Following are some highlights of Asia Energy’s rise in the share market as reported by Neil Hume and Richard Wray in the business page of The Guardian, UK. It’s a compilation from 11 separate reports that spanned nearly two years – 16 October 2004 through 30 August 2006 (today).

It will open your eyes on how so many entities were on the get-rich-quick scheme – entirely based on the finding of quality coal in Phulbari.
It’ll help you understand why Asia Energy had been relentless in their pursuit in Phulbari…

Saturday October 16, 2004, Guardian

….Asia Energy, a company floated on AIM in April with a view to conducting “feasibility studies on coal resources within the republic of Bangladesh”.

Fringe broker W H Ireland raised £11.2m at 72p a share, giving an initial total market capitalization of £25m.

The stock sat just above the placing price until last month, when the company suddenly announced the discovery of a “world-class black bituminous coal seam 41.47 meters in thickness”.

A follow up statement declared: “Based on a 15m-tonne per annum coal operation, the cash-flow analyses indicate an average ungeared, post-tax project net present value (NPV) of $2.3bn using a discount rate of 10% and an average internal rate of return (IRR) of 50%. Coal production could start as early as 2007 with start-up capital to the second year of production of approximately $530m.”

…….. It is nevertheless eye-catching that Asia Energy should suddenly appear on the London market during the biggest mining rush in over a decade and then hit a huge strike within months of listing.

Friday January 14, 2005, Guardian

Asia Energy, which is developing the Phulbari coal project in Bangladesh, leapt 76p to 542.5p after Evolution Securities (broker) said its shares could be worth as much as £12.50. “Testing of coal quality at the Phulbari project has demonstrated that a significant proportion of the coal is suitable for sale as a soft coking or pulverised injection coal. This underpins the $2bn valuation placed on the project,” said John McGloin, an analyst. Asia Energy’s current market value is just under £210m.

Friday March 4, 2005, Guardian

Its (Asia Energy’s) shares have risen almost 10-fold since flotation in April 2004 amid claims that its Phulbari coalfield in Bangladesh is a world-class mine.

The shares gained a further 123p to 776.5p yesterday after Cazenove, recently appointed as the company’s joint broker, started coverage with an outperform rating and a prediction that Asia Energy could produce earnings of 478p-a-share by the time the mine is fully operational in 2012.
Cazenove notes that this would make Asia Energy eligible for a place in the FTSE 100.

Traders said the stock had been supported by US buying. Company officials are in New York seeing mutual funds in a road show organized by its other broker, Evolution Securities.

Friday March 11, 2005, Guardian

Asia Energy rose 10p to 880p after Evolution Securities repeated its buy recommendation and £15.80 target price.

The move came in the wake of news that Tata, India’s second biggest steel maker, wants to buy a mine to secure a supply of coal for its operations in eastern India. Evolution analyst John McGloin says if Tata wants to buy a coking coal supply, it must have looked at Asia Energy’s Phulbari site in Bangladesh.

Saturday April 2, 2005, Guardian

Asia Energy jumped 27.5p to 785p after the company said the Bangladesh’s department of the environment had granted approval for its Phulbari coal project.

The decision paves the way for Asia Energy to seek formal government approval for the project. The company plans to start production at Phulbari in 2007 and some analysts believe the mine could produce 15m tonnes of a coal a year for the next30 years.

Tuesday April 26, 2005, Guardian

Asia Energy, one of the Aim market’s most widely followed stocks, was under pressure yesterday amid talk that its advisers have been sounding out shareholders about a potential equity fundraising.
Asia Energy has been one of the biggest success stories of the recent commodity boom. Its shares have risen 825% since their flotation a year ago amid excitement about the potential of its huge coal project in north-west Bangladesh.

The shares eased 20p to 695p yesterday amid talk that a couple of institutions had been approached to see if they would back a £70m-£80m fundraising at 570p.

In a research note, Cazenove, one of Asia’s two brokers, said the company would have to raise $600m (£315m) to bring the coal project, named Phulbari, on stream.

The broker said it expected 75% of the money to come from the debt market and the balance from a share placing, which would probably happen some time this year. With the bubble in resource stocks starting to deflate, dealers would not be surprised if Asia was seeking to raise cash sooner rather than later.

Friday May 27, 2005, Guardian

Informed City sources believe it (Asia Energy) is about to announce that its huge coal field in Bangladesh is over 20% bigger than previously thought.

Earlier this month, the company said it had extended its drilling programme because coal had been found over an additional 3.5 kilometres to the north and south of the original basin limits. The deposit, called Phulbari and situated close to the Indian border in north-west Bangladesh, is estimated to contain over 400m tonnes of high grade coal.

Tuesday August 2, 2005, Guardian

Shares in Asia Energy gained 12.5p to 593.5p as traders said that Goldman Sachs - which already has more than 3% - is seeking to increase its stake still further. There was also talk that production at the company’s coal project in Phulbari, north-west Bangladesh, is up more than 20%.

Friday August 5, 2005, Guardian

After much speculation in recent days, coal producer Asia Energy yesterday confirmed that its coal reserves at Phulbari in north-west Bangladesh have increased to 572m tonnes from the previously stated 522m. Shares in the company increased 57.5p to 692.5p.

Thursday December 22, 2005, Guardian

Mr Lenigas (Australian mining veteran) is known in the City for bringing Asia Energy - developer of the huge Phulbari coal mine in Bangladesh - to market. Asia Energy, off 40.5p at 359p yesterday, has been one of the best-performing mining stocks on Aim since it floated at 75p in April 2004.

Today’s Report in Guardian:::

Randeep Ramesh, south Asia correspondent
Wednesday August 30, 2006

Bangladesh faces a nationwide strike today following the fatal shootings over the weekend….
Six died and 300 were injured in the violence. The deaths have led to days of rioting,….
…. …..
… According to company officials in London the committee, which has demanded the mine be stopped, had been described by Bangladeshi ministers in talks with Asia Energy as an “obscure leftwing group (behind) the rioting”.
David Lenigas, a director of Asia Pacific, told the Guardian that the protests were orchestrated by a “vocal minority with extreme ideas against foreigners putting money into these projects”.