LONDON, April 13 /CNW/ -- KAL Energy, Inc. (OTC Bulletin Board: KALG) is
pleased to announce that in excess of 2,000 meters of drilling have been
completed on Phase 1 of the $2 million 5,000+ meter work program on its
Thermal Coal Project in East Kalimantan, Indonesia. This program includes
extensive drilling, trenching, sampling and mapping of known geological
structures, and exploration for unknown structures. This ongoing program is
located in KAL's concessions in East Kalimantan, Indonesia - a region noted
for its vast supply of thermal coal.
"After drilling more than 140 holes across the area of the known seams,
we are confident that the estimates of our geological team have been borne out
by the drilling. We can confirm that the initially reported seam of 4.5 meters
extends over a considerable area," stated Cameron Reynolds, Kal Energy's CEO.
The drill program currently taking place on KAL Energy's concession in
Indonesia is being conducted to determine the amount and quality of coal
available. Geological estimates have indicated that in excess of 192 million
tons of coal with low sulfur and ash content are located at shallow depths on
the concessions. As neighboring coal concessions have exhibited larger
reserves of coal than their prior estimates, KAL Energy may be able to
discover a greater quantity of coal reserves available on their properties.
Laboratory testing presently being undertaken on samples from the
concession will indicate the calorific value as well as the ash and sulfur
content of the coal located on KAL's concessions. As the calorific value of
coal represents the amount of potential energy stored in coal, higher values
command higher prices for exported thermal coal, especially when combined with
low sulfur and low ash content.
"We have undertaken a large amount of drilling on the known structures
and expect lab analysis results within 2 weeks", added Reynolds.
Indonesia recently surpassed Australia as the world's leading power
station coal supplier. Additionally, coal exports from this region have been
increasing due to increased demand. This increased demand is partially caused
by China's decision to cut its coal exports due to its increased domestic use.
There is also increased demand from markets such as India, who has increased
coal imports due to weakened domestic production, India is also planning to
have a number of new coal-fired power generation facilities up and running by
2009. With one of the world's largest thermal coal exporters Kaltim Prima
Coal (KPC) expected to produce 45 million tons of coal this year, as its
neighbor, KAL energy's concessions are in a region that is known for its
extensive open pit thermal coal producing mines.
About KAL Energy:
KAL Energy's wholly owned subsidiary Thatcher Mining Pte. has the rights
to several coal concessions situated near the Mahakam River in North Eastern
Kalimantan, Indonesia. This river is a main transportation system for
transporting coal to nearby markets. Consulting Geologist, Jonathan O'Dell,
has estimated that blocks 16 & 24 could contain more than 192,000,000 tons of
thermal coal. Today Indonesia is the leading exporter of thermal coal and
export prices vary from $30.00 to $60.00 plus per ton. For more information on
KAL Energy, Inc. please visit our web site at www.kalenergyinc.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is
defined in Section 27A of the United States Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Statements in this press release
which are not purely historical are forward-looking statements and include any
statements regarding beliefs, plans, expectations or intentions regarding the
For further information:
For further information: Cameron Reynolds, Chief Executive Officer of
KAL Energy Inc., 0207 487 8426, or fax, 0207 487 8402 Web Site: