within the 20 metre thick coal seam to produce methane gas. The trial will cover three phases to examine specific aspects of the technology, with each phase planned to run for a minimum of 45 days.