GulfX (GLX) another wannabie UCG!

[tommy]

Okay, while the underground coal gasification sector is going absolute gangbusters (see LNC, MEE and CXY thread), let me throw in another UCG hopeful to add more fuel to the already hot sector.

GulfX (GLX / GLXO) might become the next SAPEX (SXP) at the going rate.

"GulfX Limited is an Australia-based company engaged in oil and gas exploration, development and production, and investment in the resources industry. The Company has an interest (subject to satisfying its earning provisions) in five offshore oil and gas exploration permits, which are all located offshore, in the Gulf of Mexico. On August 9, 2007, the Company entered into an agreement to acquire Syngas Energy Limited and Syngas Australia Pty Ltd. The Company’s subsidiaries include GulfX Holdings Inc. and GulfX LLC."

Website:
http://www.syngas.com.au

Market cap: approx $16 million (I think, don't bet your house on this) -fully diluted
No. of shares: 120,176,907
No. of options: listed = Expires Dec 2009, exercise price @ $0.20 x 40,892,407
unlisted = Expires Dec 2008, exercise price @ $0.08 x 52,000,000
Cash: 2.4 million as of March 31, 2008
Current share price: $0.079
Current option price: $0.025


Syngas Project:
http://www.syngas.com.au/File/GulfX%20brief.pdf

Syynnggaass Prooject

Production of 30,000 bbl/d of premium diesel from GulfX Limited’s Syngas premium diesel project as well as 500 MW of power and 120,000 t.p.a. of native sulphur is targeted. South Australia currently imports all of the state’s diesel requirements from other Australian states or from outside Australia. Diesel vehicle consumption in South Australia is 2 billion litres p.a. and is growing, with a further 1 billion litres currently used or likely to be required by the mining and agriculture sectors.


The Syngas project will produce 1.6 billion litres of premium diesel p.a. (10 million barrels p.a.), approximately half of South Australia’s requirements. Ninety five percent of the project’s revenue will come from premium diesel sales. Diesel imports to Australia in 2006 reached 5.4 billion litres (34 million barrels). Imports are expected to increase significantly over the next 5 years, as a result of declining Australian petroleum reserves/production (e.g. Bass Strait), aging refinery closures, and limitations to increased diesel production from the remaining Australian refineries.

In terms of power in South Australia, 1500 MW (40%) of the state’s requirements are currently met by Victorian LaTrobe valley coal fed power stations. A further 750 MW is generated by coal fired plants built in 1960 and 1985. Increased demand for power is expected both in the domestic and industrial markets. BHPBilliton’s Olympic Dam Expansion, for example is likely to require an additional 400 MW. The Syngas project will generate 250 MW of power for supply/sale into the national power grid.

Sulphur, trace element and particulate removal will lead to premium quality diesel production. Strong demand for native sulphur in Australia, for use in sulphuric acid production particularly by nickel laterite producers, will add to the Syngas project’s revenue stream. From a clean premium diesel perspective, the Syngas project will produce a premium diesel that combusts more efficiently, produces less carbon dioxide (than petroleum and conventionally produced diesel) and provides more torque, when used in newly designed turbo diesel engines. The Syngas project is located 100km from Adelaide in South Australia (refer Diagram 1), in close proximity to to road, rail and national electricity grid infrastructure and skilled labour. Diagram 1: Location of the Syngas Project.

Source: PIRSA, SARIG 2007 Project feed material is lignite from large, extensively drilled and delineated deposits, containing approximately1. 4 billion tonnes of non JORC resource, over which mineral exploration licenses, are held by GulfX.

Commercially proven gasification, gas clean up, and end product technologies will be used. Sasol/Chevron, Shell, Siemens, GE and Lurgi are several of the globally recognised technology licence providers in this area. Production at the 40 year life Syngas plant is targeted to commence in 2015, with subsequent ramp up.

Over the past three months geological and gasification engineering expertise has been secured to support the progression of the project. A drilling program, to secure more than 750 mt of JORC resource is scheduled to commence in April 2008.

Gasification testwork on samples collected during this program are to follow. GulfX currently also holds interests in prospects in the Gulf of Mexico. The long term vision for GulfX is to become a major global premium diesel producer - Fuelling a cleaner Future. Generating significant returns, in a crude oil supply constrained and carbon emission constrained future.
___________

Rationalization of Gulf of Mexico Interests:
http://www.stocknessmonster.com/news-item?S=GLX&E=ASX&N=406902
___________
Drilling program:
http://www.syngas.com.au/File/GLX_prioritised_drill_program.pdf


Now that this Syngas project drilling program has been released, investors can expect some price movement on the back of the hype surrounding Sapex because both are near Adelaide, South Australia: SAPEX has been granted new mineral Exploration Licences there recently!!!


