LNC - Linc Energy

The Shareholder information set out below was applicable as at 17 September 2010.

Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted equity securities are listed below: Ordinary shares
Name Number held
Percentage of
issued shares
1. Newtron Pty Ltd (Peter A Bond Fam No 3 A/C) 184,173,904 37.10%
2. HSBC Custody Nominees (Australia) Limited 29,938,557 6.03%
3. Citicorp Nominees Pty Limited 24,604,386 4.96%
4. JP Morgan Nominees Australia Limited 20,577,168 4.15%
5. National Nominees Limited 18,796,600 3.79%
6. UBS Wealth Management Australia Nominees Pty Ltd 11,260,550 2.27%
7. J P Morgan Nominees Australia Limited 11,208,603 2.26%
8. Marubeni Coal Pty Ltd 7,371,000 1.48%
9. Perpetual Custodians Limited 7,324,831 1.48%
10. Newtron Pty Ltd (Peter Adam Bond Family A/C) 5,750,000 1.16%
11. WK Prospecting Pty Limited 5,111,900 1.03%
12. Steven Fierro 4,847,005 0.98%
13. HSBC Custody Nominees (Australia) Limited – GSCO ECA 4,294,998 0.87%
14. ANZ Nominees Limited 2,846,196 0.57%
15. Bond Street Custodians Limited 2,716,659 0.55%
16. CS Fourth Nominees Pty Ltd 2,483,470 0.50%
17. Mr Mark Andrew Tomkins 2,285,000 0.46%
18. Perpetual Trustree Consolidated Limited 1,436,350 0.29%
19. Merrill Lynch (Australia) Nominees Pty Limited 1,319,776 0.27%
20. AMP Life Limited 1,248,110 0.25%

Total 349,595,063 70.42%

Annual Report 2010

Further to Jonathon's list above, the following immediately below that list in the Annual Report shows the total shareholding controlled by Newtron Pty Ltd (ie P Bond)-

Substantial equity security holders
The number of shares held by substantial shareholders and their associates are set out below:
Newtron Pty Ltd (including 11,000,000 held through Nominees) 200,923,904 ...... 40.47%
HSBC Custody Nominees (Australia) Limited 29,938,557 .... 6.03%

From the Annual Report

Chairman's Message
During the year, at Linc Energy’s Chinchilla Demonstration Facility in Queensland, the UCG team designed, constructed and operated Gasifier 4 at near-commercial levels and achieved its start up in five hours. Equipment for oxygen injection to improve synthesis gas quality was established and trialled and a coil tubing unit was also acquired for faster UCG drilling and well intervention. The expanded UCG technical and operations group is now focusing on the commercialisation of Linc Energy’s UCG technology

Managing Director's Report
What differentiates Linc Energy is that we have a strong portfolio of coal deposits and oil and gas tenements in both Australia and the United States. Holding coal, oil and gas tenements is a key component of our business strategy as we seek to unlock value from the significant resources we own. Owning coal, oil and gas reserves is a cornerstone component of our business, so it is natural that we will aggressively expand that aspect of our business with further acquisitions over the coming months.

Not only can we look to realise value in our core UCG business from the coal deposits we hold, but we can also exploit our oil and gas leases to generate immediate cash flow from natural gas operations. At Linc Energy we are focused on achieving our goals, but more importantly, we are about securing our grip on resource acreage and unlocking the value and short-term profits from those resources

I have said this before, but I will say it again: The first coal sale is not the end of Linc Energy’s business plan, it is just the beginning. We have several remaining non-core coal assets for sale which will only increase in value, as well as some excellent oil and gas opportunities. These assets underpin the future of our company and assure us of our forward funding to reach our destiny. Having large cash reserves, with a large asset base, is a great place for our company to be at the moment.

