LNC - Linc Energy

[Calliope]

Interesting interview with Peter Bond. One thing I noticed was almost the complete downplay of the CSG process. Seemed to suggest there just might not be enough money in it.

And yet the whole SA deal is based around building a 300-500 MW power station fueled by CSG. And perhaps even using alkaline fuel cells.

Maybe he is just playing possum at the moment.

Bond will have plenty to worry about when the Greens get the balance of power in the senate. Anything to do with coal is an anathema to the Greens, no matter how clean the technology is.

The Greens say the South Australian Government is taking a big backward step by promoting technology to turn coal into liquid fuels.

Linc Energy, which calls itself a clean coal company, plans to set up fuel refineries in the Arkaringa area of South Australia's far north.

The SA Government says that will create jobs.

Greens MP Mark Parnell thinks it will produce more greenhouse gas pollution.

"South Australia has always claimed leadership with renewable energy and with clean energy. This is a huge step backwards," he said.

"It's a dirty project that South Australia should not be supporting."

ABC News

 

[Mickel]

On ABC Radio 612 am very shortly (after 10.30am) Professor Chris Moran ( a UQ Professor in Centre for Water in Minerals Industry) will answer questions on UCG.

 

[luckypaul]

Latest Limelight Presentation from Rockhampton now out.

http://www.brr.com.au/event/67577/linc-energy-limelight-series-rockhampton

These always clarify many issues and well worth listening to. Enjoy!

 

[basilio]

Bond will have plenty to worry about when the Greens get the balance of power in the senate. Anything to do with coal is an anathema to the Greens, no matter how clean the technology is.

The Greens say the South Australian Government is taking a big backward step by promoting technology to turn coal into liquid fuels.

Linc Energy, which calls itself a clean coal company, plans to set up fuel refineries in the Arkaringa area of South Australia's far north.

The SA Government says that will create jobs.

Greens MP Mark Parnell thinks it will produce more greenhouse gas pollution.

"South Australia has always claimed leadership with renewable energy and with clean energy. This is a huge step backwards," he said.

"It's a dirty project that South Australia should not be supporting."

There will have to be some good explanations by Peter Bond and LNC on the environmental credentials of UCG. Actually I fundamentally agree with The Greens position on needing non polluting renewable energy for long term sustainability. LNC's position/argument is

1) We face a critical shortage of oil based fuels in the next few years and Underground Coal to Oil technology is probably the only way to prevent a very sticky end to our current economic system

2) The UCG process can capture CO2 more easily and thus produce electricity with far less greenhouse gas than other coal fired or even natural gas fired power stations

3) Their UCG techology is well sorted out and they will not be causing damage to underground water supplies or creating subsidence . (fingers crossed here...)

4) The Alkaline Fuel Cell technology will be a brilliantly elegant solution to producing totally carbon free electricity.

5) (Sotte voce There is a truck load of money in this deal. we want it..).

Even if The Greens have the balance of power I couldn't see how they could stop any government approving UCG-GTL plant if all the environmental considerations are ticked off. I think the energy security issue alone would tip the scales

 

[Mickel]

Was anything mentioned about power generation and the role of the Alkaline Fuel Cell in producing clean electricity ?

Thinking more about why not much was said about power generation and nothing about AFC. The televised interview was reasonably short considering that there is so much happening with LINC. I think PB would have mentioned power generation with the AFC as it is so exciting and very environmentally friendly.

Perhaps the ABC edited it out because of time constraints or for some other reason?????

 

[dogeatdog]

Bond will have plenty to worry about when the Greens get the balance of power in the senate. Anything to do with coal is an anathema to the Greens, no matter how clean the technology is.



ABC News

Are the "Greens" Likely to get the "balance of power" in the Australian senate?

What other "Green" alternatives are out there, that can provide the future requirements for the worlds reliance on fossile fuels?

Ten years at the Chinchilla site must portray Linc are doing something right?
Credit where credits due

 

[Calliope]

Are the "Greens" Likely to get the "balance of power" in the Australian senate?

Almost certainly. Without Green preferences Labor has no chance. They have to kow tow to the Greens

What other "Green" alternatives are out there, that can provide the future requirements for the worlds reliance on fossile fuels?

Not in our lifetime.

Ten years at the Chinchilla site must portray Linc are doing something right?
Credit where credits due

I still hold shares in Linc, but I sold off the bulk of my shares (40,000) when I saw the writing on the wall when Linc moved the bulk of their operations to S.A. hoping to escape the environmentalists.

 

[Mickel]

A new Limelight series presentation with Justyn Peters and Matt Buchanan held at Mackay Qld on 30 July. They discuss the UCG environment and refer to the Cougar Energy situation. Justyn mentioned that they offered technical assistance to Qld Govt to help manage the situation at Kingaroy if required. It is 75 minutes in length and I haven't listened to all of it yet.

http://www.brr.com.au/event/67577/linc-energy-limelight-series-mackay?popup=true&wl=76

Regarding my earlier post today on the radio interview with Prof Chris Moran, it was mentioned that he is the Chair of a 3 person panel set up by Qld Govt to review the UCG process with particular regard to the environment.

