Carbon Energy has received an independent expert valuation of its Surat Basin gas assets. The valuation was conducted by Xstract Mining Consultants, an internationally recognised resource and asset evaluator who have valued the Company's in situ gas assets between $91m and $600m, with a preferred valuation of $205m.

The independent expert has fully risk weighted its valuation being cognisant of the current policy regime as it pertains to underground coal gasification (UCG) development, in addition to the likely capital costs to bring the Blue Gum Gas Project into production. Should either of these key risks be resolved Xstract considers there would likely be a sizable uplift in the valuation.

Of significance, the valuation has been undertaken prior to a Queensland Government decision around the future of UCG in Queensland.

Tags: Carbon Energy Limited