___________

Quarterly report:
http://www.stocknessmonster.com/news-item?S=GLX&E=ASX&N=404667
___________

Cooperative Exploration Agreement with Torrens Energy
http://www.syngas.com.au/File/Cooperative_exploration_agreement_with_torrens_10_ mar_08.pdf

Chart trend UP!
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aglx&draw.x=54&draw.y=17

So ladies and gents, before the lemmings get hold of this one, keep an eye on GLX... I like it due to its tiny market cap (16 million!)

I prefer GLXO for greater leverage... this stock is still under the radar.

However, this is a VERY HIGH RISK PLAY, not for the faint-hearted. Options in particular are very illiquid and you will be in for a roller coaster ride. GulfX is years behind Linc Energy (LNC) and Metex (MEE) so make sure you bear that in mind.

[gw]

Thanks Tommy,

Have a holding in this one. Competent and experienced board. JORC due in this quarter. 40 year mine life. Proven technology - SASOL in South Africa is a good example. Hope we get a bit of sp movement in te not oo distant future.

Cheers
GW

[tommy]

Cheers for the heads up gw, I suspect that GLX will be the next one to attract some attention in the UCG sector... hopefully in the short run, bar another DOW bloodbath :-P

Is JORC due to be COMPLETED this quarter???? Wasn't quite sure about that...

[tommy]

Excerpt of
http://anz.theoildrum.com/node/3817

Coal To Liquids In Australia

Energy Minister Martin Ferguson has been talking about gas to liquids (a subject covered here previously) as part of a strategy to address Australia's dependence on imported fuels. The minister has also previously expressed enthusiasm about coal to liquids projects (declaring at a recent CTL and GTL Conference "I regard this industry as the key to securing Australia's energy future"), so in this post I'll have a look at a few CTL projects currently at various stages of development around the country.

MARTIN FERGUSON: Just think about the competitive difficulties at the moment confronting Australian industry and the ordinary motorists given the price of oil. If we don't actually come to terms with investing in our future, then this is going to raise serious questions about our competitive position internationally in a tough global market in a very short period.

GREG HOY: According to the Minister, the best hope may lie in applying a new technology to Australia's vast reserves of natural gas and coal to create a new fuel for Australia's motorists and transport fleet.

GREG HOY: Crucial trials at Queensland's Linc Energy will begin before the end of the month, where a coal seem at Chinchilla, north-west of Brisbane, will be ignited underground like so, with compressed air forced through the seem to form a synthetic gas of steam and carbon, which as it exits will be converted from gas to a clear liquid diesel, with enormous production potential, the same technology we are told, can be applied to natural gas reserves.

MARTIN FERGUSON: So it's about exploration, plus encouraging investment in downstream processing in Australia on gas liquids and coal liquids and thereby creating synthetic alternative fuels.

GREG HOY: Once again, the sceptics do not share the Government's optimism that a solution to Australia's oil crisis is at hand.

JIM BUCKEE: The conversion of coal and gas, gas to liquids, for example, are quite energy expensive of themselves.

Monash Energy

Monash Energy is a venture by Shell and Anglo American to jointly develop a "clean" coal to liquids project in the Latrobe Valley, "utilising the latest low-emissions technologies".

The Monash plant is to use local brown coal as a fuel source (gently lifted from the earth by the little machine shown above) which has a moisture content of more than 60%. Vaporising the moisture when the coal is used for power generation results in an energy loss that also results in higher CO2 emissions per unit of electricity generated (around 50% higher than using black coal), which presents a major problem for Victorian power generators with the commencement of carbon emissions trading looming in the not-too-distant future.

Monash promotes their CTL project by highlighting both energy security concerns and their plan to sequester the CO2 produced (approximately 13 million tonnes of CO2 per year) offshore beneath depleting oilfields in Bass Strait.

Roll-out of these technologies – particularly coal gasification and carbon capture and storage – is becoming critical at a time when official forecasts project a 60% increase in world primary energy demand over the next thirty years. These same forecasts also suggest fossils fuels remain one of the primary sources of energy, so the aggressive adoption of new and less carbon intensive technologies is vital. Critically, the technologies chosen by Monash Energy enable separation of a concentrated stream of CO2 that can be transported to injection wells in deep underground geological formations for secure storage.

