CFT Energy has developed a patented technology for recovering coal seam gas more efficiently and cost effectively than existing methods, without disrupting mining operations. The technology is non-intrusive, avoiding environmental risks from chemicals or casings. CFT plans to license this technology globally and form joint ventures with major Chinese coal miners to access large reserves. This novel approach has potential for significant impact on the coal seam gas industry by improving recovery rates, lowering costs, and establishing CFT as a major player in the industry.

1. Australia’s CFT Energy
PatentTransforms Coal Seam Gas
Recovery, No Fracking
About to be back-door listed onto the in China, HeilongjiangLongmay Coal
ASX through a former financial Mining Group to recover vast methane
services company ASQ, CFT Energy deposits in coalmines and coal beds.
is about to revolutionise Coal Seam The agreement covers mines:
Gas (CSG) recovery and apply a Hegang, Jixi, Qitaihe, and
strategic business model giving the Shuangyashan.
company vast gas resources and
asset control with coal and gas rich CFT’ strategy to gain access to the
largest coal mining companies in large operating coal mines in China
China. through its CJV model, using its
patented gas recovery technologyand
CFT has developed a game changing existing gas data provided by CJV
patentedtechnology platform to partnersto secure major CBM assets
recover coal seam gas more efficiently and prove up and deliver reserves, is
and cost effectively than any existing one that is proving to be the key
technology currently in use. The formula in building value for CFT.
uniqueness of CFT platform
technology is that it is non-seam CFT platform provides a safer mining
intrusive, therefore posing no risk to future with improved production output
the environment, coal seam for the miners and gives CFT control
contamination from chemicals or metal of the gas assets. This model greatly
casings, as is the case with current separates CFT from other CSG
horizontal inseam coal seam drilling. players. CFT is not your typical gas
The application of the platform is such explorer. CFT does not go looking for
a paradigm shift to existing methods gas and hope to hit a reserve, CFT
that coal miners can continue existing already knows where the gas is and
operations without interruption while generally the size of the reserve from
the gas is recovered, which is a vital the data provided by the operating
factor to many mining operations in mining company. Therefore, risk and
China, rushing to meet immense costs are managed through strategic
energy needs. drilling.
Coalmine methane (CMM) poses a How important is the new CFT gas
dangerous safety issue and a very recovery technology platform to the
disruptive obstacle, often hindering coal seam gas industry and its future
many coal-mining operations with impact on the industry, is immense.
potentially deadly consequences. For Itstechnology platform, whichis more
this reason, many coal miners have cost effective, more environmentally
been turning to CFT for its platform sensitive (no fraccing) and recovers
technology to discuss possible joint more gas than any existing technology
ventures regarding coal seam gas will change CSG recovery
(CSG) recovery and delivery of gas to forever,making every existing
the marketand energy grids. extraction method unsustainable.
CFT Energy has recently entered into By owning a patented gas recovery
an 80%CJV’s with a major coal miner technology platform CFT can and will

2. be seeking to enter into licensing in revenue in 2011. The company
agreements with existing gas fracking and related activity accounted
explorers, drillers and oil and gas for 77% of the total revenue. The
service providers to use the platform company also stated that its 2012
technology for a fee or percentage of activity in fracking would increase by
gas recovered as a payment fee. 10% in Russia. TCW has also entered
the Australian CSG LNG market by
CFT believes that the platform acquiring a well service company and
technology will have such a great participating in the massive
impact on operating cost due to great Queensland gas market.
recovery flows, speed of drilling and
use of operating resources, that it will Contaminating aquifers is a very
make currently uneconomical serious environmental concern and
operations, due to low gas prices has raised heated public and political
viable. debate in many countries.
Conventional drilling and fracking
The platform technology is non-inseam techniques, currently in use, have had
intrusive, enabling well service some minor mishaps of water reservoir
providers to significantly reduce costs and coal seam contamination due to in
of drilling and gas recovery by drilling seam fracking and chemical seepage
into bedrock above and below gas rich with catastrophic media public
multi-seam layers and penetrating relations disasters. CFT operates its
them through high pressure jetting, drilling outside the coal seam, thus
delivering and recovering gas from mitigating
entire reservoirs due to the techniques
ability to extract gas from the thinnest Environmental concerns regarding
and softest coal seams over a vast removal of water from underground
lateral area. Conventional drilling storages and hazardous gas
methods fail to capture gas in soft and omissions during recovery are non
thin coal seams. existent because CFT patented
technology restricts fluid flow through
Nonetheless, in Queensland, forecast a closed circuit. Therefore, there is no
drilling capital expenditure using loss of water.
conventional horizontal drilling for
CSG LNG ranges from $521 million in Because CFT Energy operates on
2011 to $959 million per annum in existing coal producing leases, its
2017 (ACIL Tasman). An average well environmental footprint will be minimal
drilling cost ranges between $750,000 as CFT does not explore and drill new
- $1 million dollars using fracking and unproven coal fields.
conventional horizontal drilling
methods. What sort of an impact will CFT have
on the CSG industry will be exciting to
A relatively small Canadian Toronto watch. Those who take part in
Stock Exchange listed CSG LNG investing in this opportunity will be
horizontal driller, Trican Well Services rewarded with significant upside
(TSE:TCW) with a market cap of should CFT achieve attainable
$2.5billion declared a 136% increase milestones.