On June 1, 2009, the Company, in conjunction with its joint venture partner, Western Warner, acquired 3,856 hectares (9,528 acres) of coal leases located at Drumheller, Alberta. An independent consulting company previously determined that the leases contain approximately 54,000,000 recoverable tonnes of coal. Preliminary evaluation of the mining potential of this property historically concluded the total calculated in place coal was 95,951,031 tonnes with 53,905,623 tonnes potentially recoverable.
The project was introduced to the Company by Western Warner, which controlled the leases for approximately 20 years. During that time, Western Warner undertook extensive exploration initiatives, which were conducted by HudBay Coal Company, who had farmed in to the project. This included drilling, logging and coring of 160 holes. HudBay Coal Company was subsequently taken over by Dome Petroleum, however the leases were in turn sold to Trans Alta. In 1986, Trans Alta paid a penalty and returned the leases to Western Warner.
The Company has been examining the possibility of using UCG as a means to convert the coal into product gas.
We intend to commence an exploration program to map the upper and lower Mannville coal formations from existing wells on our property, and perhaps also shoot some seismic. |

• Underground Coal Gasification in Drumheller
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