The Monash Energy focus on the production of liquid fuels – such as an ultra-clean, virtually zero sulphur synthetic diesel – is also highly relevant to the emerging debate around energy security. The Project would be one of the largest single investments ever undertaken in Australia. Its size and complexity means that at least a decade from initiation to commercial production.

The first commercial plant is expected to produce about 60,000 barrels per day of synthetic fuel (80% of which is high-quality diesel). Commissioning of the plant is targeted for 2016. There has also been talk of the project producing hydrogen. According to the company (as of late 2006) the output of the plant has an indicative price of $US50/barrel - however I suspect this number has changed somewhat since then - and the Gippsland Basin brown coal resource is sufficient to support several such plants, each operating for 50 years.

The plan to sequester CO2 in Bass Strait has hit some snags, with Exxon announcing last year that the region still has more than 20 years left of oil production and more than 30 years of gas, prompting speculation that the carbon dioxide may need to find another home. Exxon continued to raise concerns about this plan at the APPEA conference this week.

A pilot onshore sequestration project recently started up which may provide an alternative option if it can be made to work.

Linc Energy

Linc Energy is a small player that is commissioning a demonstration plant to convert coal to liquids at Chinchilla, on Queensland's Darling Downs (and one which promotes its process as a solution to peak oil). The demonstration plant is due to prove at the end of the month that it can produce products such as diesel and aviation fuel.

The company is using underground coal gasification (UCG) to produce syngas, then converting the syngas into liquids using the Fischer Tropsch process. The UCG technology is provided by Russian company Ergo Exergy.

UCG differs from conventional above-ground gasification in a number of ways:

* Coal is not mined.

* Chemical processes are arranged to occur in the coal seam in situ.

* The injection and production wells must be connected within the coal seam by the links of low hydraulic resistance to allow production of commercial quantities of gas.

* Process water for gasification usually comes from the coal itself and surrounding rocks, and its influx must be carefully regulated.

* No ash or slag removal and handling are necessary since they predominantly stay behind in the underground cavities.

* The process must be confined within a hydraulic system created in the coal seam so that no leakage of the product is possible and no contamination of the underground environment can occur. Such a hydraulic system is called an underground gasifier, and its design is the most crucial part of a UCG operation.

The company is claiming it can produce syngas for about 70c a gigajoule, which The Australian claims is "causing some discomfort for Queensland's coal seam methane producers" (although they don't appear to be direct competitors, in the absence of any gas-to-liquids projects in the coal seam methane industry at present). The company also claims UCG produces 20 times more gas for a given volume of coal than CSM can.

If the demonstration plant is successful, the company hopes to develop a 20,000 barrels-a-day commercial operation - expected to cost around $800 million. The output would be trucked to Brisbane for distribution by BP.

Linc has formed a joint venture with a small Queensland based biotechnology company called BioCleanCoal to develop a bioreactor which will "convert CO2 into oxygen and solid biomass through a photosynthesis process" in the hope of reducing or eliminating CO2 emissions.

Some of the early proposals from Linc talked about a syngas fuelled power station as well, though this now seems to be on the back burner. The company claims this would produce fewer greenhouse gas emissions than regular natural gas fired power plants, which might be another reason why it promotes itself as a "clean coal" company.

According to a lifecycle analysis of UCG electricity production by BHP's Newcastle Technology Center in Australia (note that BHP is a very large producer of coal):

* UCG-CCGT (Underground Coal Gasification-Combined Cycle Gas Turbine) has the potential to be one of the lowest greenhouse gas (GGE) coal-based technologies, and compares with the emerging IGCC (Integrated Gasification Combined Cycle) and more radical ultra-supercritical developments — it would generate around 25% less GGE than the most efficient of Australian coal-fired power stations.

* UCG-CCGT, however, emits more GGE than does a natural-gas-fired CCGT process due primarily to the higher carbon to hydrogen ratio of the gasified coal product.

* NOx values are equivalent to other combined cycle type power stations.

* UCG-CCGT requires smaller amounts of water compared to other combined cycle technologies, as gasification water requirement is provided by controlling ingress of water from aquifers surrounding the wells and gasification voids. Some of this water is extracted as condensate and reused for cooling purposes.

