Other Projects

Joint Venture with Green Power Energy Limited

Regal Resources has a Farm-In Agreement with Greenpower Energy Limited, through its wholly owned subsidiary MOL Gippsland Limited ("MOL"). The objective of the farm-in is to establish the existence of a resource of coal / carbonaceous material sufficient to support a commercial operation of the UCTL^TM process.

Green Power holds Exploration Licence 4860, and under the terms of the farm-in, the Company has the right to earn up to 70% of the Exploration Licence in return for a sub-licence of the UCTL^TM Technology.

Joint Venture Agreement with Enhanced Biogenic Methane Ltd

Regal Resources has entered into a Joint Venture Agreement with Enhanced Biogenic Methane Limited ("EBM"), which has an exclusive Australian licence to patented biogenetic methane enhancement (BME) technology from the Western Research Institute (WRI) of Wyoming.

The Company has granted EBM access to its Oak Park Pilot Test site to conduct a demonstration project (subject to regulatory approvals). EBM will invest $300,000 to fund a single well technology demonstration at Oak Park that is expected to commence during Q1 2010. Any methane produced from the use of the BME technology will be shared between EBM and Regal on a 50 / 50 basis.

The Technology

Biogenic methane enhancement (BME) involves speeding up the natural biogenic process that produces methane known as coal seam gas. Biogenic methane accounts for in excess of 20% of the total methane reserves on earth. Major sources include coal seam gas in the Surat Basin in Queensland and Powder River Basin in Wyoming, United States of America.

BME works by artificially stimulating the micro-organisms called methanogens that break down the coal structure and produce methane as a by product. BME technology works best on lignite (brown coal), low rank black coals and oil shale. This is because of their high volatiles and hydrogen content, which if all converted to methane would yield gas quantities 10 times that of traditional coal seam gas. As there are currently little economic applications for these asset classes and due to their abundance, the BME technology has the potential to be applied on many projects and many locations.

Application of BME is expected to be via the same drilling techniques used in the coal seam gas industry or via re-entering wells that are not economic or that have not been successful in previous coal seam methane testing.

One of the advantages of BME over coal seam gas is that the groundwater does not need to be extracted. Also, as only a small amount of the coal is converted to methane, there is no surface subsidence as can happen with underground mining or underground coal gasification. BME has been demonstrated to produce methane real time in both bench scale trials (lignite and black coal) and field tests (black coal).