Raisebook

Energy Development Project in Chile - Applying Technology to Coal Deposits to Produce Gas
Chaucer Energy Limited
Chaucer Energy Limited
Unlisted
  • In Situ Gasification (ISG) is a a process whereby stranded coal deposits, which are too deep for conventional open cut mining methods, can be utilised through the injection and ignition of a pressurised oxidant (such as air or oxygen/steam) to convert the coal to Syngas.
  • Syngas can then be burnt to produce electricity or converted by chemical processing into a number of products including urea and methanol.
  • Syngas production in Chile could reduce the current high dependence on imported coal and natural gas.
  • The Company has access to ISG technology that has been successfully used in a number of demonstration projects.
  • Chaucer has been granted a number of Exploration Mining Concessions in southern Chile which it considers likely to be suitable for the commercial development of an ISG project.
  • The company will be conducting an exploration project in order to identify a JORC compliant coal resource sufficient to support the development of a commercial ISG Power Project.
  • Raising $4.5-$5.5M at 20c for a $10.1M Enterprise Value on successful ASX listing
Raise Amount
$4,500,000
Offer Price
$0.2000
Closes
Nov 25, 2020

Chaucer Energy is pursuing the commercial development of an energy project in Chile, by the application of In Situ Gasification (ISG) technology to a suitable coal deposit to produce gas (referred to as Syngas).

This is initially for a power project, then subsequently for heating and conversion to a range of chemical/petroleum products.

The limited supply of fossil fuel energy sources in Chile has created challenges for the country in the past.

Electricity demand has doubled since 2000 and is set to more than double again by 2050, and consequently the Government is supportive of projects that add gas and power generation supply.

Firewood is the dominant energy source in southern Chile - as the wood is overwhelmingly burned undried in inefficient furnaces, it causes very serious local air pollution.

ISG is a process whereby stranded coal deposits, which are too deep for conventional open cut mining methods, can be utilised through the injection and ignition of a pressurised oxidant (such as air or oxygen/steam) to convert the coal to Syngas.

The Syngas produced by this project consists primarily of a mixture of methane, hydrogen, carbon monoxide and carbon dioxide, and can be burnt in gas engines or gas turbines to produce electricity, or converted by chemical processing into one of a number of products such as urea or methanol.

The Company has access to ISG technology developed by its partner Ego Energy Technologies. This technology has been successfully used in a number of demonstration projects.

The Company has entered into a Technology License Agreement with Ergo Energy pursuant to which Ergo Energy agrees, amongst other things, to make its proprietary ISG technology available to the Company under license.

The Company has undertaken a comprehensive review of Chile's coal basins and, at the date of this Prospectus, has identified three potential project areas in southern Chile that it wishes to evaluate further.

Chaucer Energy has been granted Exploration Mining Concessions over 4,100 hectares of land near the town of Maullin (the Maullin Project area), and also over two other separate areas in the Magallan Basin – 8,200 hectares at Rio Perez (the Rio Perez Project area) and 6,900 hectares on Isla Riesco (the Isla Riesco Project area).

The Company believes that it has acquired the most prospective areas in the country for the application of the ISG process.

Selection of the Company's project areas has been made on the basis of data from oil and gas wells, nearby drilling data, seismic and gravimetric surveys and from coal outcrop exposures as described in the Independent Geologist's Report contained in Section 11 of this Prospectus.

Subject to identifying a suitable coal deposit, and to satisfactory feasibility studies, relevant approvals, and further funding, the Company intends to develop a phased commercial ISG Power Project, initially starting with 3MW of electricity production.

Funds raised under this Prospectus will be used to undertake an exploration program with the objective being to identify a JORC compliant resource on the Maullin Project area, and also to confirm whether a coal deposit might exist on at least one of the Rio Perez Project or Isla Riesco Project areas.

The Offer

Chaucer Energy Ltd (ACN 610 613 048) is seeking to raise a minimum of $4,500,000 and a maximum of $5,500,000 through the issue of shares at an issue price of $0.20 per Share.

The offer of the securities are made in, or accompanied by, a copy of the Disclosure Document which can be obtained by clicking on the "ACCESS DISCLOSURE DOCUMENT" button on this page.

Pulse Markets and Baker Young Limited are acting as Joint Lead Managers to the IPO.

Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the Disclosure Document.

Before making an investment decision, potential investors should read the Disclosure Documents entirely, and seek professional financial advice.

Investors should be aware that there are risks associated with an investment in this Company.

To date, insufficient drilling has been undertaken to define a JORC compliant coal resource within any of the project areas and further exploration needs to be undertaken to confirm the viability of implementing a commercial ISG project.

A complete set of risks associated with an investment in the Company is included in Section 7 of the Disclosure Document. Investors should consider those risks carefully in deciding whether to invest in the Company.

Capital Structure

Shares Minimum Subscription % Maximum Subscription %
On issue as at the date of this Prospectus 49,167,500 67.20 49,167,500 62.90
To be issued under the Offer 22,500,000 30.75 27,500,000 35.18
To be issued pursuant to existing agreements 1,500,000 2.05 1,500,000 1.92
Total 73,167,500 100 78,167,500 100

Indicative Timetable

Event Date
Closing Date for the Offer 25 November 2020
Allotment Date 9 December 2020
Despatch of holding statements 10 December 2020
Expected date for quotation on ASX 15 December 2020
This deal closed on November 25, 2020