The company is also expanding into Vietnam, recently announcing plans to build a UCG power plant there.

In addition, there are reports that Linc may be involved in plans to evaluate "huge but little explored coal reserves" in the Arckaringa Basin in South Australia's far north, with the goal of producing electricity and fuel for major resources projects - in particular Olympic Dam and its large new requirements for power (in a state already short of power generation capacity). According to The Age, no serious exploration work has been carried out in the basin since the 1980s, although the SA Department of Primary Industries and Resources has data from previous drilling indicating that billions of tonnes of coal could be contained in the region.

GulfX / Syngas Energy

GulfX is another company talking about building a CTL plant, again via gasification of coal, at a site 300 kilometres north-west of Adelaide. Apparently they partnering with geothermal energy hopeful Torrens Energy. The company says "We will have an on-site facility which will consist of a 30,000 barrel a day refining plant and a 500 megawatt power plant, of which 50 per cent would go into the national grid".

Both companies are minnows, so this project appears highly speculative.

Coal to Liquids Elsewhere

Until recent years, the only countries that have pursued coal-to-liquids programs have been those that have had difficulty obtaining sufficient oil supplies - particularly Nazi Germany and in apartheid-era South Africa by SASOL. Both used the Fischer-Tropsch process - a number of other coal-to-liquids processes have been explored in the years since.

South Africa has been producing fuel from coal since 1955 and has the only commercial CTL industry currently in operation. Around 30% of the country’s liquid fuel needs are produced from coal, with total capacity above 160,000 barrels per day.

Rising oil and gas prices have caused Asian countries to start looking seriously at coal-to-liquids projects, with China expected to start its first large scale plant in the coal-rich region of Inner Mongolia, using the Bergius process. The plant will reportedly have a daily output of 20,000 barrels, rising to 100,000 barrels a day in future years.

A study last year by the Chinese Academy of Sciences said: "Production of liquid fuels from coal is practically the most feasible route to cope with the dilemma in oil supply." It concluded: "Establishing large-scale CTL plants on the pitheads of several main coalfields is feasible and competitive when oil price is well over US$25 per barrel." According to The Guardian, at least two more commercial scale coal-to-liquids plants are under construction in China, although the Chinese government has expressed concern about the possible environmental impact of uncontrolled expansion, and has taken steps to limit the number of smaller facilities.

The IEA is predicting that by 2030, China's non-conventional oil supply from CTL plants will reach 750,000 barrels a day. An IEA report on CTL, due to be published this spring, will highlight other projects planned or under way in Japan, the US, Australia, China, India, Botswana, Indonesia, the Phillippines and South Africa.

The Indian government recently approved a joint venture between Tata and Sasol.

There is an organisation pushing adoption of coal-to-liquids processes in the United States called the Coal To Liquids Coaltion (also known as FutureCoalFuels.org").

The US Air Force seems to be showing a keen interest in synthetic fuels from CTL and is reportedly encouraging the creation of a CTL industry that could leverage local coal reserves based on energy security concerns. They apparently have plans to lease property at Malmstrom Air Force Base in Montana for the construction of a CTL plant.

The Governor of Pennsylvania is also pushing for federal funding to establish a CTL plant in his state - a plan not without critics.

[gw]

Tommy,

Thanks for the information- you're a gem. I'm sure that glx is expecting to be jorc compliant within the next quarter. Much work has already been done by the SA govt in the 1970's. Will keep in touch.

Regards
GW

[tommy]

Ladies and Gents,

GLX has started to move big time...

GLX up 18%, GLXO up 60% today!!

Hope GW and I are not the only ones enjoying da ride :-)

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aglx&draw.x=54&draw.y=17

[Woody51]

Tommy, I didn't realise this thread was on here. Great management/backing and in the right place at the right time. Middlemas and his crew always inspire confidence. I am surprised GLX haven't run before now. Think the big boys have been quietly accumulating. Lot going for it. Fingers crossed. Cheers.

[tommy]

Hi Woody51,

GLX trading volume is still peanuts and nowhere near the levels of its peers... once the heads start moving, the options will move very quickly.

The chart looks very bullish

http://asx.netquote.com.au/charts.asp?code=glx&x=0&y=0

Still very cheap IMO!

[tommy]

GLX up 5%, GLXO up 10%...

How boring that it's not increasing by double digits today, hehehe

I think this is starting to catch the market's attention boyz, keep an eye on it closely.