We are also examining other options to develop various programs for carbon mitigation, including Linc Carbon Solutions, and applying carbon capture and storage methods for exhausted UCG cavities. In this case UCG could be driven by the fact that its clean gas is an industrial driver for the world economy, and ironically the cavity in the coal seam from the UCG process could be the ultimate carbon sink. Subsequently, as the world edges towards a low carbon commercial environment, these cavities could be more commercially attractive than the UCG syngas we produce, making UCG even more attractive to the marketplace and ensuring UCG has a place in the world’s ‘low carbon economy’.

With the coal sale now complete and other asset sales underway, Linc Energy is poised to move to the commercialisation of UCG. You will see a very driven business model focused primarily in the United States upon our Wyoming and Alaska operations as the building blocks for early UCG commercial success. I believe Linc Energy is now in the best position it has ever been to drive towards the commercialisation of UCG.

Our other key assets, like the prospective oil in the Arckaringa Basin in South Australia, which I consider to be our ‘liquid Galilee Basin’, are also ideal opportunities for early growth and profits. I am also very confident about the acreage we own in Alaska and the potential for a natural gas discovery. Our first well is soon to ‘spud’, and this is a fantastic opportunity for the company. It is my belief that Linc Energy will earn cash flow in the next 12 months and this will just be the start of what is an extraordinary business model.

The dividend payment is a token of appreciation for your loyalty, and the Board and I hope to be in a position to declare other special dividends to share our financial milestones with you in the future.

Walloway Basin

Following the initial discovery, Linc Energy announced plans to accelerate the evaluation process in the Walloway Basin due to its proximity to port infrastructure and easy road access to Adelaide. In January 2010, drilling operations began with a further 30 wells appraising the lateral extent of coal occurrence, coal quality, overburden geology and hydrogeology. Appraisal of this information has been completed, indicating constraints in the overburden strength requiring additional drilling to secure a more suitable location for UCG application in this area.

United States
In March 2010 Linc Energy, through wholly owned subsidiaries Linc Energy (Wyoming), Inc. and Linc Energy (Montana) Inc.
announced it acquired an additional 81,268 acres of Powder River and Williston Basin coal leases located in Wyoming, Montana
and North Dakota. These were acquired from GasTech, Inc. and Wold Oil Properties, Inc. In the Williston Basin, Linc Energy’s
focus has been the Stateline Project. This location is believed to host a low strip ratio, large lignite deposit suitable for a
conventional open cut mine development. Activities focused on the evaluation of this potential resource beginning with the
review of previous drilling data.

From these extracts I deduct the following-

1. Gasifer 4 has not yet produced commercial quanities of Syngas but could be close to doing so.
2. More acquistions of coal tenements are certain.
3. LNC appear to be very confident of finding gas in Alaska soon .
4. The "several non-core coal assets for sale" appear to include a possible open cut mine in the Williston Basin in the USA.
5. The exhausted UCG cavities could be very valuable as storage sinks for Carbon Capture and Storage.
6 LNC's 1st UCG commercial operation could be in USA as they have not yet identified a suitable location for UCG operations in the Walloway Basin and the main focus is on the USA operations.
7. More Special Dividends are likely.

All IMHO.I continue to hold LNC.

5 October 2010
LINC ENERGY ENTERS INTO MOU WITH GFZ (GERMANY) FOR CARBON CAPTURE AND STORAGE (CCS) IN UCG CAVITIES.

These type of deals obviously put out a strong message, that Linc are serious in their endeavour to become a major player in their field of energy production.
It's frustrating to witness the sp languish at current levels, but it will rise to dizzy hights once full recognition is given to the company, IMHO.

I continue to hold LNC

Was just watching the sorry sight of CTP taking a dive as it's last oil drill failed to live up to the CEO's promise.

I started to think that perhaps LNC should make a takeover bid for CTP. CTP have billions of tons of coal suitable for UCG as well as the potentially very valuable oil tenements. LNC is now actively drilling for oil with it's own rigs (I believe) so expanding it's resource base would make excellent sense.

In fact they wouldn't even have to shell out cash. A takeover using LNC shares would add value to LNC's asset base, would enable CTP's shareholders to gain access to even larger resources and technology than they already have and enable some extra cash and expertise to be brought to CTP's exploration. It's not as if LNC hasn't already picked up other assets that fit in their energy portfolio. SAPEX for one.