He gave an overview of the UCG process and answered questions from the interviewer only. In my view the main point is that his report will take at least 18 months to finalise.

 

[Mickel]

Further to my last post on the latest Limelight presentation, one other main point that Justyn made was that there were many approaches from companies/governments around the world to license their IP on UCG and GTL technology.
They are particularily concerned about doing this in China and Russia because of the security issues with their IP. At this stage, it won't happen anywhere in the short term.

I'm not sure if this has been mentioned before in this forum, but there is much work being done regarding carbon sequestration in depleting oil wells which helps to extract more oil while successfully sequestrating commercial quanities of CO2.

One such trial is in Wyoming (yes of all places where LNC has major coal tenements) -
"CCS world projects: Teapot Dome

The Department of Energy's (DOE) "Teapot Dome" oil field in Wyoming will anchor a pioneering scientific venture that ultimately could prove one option of large-scale, region-wide carbon sequestration. The project will be managed by DOE's RMOTC, which operates the Teapot Dome oil field. In managing the project, RMOTC will link the concepts of carbon sequestration and enhanced oil recovery (EOR) through under-ground injection of CO2 into older fields to boost production that has declined. The potential carbon sequestration of the project is anticipated to be at least 2.6 million tonnes of CO2 annually with a concurrent rise in related oil production of about 30,000 barrels a day, almost six times the current production level. CO2 injection began in 2006 and is to continue for seven to 10 years."

and another is in the Otway project in Western Victoria.

Check out both at - http://www.co2crc.com.au/demo/teapot_dome.html

Also I note that there is a Public Seminar on Carbon Sequestration at the Uni of Adelaide on Sept 1.

Very interesting trials indeed and have huge potential for LNC imho.

 

[basilio]

The cheque has been cleared. $500 m in the bank. $2.5 bill more in the future. Plus other coal sales in the pipe line..

But LNC's shares still fell by up to 9.5cents today. Just shows that in a very fragile, touchy market sentiment rules even over dollars.

I'd like to see Peter Bonds plans to "depression-proof" LNC. I think LNC is in the extremely rare company situation where it could hold sufficient operating and investment funds to last until the certain operation of a cast iron essential product - diesel fuel

We don't want to say it too loudly but I'm sure many investors fear that the current recession in Amercia may get dramatically worse and that the consequences for most stocks that naturally rely on current sales to stay to profitable could be disastrous. Be great to have LNC out of that loop.

 

[basilio]

What an astounding performance by LNC today.

It open at $1.99 drops to S1.92-4 settles for 45 minutes and then does a swan dive to $188.5. And this after the successful, wonderful Gailee coal sale.

At around 12.45 LNC announces that the $500 m cheque has been cleared. All sold. All silent. GREAT !!

So another surge in the next 20 minutes to $1.99 seemingly on the strength of this excellent confirmation.

And then...From 1.30 to 4.15 it just keeps falling, falling, falling from $1.99 to finish with a sale of 670,000 shares at $1.86.

I'm just so glad they didn't bank the full $2 billion or they would have been wiped off the bourse.

Any thoughts on this ?

 

[Slipperz]

What an astounding performance by LNC today.

It open at $1.99 drops to S1.92-4 settles for 45 minutes and then does a swan dive to $188.5. And this after the successful, wonderful Gailee coal sale.

At around 12.45 LNC announces that the $500 m cheque has been cleared. All sold. All silent. GREAT !!

So another surge in the next 20 minutes to $1.99 seemingly on the strength of this excellent confirmation.

And then...From 1.30 to 4.15 it just keeps falling, falling, falling from $1.99 to finish with a sale of 670,000 shares at $1.86.

I'm just so glad they didn't bank the full $2 billion or they would have been wiped off the bourse.

Any thoughts on this ?

Our LNC can be a dangerously volatile stock to trade.

I've had my greedy little fingers burned in the past.

Not too fussed on daily flucuations at the moment. I have divested my trading parcel at a tidy profit and am holding the rest with a two to three year horizon.

Once the other asset sales are finalised, the Alaskan wells are drilled and a jv partner for the gtl plant is signed up look out!

Actually heard a whisper Vale might be in on this as a jv partner....

http://www.smh.com.au/business/vale-has-barely-scraped-surface-20100809-11u5a.html

 

[Mr Z]

The cheque has been cleared. $500 m in the bank. $2.5 bill more in the future. Plus other coal sales in the pipe line..

But LNC's shares still fell by up to 9.5cents today. Just shows that in a very fragile, touchy market sentiment rules even over dollars.