CXY is getting rerated, and it is only a matter of time for SXP and GLX to follow suit.

[tommy]

WTF, I obviously spoke too soon because GLX closed up 10% and GLXO up 30%!!!

This is certainly starting to gain momentum, I am already up more than 50% in a couple of days... eazy peazy with the options!

Still holding GW and woody??

[Woody51]

Loaded with the options. Been holding since Middlemas came on board - backing the jockey - and have averaged right down - .024c. I think these have a long long way to go and have a feeling they are soon going to spring a surprise ... just a hunch, note. The people backing this one are serious operators (see what they did for Indo Mines) and an excellent professional team is at the helm. I'm holding and will consider selling only when I am in retirement country!

Cheers ...

[gw]

Hi Tommy,

Have had my holding since Middlemass and Pierce were involved. Only have shares - a nice little holding. Hoping for the best and things seem to be getting a lot brighter. I've attended the AGM's and have confidence in the new management - lots of relevent experience and a great work ethic. Proven technology over decades - If the project progresses as the management expects, over time, the results could be huge.

What would the value be for 12 months worth of clean diesel? Huge rewards if they get it right. Got a long way to go though...roll on the JORC in the near future...I expect that to kick the sp along nicely.

Regards

GW

[Awamoa]

I have just looked back at my purchase records for this stock.I paid 16cents in May 2006 with the Aussie dollar at 83 cents.With a bit of luck I am not going to be out of pocket much longer.Up to 12 cents this morning.

[tommy]

Hi GW, Woody51 and Awamoa,

Read today's presentation and seems like GLX is ready to rock and roll... get ready boyz and girlz, this baby should attract more attention in the days ahead:

Presentation:
http://www.stocknessmonster.com/news-item?S=GLX&E=ASX&N=407911

The chart is beauuutiful:
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aglx&draw.x=54&draw.y=17

[tommy]

GLX up 28%, GLXO only up 12%... options lagging.

If you hold GLX or GLXO, continue holding on to it because this is likely to be the beginning of the fireworks, hehehe

Cannot believe this stock was only 8c last week!

[tommy]

Massive close coming, GLX up 33%, GLXO up 23%!!!!!!

I am wetting my pants!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[shasta]

Massive close coming, GLX up 33%, GLXO up 23%!!!!!!

I am wetting my pants!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Perhaps you need to spend some profits on a bladder control product/company :D

Was VERY close to hitting the buy trigger this morning, but was too cheeky hoping for a small retrace.

GLX will fly if they do announce the 750Mt JORC resource this quarter.

The latest presentation suggests so...

http://www.stocknessmonster.com/news-item?S=GLX&E=ASX&N=407911

[tommy]

Hi Shasta,

hahaha, I can't think of any bladder control/product company that's gonna be a better investment than GLXO!!

What, you didn't buy GLX today???


I thought the presentation was excellent... apart from the "JORC withdrawal" bit but that seems to have been included and then extracted purposely to highlight the fact??????? Is that possible??

Even after today's spike, market cap is still rediculously low so hopefully the rise will continue.

I am wondering how long it is going to take for GLX to hit 20c: the exercise price of GLXO!!

[shasta]

Hi Shasta,

hahaha, I can't think of any bladder control/product company that's gonna be a better investment than GLXO!!

What, you didn't buy GLX today???


I thought the presentation was excellent... apart from the "JORC withdrawal" bit but that seems to have been included and then extracted purposely to highlight the fact??????? Is that possible??

Even after today's spike, market cap is still rediculously low so hopefully the rise will continue.

I am wondering how long it is going to take for GLX to hit 20c: the exercise price of GLXO!!

Ive been weighing up either GLXO,CXYO,LMPO,BLKO or OIPO

Hmmm so many tempting targets ;)

[tommy]

Ive been weighing up either GLXO,CXYO,LMPO,BLKO or OIPO

Hmmm so many tempting targets ;)

gee, you are a sucker for microcap CSG/UCG options, hehehe (so am I!)
I got GLXO and BLKO but sold out CXYO way too early (kicking myself!!!!)

Why not get all of them? The CSG and UCG sectors will contunue booming regardless of what the All Ords and DOW are doing as long as crude oil remains high...

[shasta]

gee, you are a sucker for microcap CSG/UCG options, hehehe (so am I!)
I got GLXO and BLKO but sold out CXYO way too early (kicking myself!!!!)