I think it could be very good deal around. With the current SP reversal at CTP some strategic buying by LNC wouldn't go astray.

Any thoughts?
_____________________________________________

As of October 5th the top 20 shareholders in CTP held 17.48% of the stock (according to CTP website). Wide open listing.

If we were to take over a company I'd like to see the deal done with cash, we have no shortage of it in the near term with 2 more further coal sales on the way on top of the 500 million we received. No point in diluting the shares on offer when we can pay off the big pile of cash we are sitting on.

basilio said:

Was just watching the sorry sight of CTP taking a dive as it's last oil drill failed to live up to the CEO's promise.

I started to think that perhaps LNC should make a takeover bid for CTP. CTP have billions of tons of coal suitable for UCG as well as the potentially very valuable oil tenements. LNC is now actively drilling for oil with it's own rigs (I believe) so expanding it's resource base would make excellent sense.

In fact they wouldn't even have to shell out cash. A takeover using LNC shares would add value to LNC's asset base, would enable CTP's shareholders to gain access to even larger resources and technology than they already have and enable some extra cash and expertise to be brought to CTP's exploration. It's not as if LNC hasn't already picked up other assets that fit in their energy portfolio. SAPEX for one.

I think it could be very good deal around. With the current SP reversal at CTP some strategic buying by LNC wouldn't go astray.

Any thoughts?
_____________________________________________

As of October 5th the top 20 shareholders in CTP held 17.48% of the stock (according to CTP website). Wide open listing.

Click to expand...

As a current investor in Linc, I'd prefer to see Linc focus on the construction of the proposed 20,000 BPD, CTL plant.
Whether it be via a JV or alone, with oil prices up in the 80's, it's a appropriate time.
Hopefully PB and his merry men, have been successful in finding cost effective suppliers, of the necessary materials to construct the plant.

Linc must be burning through cash, excuse the pun, financing their various global projects, so how long does half a billion Aus$ last?

Pleasant weekend people

dogeatdog said:

As a current investor in Linc, I'd prefer to see Linc focus on the construction of the proposed 20,000 BPD, CTL plant.
Whether it be via a JV or alone, with oil prices up in the 80's, it's a appropriate time.
Hopefully PB and his merry men, have been successful in finding cost effective suppliers, of the necessary materials to construct the plant.

Linc must be burning through cash, excuse the pun, financing their various global projects, so how long does half a billion Aus$ last?

Pleasant weekend people

Click to expand...

I agree with dogeatdog,
50 million is already gone on the dividend.
Wages are another cost $? (yerostagz is self supporting, making a profit)
Repayment of the Springfield loan account $m?
Aquisitions already planned by PB. $
Drilling (Lea-1) and there must be aggressive plans to be actioned soon, maybe Linc will buy more rigs(250K each)..
The UCG-GTL recent studies (Sheden)$?
$128000 x 3 years on the German mob CCS
Vietnam
AFC
There are certainly many other costs.

PB has already stated he wants a partner that can contribute to the technology, not a partner with cash. I dont think PB will want to dilute his 40% odd ownership further.

Another good thing about this company is that PB is the MD and owns a major stake in the company (concluding that he will look after himself, as a shareholder (and us holders), with things such as dividends)

The royalty may be about $75m per yr avg (to be CPI adjusted, for future time value) if Adani surprise with their own rail and port( which they are looking aggressive with).

With approx 500m LNC shares on the market. 1.80 x 500m =900m market cap. P/E ratio with only this royalty income is about 12, no? Hopefully there will be more income (GTL, AFC, gas, electricity, royalties, more exploration joys and sales)

Don't really want to bang on too much about the value of a CTP takeover bid but I think it's worth a couple more observations.

1) The assets already identified particularly underground coal are very tidy and do fit into LNC's area of interest

2) The oil tenements appear to be on the cusp of a highly profitable project. In fact they could be producing income within 12 months.

