Carbon Energy (ASX:CNX,OTCQX:CNXAY), and its joint venture (JV) partner, Beijing JinHong Investment Co. Ltd (JinHong) agree to monthly, pre-paid service fees to expedite progress of pre-JV activities following the JV’s first strategic workshop in Beijing, China.

The agreement to pre-payment of service fees secures the Company an initial monthly cash flow for its contribution to JV specific activities required while the JV awaits Chinese Government approval. This approval process remains on-track with all documentation lodged with the relevant authorities and approval expected in the coming months.

In addition to the agreement of monthly pre-paid service fees, the JV also agreed its key priorities for the short-term. These include:

• securing a suitable coal field;
• engaging the in-country engineering and construction contractor;
• contracting an in-country drilling company; and
• commencing pre-engineering works.
Progress has been made in the following areas since entering into the JV Agreement:
• CNX Shareholder approval for entering into the JV Agreement;
• Pacific Road consent gained as required under the Convertible Note Facility;
• lodging the JV registration documents in China;
• setting the JV’s strategic plan and priorities;
• assessing data of a number of coal field’s for potential site suitability;
• setting up an office in Beijing, China for the JV; and
• filling key roles in the Joint Venture management team.

The JV working party is committed to ensuring the initial project commences as soon as possible.