Why not get all of them? The CSG and UCG sectors will contunue booming regardless of what the All Ords and DOW are doing as long as crude oil remains high...

Not a sucker for them, but for BLKO & OIPO (i know these 2 the best), they have huge potential on such small market caps, & both have $$$.

With all the hype on CSG on ST thru, BOW, VPE, RPM etc i have done a ton of research, & UCG has a far superior recovery rate over CSG.

Not saying CSG isn't the way of the future, because it will be in some way, but the UCG just seems to have more potential.

Anyway thats my rant :D

[tommy]

Hi Shasta,

I totally agree with you that UCG being superior than CSG. And the public really hasn't caught up with this story yet!

I also like the "tech + resources" combination rather than tech alone or resources alone (you know I am a sucker for tech firms, hehehe) not to mention the CLEAN factor (emissions, etc.) and increasing economic feasibility (need for alternative energy growing on the back of high energy prices).

[shasta]

Hi Shasta,

I totally agree with you that UCG being superior than CSG. And the public really hasn't caught up with this story yet!

I also like the "tech + resources" combination rather than tech alone or resources alone (you know I am a sucker for tech firms, hehehe) not to mention the CLEAN factor (emissions, etc.) and increasing economic feasibility (need for alternative energy growing on the back of high energy prices).

Tommy

You & i seem to be on the same page of late....

Have a look at the CLQ thread i started a while back :)

[tommy]

Tommy

You & i seem to be on the same page of late....

Have a look at the CLQ thread i started a while back :)

Hehehe, we must be stalking each other or what... NOT!

Jokes aside, I am surprised that not many posters here have got on to the UCG bandwagon like us when it has been easy (perhaps too easy??) to make money on previously unknown microcaps (especially their options), thanks to the likes of LNC, MEE and CXY attracting more media attention and investor money into the sector.

The logic is that once people start to realize LNC and MEE is a bit too expensive, their speculative money goes into their smaller peers: CXY and GLX are perfect examples, and GLX's timing of the presentation was impeccable.

I expect other UCG wannabies to follow suit, just like when MAK became the fertilizer hot rod: many mining specs suddenly started highlighting their potential for phosphate and potash and investors/traders totally got sucked into it (including myself, though not complaining at all!)

Anyway, GLX has plenty of potential left... I wouldn't be surprised if it reaches blue sky next week after closing at one year high today, fingers crossed.

PS thanks for the CLQ tip, will check it out!

[Woody51]

Boy, what a day! Not surprised at all though. Having accumulated, the powers that be have obviously decided it was time to let the flood gates open. This stock was overdue for a SERIOUS re-rating. I think this is one of the more viable stocks in the sector and expect the SP to rise a lot further from these these levels. And why not.

What has been gratifying to me, is the 'dead straight' quality of the posters on this thread, led by Tommy.

Note though, I do think that stock picking among the "green" wannabes will be crucial from hence. I think a lot of people will get burnt when the 'reality balloon' pops on many of them.

My two best (and safest) shortish/medium term bets, for the record, are miners: KGL and SRZ. These aren't fly-by-night specs. Genuine explorers, respected management, well backed, at bargain basement prices. Lot's of news pending. Not ramping, but people looking to park a bit of their profits could do worse than check them out. Time will be my judge.

Stocks I don't own and would currently like to buy (if I had the cash) are Horizon, Compass, Havilah.

I have made a motza in the last 3 weeks on Alliance, which I still hold. Given that it has doubled in price, it's a bit hard to 'tip' them, but in a few years I think they will be worth many multiples more than they are now.

Best of the 'regular' ASX stocks: CSR by a country mile. It's all about glass - and double glazing to be exact. The best greenhouse remedy on the planet. And they have the market. Mark my words. Cheers.

[tommy]

Thanks for your tips woody, always interesting to hear what other posters' portfolio consists of...

As for myself, I have absolutely no faith in the stability of financial markets at present so am ready to exit the market any moment if there are signs of another bloodbath triggered by the wobbly DOW (which is now very likely IMHO). Might have to be very careful trading this coming week, DOW and All Ords charts are not looking good. GLX might weather the storm but always better to collect some profit or exit before liquidity dries up in the event of sudden change in market sentiment... it is always possible to re-enter at smaller risk.

In the meantime, BRW article dated 22-28 May 2008 titled "GAS BUSTERS" mentions GLX and BLK:
http://www.lincenergy.com.au/pdf/coverage-64.pdf

[Woody51]

Share your sentiments about the market generally and taking profits.

