RG Global inks deal to process coal bed methane discharge water in Australia

June 3, 2009
RG Global has signed a deal with World Environmental Solutions of Australia for exclusive representation in the coal bed methane (CBM) industry, or Coal Seam Gas (CSG) as it is known in Australia.

UPLAND, CA, June 2, 2009 -- RG Global is pleased to announce that it has signed a deal with World Environmental Solutions of Australia for exclusive representation in the coal bed methane (CBM) industry, or Coal Seam Gas (CSG) as it is known in Australia, and utilization of RG Global's proprietary DynIX™ technology.

In good faith, World Environmental Solutions has already completed several progressive negotiations with key Australian CSG players and, upon submitting a proposal for the adoption of the DynIX™ system, is preparing to enter into an agreement with one of them.

"This deal will serve as a pivotal tool in expanding RG Global's DynIX™ technology into the ever growing CSG industry of Australia," said Grant King, RG Global's CEO and President. "Australia is in the midst of a Coal Seam Gas rush, led by major industry players such as the BG Group of the UK, Petronas of Malaysia and ConocoPhillips of the USA. They are taking advantage of rapidly emerging opportunities to supply coal-bed/seam methane gas to the lucrative Asian markets."

Traditionally Australian gas producers have been allowed to dispose of water cheaply in large evaporation ponds. Long droughts in Australia and environment concerns have meant employing other treatment systems such as reverse osmosis (RO) plants. Water recovery in these plants is an expensive process and is limited to a 70% recovery rate. The leftover regenerate waste presents producers with a major problem, given that the government now requires significant reductions in waste and improved discharge water quality. Regulations have also been submitted requiring gas producers to treat the CSG water for a variety of agricultural purposes, in addition to augmenting local municipal water supplies. Much of the associated expense to process the CSG discharge water will be borne by the CSG producers.

Gas extraction is a relatively simple process. However, the massive amount of water that must be extracted to remove the gas poses a major problem for producers. Solving this issue is paramount in enabling the industry to move forward and profit from the large Asian gas markets. Another benefit of RG Global's DynIX™ technology is it can be used as a standalone process or as a pre-treatment in optimizing economic and operational viability of existing RO facilities. Using DynIX™ results in increased recovery rates, lower regenerate waste and reduced operating costs.

Keith Morlock, RG Global VP Business Development, said, "In order to successfully market our water treatment and CFS technology worldwide, we needed a name that not only encompassed the variable systems utilized but would better represent the technology that our system is based on. Our Dynamic Ion Exchange, now branded as DynIX™, enables RG Global to handle not only the increased global demands for clean water but the unique water analysis that presents itself at each region. The DynIX™ system is a cost effective alternative that has succeeded in significantly improving water recovery rates and reducing regenerate waste, compared to expensive and less efficient reverse osmosis (RO) systems."

Recently the BG Group struck a deal with the State-owned China National Offshore Oil Corporation (CNOOC), who agreed to purchase 3.6 million tons per annum (Mtpa) of liquid natural gas (LNG) for 20 years from the start-up of the BG project. Furthermore they will convert the additional Coal Seam Gas into LNG. The project is valued at $8 billion and is planned to start in early 2010. It has also been reported that Santos will develop one of Australia's largest forestry plantations by planting over 2 million native trees in an effort to use the water (over 30 Olympic-sized swimming pools a day) that will come from its CSG fields in Queensland.

The vast majority of coal seam gas in Australia, is located in the Surat and Bowen Basins in Queensland. It has been estimated that as many as 25,000 wells will be drilled in these areas. The expected annual rate of CSG water production in the Surat Basin alone is 25 gigalitres. The quantity of this highly saline water is considered an environmental risk by the Queensland Government and has given rise to their recent introduction and imposition on gas producers of stringent CSG water management plans and practices.

RG Global Lifestyles Inc. develops and markets innovative technologies for water purification and wastewater treatment.


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