LNC 0.00% 99.5¢ linc energy ltd

overview

  1. 54,412 Posts.
    lightbulb Created with Sketch. 147
    A COMPANY STEEPED IN CLEAN COAL TECHNOLOGY

    Sydney - Wednesday - November 19: (RWE Aust Business News)
    **********************************************************

    OVERVIEW
    ********

    Linc Energy Ltd (ASX:LNC) is an innovative, forward-thinking
    energy company and Australia's leader in clean coal technology.
    The company has begun work on bringing together two proven
    production processes known as Underground Coal Gasification (UCG) clean
    coal technology and Coal To Liquids (CTL).
    These processes have the potential to economically convert
    Queensland's vast "stranded" coal deposits into ultra clean liquid fuels.
    By combining these two innovative processes Linc is poised to
    become a leading producer of these products both in Australia and across
    the world.
    Linc may also use the syngas produced from UCG as feedstock for
    gas turbines to generate much needed and more environmentally friendly
    electricity.
    Linc Energy says it represents a new future for liquid fuels
    production and power generation.
    The world may face an energy crisis in the not too distant future
    as a direct result of the rapidly depleting global reserves of oil.
    Many leading industry analysts believe that world oil production
    is about to peak and that alternative sources of energy other than crude
    oil must be found.
    This is the key to the company's vision.
    It has a unique leading-edge capacity to potentially provide a
    viable, more sustainable and smart alternative source of liquid fuels and
    power generation well into the foreseeable future.
    This week, Linc Energy announced that it will begin drilling key
    oil opportunities identified from the recent seismic program which shows
    at least 18 prospects and leads with a priority target area of eight
    drilling locations.
    Linc Energy will commit to about 10 to 15 oil exploration wells
    within the Arckaringa Basin in South Australia, with an initial budget of
    $9 to $10 million.
    The company is in negotiations with a North American drilling
    exploration company based in Texas, with the aim that a drilling
    contractor will be on site by second quarter of next year to commence the
    program.
    Whilst Linc Energy purchased the SAPEX assets for their coal
    potential, the exploration licences hold some excellent petroleum
    opportunities which have a high potential value.
    Either as a straight asset sale or as a profit share arrangement,
    the bottom line for Linc Energy shareholders is that such a valuable
    asset needs to be developed to a point that the company can start to book
    some of that value to the balance sheet, either as cash or as a developed
    asset producing cash flow.
    With that driving premise, Linc Energy will aim to commence
    drilling the Arckaringa Basin for petroleum opportunities in the second
    quarter of next year, with the program taking about 12 to 18 months to
    complete.
    The company should have some excellent early indications of what
    the Arckaringa Basin is capable of producing by early in the fourth
    quarter of next year.
    Peter Bond, Linc Energy's chief executive officer, said "We know
    we have a great asset in what has been obtained via the SAPEX merger but
    the oil exploration was always potentially a significant bonus for the
    shareholders.
    "I have no other way of unlocking that potential to a point of
    solid value without drilling the Arckaringa Basin and frankly, the faster
    Linc Energy can drill the area and the more aggressive the initial
    program is, the more likely we are going to be successful.
    "This is a very exciting opportunity for Linc Energy and with
    drilling costs decreasing and availability of people and equipment
    'freeing up', this is a very good time to commence as it sets the company
    up nicely for when oil prices recover," Mr Bond said.

    SHARE PRICE MOVEMENTS
    *********************

    Shares of Linc Energy yesterday rose 6c to $2.83. Rolling high
    for the year is $5.39 and low 48c. The company has 405.2 million shares
    on issue with a market cap of $1.15 billion.
    Last week, Linc Energy confirmed a JORC resource of 1.69 billion
    tonnes of coal in its South Australian tenement areas EL3325 and EL3326,
    held by subsidiary SAPEX.
    It reported an exploration target upgrade to a range of seven to
    nine billion tonnes for the two tenements, representing less than 5 per
    cent of the total exploration area.
    The company is continuing with a 40-hole drilling program of
    cored holes totalling approximately 12,000 metres.
    To date a total of 12 cored holes totalling 3,502 metres have
    been completed.
    The 40 exploration cored drill holes are designed to intersect
    all the main coal seams and build upon the existing 93 exploration holes
    drilled by previous explorers.
    The data will be used to further enhance the company's current
    resource statement from Inferred to Indicated status in accordance with
    the JORC Code and also to further increase and define the extent of the
    coal basin.
    Drilling completed continually intersected the Permian Mount
    Toodina formation which contains five to nine coal seams with a
    cumulative thickness of 10 to 26 metres of thermal coal.
    In June 2007 Geos Mining provided SAPEX with a resource statement
    for EL3325 East Wintinna in accordance with the JORC Code and a further
    resource statement in accordance with the JORC Code in August 2007 for
    EL3326 Weedina.

    BACKGROUND
    **********

    Linc Energy was listed on the Australian Securities Exchange on
    May 10, 2006.
    Its vision is to become a dominant player in the supply of more
    environmentally friendly power, diesel and jet fuel.
    Linc Energy aims to achieve this vision by bringing together, for
    the first time anywhere in the world, UCG, clean coal technology and CTL.
    These processes will economically convert vast "stranded" coal
    deposits into ultra clean liquid fuels.
    Linc Energy will also use the syngas produced from UCG clean coal
    technology as feedstock for gas turbines to generate environmentally
    friendly electricity.
    The company has a unique leading edge capacity to provide a
    viable, more sustainable and smart alternative source of liquid fuels and
    power generation well into the foreseeable future.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.