From what I have been able to glean, the rise in GLX is being driven by more than the 'Hotcopper types'. Heard there is a roadshow and some funds are getting set. Hope we are in the midst of a substantial re-rating. Hanging on to them all for now, but watching carefully.
Cheers.

[tommy]

GLX up 14%, GLXO up 31%... this is getting boring, it's only going straight up!!!!

[absolut-advance]

Don't worry Tommy, like a hang over the come down is on its way. Id take my chips off the table. Maybe thats just the past haunting me. But a dollar in the hand is better than two in the directors.

AA

[tommy]

Don't worry Tommy, like a hang over the come down is on its way. Id take my chips off the table. Maybe thats just the past haunting me. But a dollar in the hand is better than two in the directors.

AA

Hi AA,

I've already collected profits and free-carried now so not too fussed about it...

Once it reaches 20c, the dynamics will change because that is the option exercise price, only 4 cents to go! hehehe

[absolut-advance]

Well Done Tommy, I'm just ranting as "I don't know the details". However GLX is a swear word by my terms lol.
Even the sun shines on a dogs **** occassionally, management are crooks.

AA (DYOR I know nothing)

[gw]

The current glx board bears noooo resemblance to the ghosts of the past...it now has competent management and is in a hot sector.

Tommy,
What an enormous couple of days...like you I have recouped my investment and will be letting the rest ride. Appreciate your in depth analysis and informativr posts.

Regards

GW

[tommy]

The current glx board bears noooo resemblance to the ghosts of the past...it now has competent management and is in a hot sector.

Tommy,
What an enormous couple of days...like you I have recouped my investment and will be letting the rest ride. Appreciate your in depth analysis and informativr posts.

Regards

GW

Hi GW,

Good on ya mate, GLX may go up an down but at least you have preserved your capital now... the rest is gonna be pure PROFIT!! Love that word eh? This has got to be my quickest two bagger to date (although BLK might overtake it shortly...)

Let's hope the uptrend continues... glad you find my monologue entertaining :-)

As for AA's claim that "management are crooks", let the future decide... don't really care about unsubstantiated accusations based on lack of knowledge.

In the meantime, I am too busy making money, hehehe

[absolut-advance]

Well Done guys, seriously I don't know the facts as I havent looked into the new GLX.

All the best with it, hope you get my money back plus some.

AA

[tommy]

Well Done guys, seriously I don't know the facts as I havent looked into the new GLX.

All the best with it, hope you get my money back plus some.

AA

AA,

Sorry to hear you lost money on GLX... but if you are interested, the UCG sector is well worth researching as it is one of the hottest sectors at the moment.

Whether it is another uranium-type hype or a boom with a real backbone remains to be seen, but there is money to be made in this sector, of which GLX is a component.

[Woody51]

Tommy and team, hope someone had a look at Stellar (SRZ), up 30 percent since I posted the following on this thread:

"My two best (and safest) shortish/medium term bets, for the record, are miners: KGL and SRZ. These aren't fly-by-night specs. Genuine explorers, respected management, well backed, at bargain basement prices. Lot's of news pending. Not ramping, but people looking to park a bit of their profits could do worse than check them out. Time will be my judge."

Kentor (KGL) comes out of a trading halt tomorrow, following a capital raising, and latest gold assays will follow quite soon, I suspect. You'd have to think they'd be rippers, hoping anyway.

GLX seem to be consolidating. Happy to wait on this one. Cheers.

[tommy]

Sorry folks, I have been really busy working and haven't been able to contribute much this week... anyway, here is some good news!

Drilling of Coal Deposits commences in South Australia.


GulfX Limited (ASX: GLX), incorporating Syngas Limited, is pleased to announce the commencement of drilling within the Mineral Exploration Licence (MEL) 3896 held by the Company. MEL 3896 covers 288 square kilometres of South Australia’s Northern St Vincent Basin Coalfield and is located approximately 100 kilometres north-west of Adelaide.

The Company’s drilling program has been developed after collation, review and interpretation of 215 past drill holes across the Coalfield deposits covered by MEL 3896. Significant progress on the Syngas Coal to Premium Diesel Project in line with previously announced work and milestones is expected as a result of completion of drilling. The program is targeting securing JORC compliant resources, coal sample collection for laboratory analysis as well for laboratory scale gasification testing.