That is quite normal, buy the rumor and sell the fact, hopefully it will be a short pause around the $2 level. I am targeting $2.50 in the short/mid term where I think we should take a good break. We will see how quickly they can back this up with more good news! Its been a bit of a torrent of bad news so far this year, generally speaking, but oil is looking up and I think energy in general is due for some market attention soonish --> JMO.

 

[dogeatdog]

What an astounding performance by LNC today.

It open at $1.99 drops to S1.92-4 settles for 45 minutes and then does a swan dive to $188.5. And this after the successful, wonderful Gailee coal sale.

At around 12.45 LNC announces that the $500 m cheque has been cleared. All sold. All silent. GREAT !!

So another surge in the next 20 minutes to $1.99 seemingly on the strength of this excellent confirmation.

And then...From 1.30 to 4.15 it just keeps falling, falling, falling from $1.99 to finish with a sale of 670,000 shares at $1.86.

I'm just so glad they didn't bank the full $2 billion or they would have been wiped off the bourse.

Any thoughts on this ?

Equally confused basilio.
The Linc sp is certainly sailing against the wind for some strange reason.
I seem to remember you memtioning the words "Rigged game"

 

[ChrisV80]

Our LNC can be a dangerously volatile stock to trade.

I've had my greedy little fingers burned in the past.

Not too fussed on daily flucuations at the moment. I have divested my trading parcel at a tidy profit and am holding the rest with a two to three year horizon.

Once the other asset sales are finalised, the Alaskan wells are drilled and a jv partner for the gtl plant is signed up look out!

Actually heard a whisper Vale might be in on this as a jv partner....

http://www.smh.com.au/business/vale-has-barely-scraped-surface-20100809-11u5a.html

Interesting... very interesting !

The sooner they get a JV partner the better, it might be some time away before the gtl plant is built but it will hopefully be worth the wait for us all.

 

[ChrisV80]

Our LNC can be a dangerously volatile stock to trade.

I've had my greedy little fingers burned in the past.

Not too fussed on daily flucuations at the moment. I have divested my trading parcel at a tidy profit and am holding the rest with a two to three year horizon.

Once the other asset sales are finalised, the Alaskan wells are drilled and a jv partner for the gtl plant is signed up look out!

Actually heard a whisper Vale might be in on this as a jv partner....

http://www.smh.com.au/business/vale-has-barely-scraped-surface-20100809-11u5a.html

Just reading the article again.. and got to this paragraph.

''Vale now has an energy department as well. Before, it was about covering our cost of energy, but now it looks like it is going to be a business. We are trying to develop some technologies around coal to liquids, including a pilot plant in Mozambique and maybe Australia"

Sounds to me they might setup their own gtl pilot plant rather than JV, they obviously have the money to do it? what do you think??

 

[Calliope]

Equally confused basilio.
The Linc sp is certainly sailing against the wind for some strange reason.
I seem to remember you memtioning the words "Rigged game"

There is nothing rigged about it. You will notice that there are many more sellers than buyers.

The sellers are taking every opportunity to bale out when there is a price jump. Many of them would be day traders.

 

[Slipperz]

Just reading the article again.. and got to this paragraph.

''Vale now has an energy department as well. Before, it was about covering our cost of energy, but now it looks like it is going to be a business. We are trying to develop some technologies around coal to liquids, including a pilot plant in Mozambique and maybe Australia"

Sounds to me they might setup their own gtl pilot plant rather than JV, they obviously have the money to do it? what do you think??

They would definitely have the capital, but do they have the technology?

The synergy between the two is obvious.

Personally I would of thought if anyone was coming on board it would be BP seeing as they have agreed to buy 70% of everything LNC can refine.

We'll have to wait and see I guess but with the cash in the bank now LNC is ready to move forward and make it happen.

Any jv would have to be on favourable terms to LNC or we can just monetise the royalty stream from Galillee and go it alone.

Presuming the SA plant is the first built

Maybe the Powder River basin in the US might be first off the ground with a US partner?


I bet there are some interesting discussions in the LNC boardroom at the moment!

 

[Mr Z]

There is nothing rigged about it. You will notice that there are many more sellers than buyers.

The sellers are taking every opportunity to bale out when there is a price jump. Many of them would be day traders.

I was loading up around a $1! I unloaded a bunch in the $1.9x area and now have a free position in LNC. It is just logic... I bought the rumor and this time is turned out to be true... then I sold the fact! If the selling here gets too silly I will probably be a buyer again knowing/hoping that more good news is probable. Day trader, no! Position trader... yes!

In the wider time frame I love the LNC story, these guys are going places IMO.

 

[basilio]

It is intriguing that there still many more sellers than buyers for LNC. On pre opening it looks as if there will be further falls. Obviously the broader market is looking pretty sick but I would have thought that there would be a revaluation of LNC's future after completion of the first coal sale and just looking at the cash backing for the shares.

Perhaps another great buying opportunity ?