Drilling will be undertaken by Tom Browne Drilling Pty Ltd (Tom Browne), an experienced drilling contracting company. Tom Browne has successfully completed drilling contracts for a range of ASX listed companies in varied geological settings in the past and has a number of ongoing contracts around Australia.

Phase one of the drilling program is underway in the Clinton area. Drilling is expected to be completed at Clinton by the end of June 2008. Subsequent phases are currently being co-ordinated to follow at Whitwarta and Beaufort, within GulfX’s MEL 3896.

Core samples of coal/lignite collected during drilling will be sent to HRL Technology Pty Ltd (HRL) located in Melbourne, Victoria. GulfX has selected HRL as its analytical service provider based on HRL’s significant coal, specifically lignite, handling and analysis expertise and experience. HRL has been contracted to provide accurate, reproducible and robust proximate, calorific value and ultimate analyses for the drilling program as well as a range of other analytical services.

Coal/Lignite core collected during GulfX’s drilling program will also be used for laboratory scale test work further characterising the Syn(thesis) gas likely to be produced during gasification of the Clinton Coal Measures feed material and to more accurately defining coal to liquid (premium diesel) yields. This work is currently being scoped.


As announced on 12 May 2008, the entire GulfX drilling program is expected to consist of 37 drill holes comprising of confirmation holes on past drilling and some infill drilling. Each drill hole has been planned to an approximate depth of 100 metres, totalling an expected 3,700 metres of drilling. The primary purpose of this drilling program is to secure JORC compliance level resource tonnages over previously drilled coal deposits in the Northern St Vincent Coalfields held by GulfX, through drill core logging and appropriate analysis. Gasification sample collection is also planned.

Commencement of this drilling program represents a significant step forward for GulfX, towards achieving the Company’s resource and gasification milestones. These form part of GulfX’s overall twelve month work program, as set out in November 2007 as part of the Syngas Project acquisition.

Ends

About GulfX Limited
GulfX Limited, incorporating the Syngas Project following the acquisition of Syngas Energy Limited in January 2008, is an ASX listed oil and gas business with, as a core project, a premium diesel production project located in South Australia. GulfX also holds rights to earn interests in four gas prospects in the Gulf of Mexico. One of GulfX’s granted mineral exploration licences is over a 288 km2 area north-west of Adelaide, over known coal deposits across the Clinton Coal Measures, north of the Gulf of Saint Vincent. GulfX’s other granted mineral exploration licence is over a 143 km2 area, south-east of Adelaide over the known coal deposit of Moorlands.

For further information:
Merrill Gray
Executive Director – GulfX Limited incorporating Syngas Energy Limited.
B.Sc, B.Min.Tech, M.B.A., MAusIMM, AFAIM
Phone: (08) 9388 6725
Email: merrill.gray@syngas.com.au

[tommy]

GLX up a lazy 15% today, how boring... come on, you can do better than that :-P

[tommy]

GLX sell side looking really thin all of a sudden... this must be the LNC + MEE effect "trickling down" to the juniors!!!

Enjoy the ride!!

[tommy]

Ladies and Gents,

Strong close made the chart look like a beaut on increasing volume:

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aglx&draw.x=0&draw.y=0

I think this will fly tomorrow, keep a close eye on it...

When this closes above 20c, that is when the party will begin but we still have a fair way to go :-)

[Awamoa]

Someone is getting excited over this share today.Up 34% and over 5 million traded.
There dont appear to have been any announcements.
Anyone know anything?

[tommy]

Someone is getting excited over this share today.Up 34% and over 5 million traded.
There dont appear to have been any announcements.
Anyone know anything?

No idea mate, but I am back into holding on to those options... when a stock skyrockets on a bad day like this with such a huge volume, you know it is not only day traders getting excited about this stock.

Given that LNC wants to merge with SXP, I would not be surprised if someone decided to snap up GLX while on the cheap or at least build a stake in it (note: this is pure speculation, but always good to keep an open mind!)

[bermuda]

No idea mate, but I am back into holding on to those options... when a stock skyrockets on a bad day like this with such a huge volume, you know it is not only day traders getting excited about this stock.

Given that LNC wants to merge with SXP, I would not be surprised if someone decided to snap up GLX while on the cheap or at least build a stake in it (note: this is pure speculation, but always good to keep an open mind!)

Always wanted one of these plays. Might get it with BOW! ( yes, they are going to have a go )
I do like the UCG technology.