3) The disappointment with CTP's management is seeing the shares at a pretty low price relative to reserves. It looks like a juicy bargain for anyone with the cash and perhaps even better value for a company that can use CTP's assets in a particularly profitable manner.

And obviously if we can recognise theses possibilities then they won't be overlooked by other companies in this field.

basilio said:

Don't really want to bang on too much about the value of a CTP takeover bid but I think it's worth a couple more observations.

1) The assets already identified particularly underground coal are very tidy and do fit into LNC's area of interest

2) The oil tenements appear to be on the cusp of a highly profitable project. In fact they could be producing income within 12 months.

3) The disappointment with CTP's management is seeing the shares at a pretty low price relative to reserves. It looks like a juicy bargain for anyone with the cash and perhaps even better value for a company that can use CTP's assets in a particularly profitable manner.

And obviously if we can recognise theses possibilities then they won't be overlooked by other companies in this field.

Click to expand...

If PB does decide on further acquisitions, AFC is starting to gain recognition, and may soon be a high flyer. (I must get round to buying some shares)
IMHO

Any updates on approval for drilling in Alaska "Lea 1" ?
LNC holder.

http://ktna.org/2010/08/30/public-notice-natural-gas-expl-in-mat-su/




This month

The AFC fuel Cell technology (which LNC is currently exploring) is getting traction in UK. AFC have signed a deal to use the fuel cell technology in a major new power station. Good spike in their shares too.

Be interesting to see if this will be part of LNC's proposal for the SA power station proposal.

Deal signals advent of clean fuel-cell power stations

Three British companies have joined forces to develop a pioneering venture in clean power generation.

Energy developers Powerfuel Power, B9 Coal and AFC Energy have signed an agreement to install AFC Energy’s revolutionary fuel cell technology at Powerfuel’s Hatfield site near Doncaster.

The agreement paves the way for the creation of a joint venture between B9 Coal and Powerfuel to exclusively develop low-carbon fuel cell power stations in the UK.

B9 Coal will be responsible for installing up to 300 megawatts (MW) of AFC Energy’s fuel cell technology alongside Powerfuel’s planned integrated gasification combined cycle (IGCC) power station. The agreement also includes an option to rollout the technology to further territories worldwide in the future.

.....Powerfuel is constructing a large scale IGCC, near-zero emissions power station with carbon capture capability at the Hatfield site. Initial construction will involve an 800 MW combined cycle gas turbine (CCGT) facility optimised for syngas conversion and operation. Powerfuel then plan to convert the CCGT plant into a 900 MW IGCC power station fuelled by its extensive coal resources at Hatfield colliery.

The syngas used in the plant can easily be passed through a clean-up process to produce hydrogen as a feedstock for AFC Energy’s low cost alkaline fuel cells. AFC Energy’s technology converts hydrogen to emissions-free electricity at 60% electrical efficiency.

Click to expand...

http://www.clickgreen.org.uk/news/n...advent-of-clean-fuel-cell-power-stations.html

LSE

Headline Exercise of Option by Linc Energy and Placing
Released 11:25 12-Oct-2010
Number 2444U11



RNS Number : 2444U
AFC Energy Plc
12 October 2010


http://www.londonstockexchange.com/...rket-news-detail.html?announcementId=10685589


AFC Energy PLC


("AFC Energy", "AFC" or the "Company")

Exercise of Option by Linc Energy and Placing
AFC Energy (AIM: AFC), a world leading developer of low cost alkaline fuel cell technology, is pleased to announce that Linc Energy Limited (ASX: LNC) has exercised its option to extend licence rights and that it has raised £4.0 million net from the placing of new ordinary shares with Linc Energy Limited ("Linc Energy") and a group of private investors.

Further to the binding heads of agreement made between AFC with Linc Energy and B9 Coal Limited ("B9 Coal") and announced on 8 December 2009, Linc Energy has exercised its option to extend in perpetuity its worldwide exclusive rights to utilise and operate AFC fuel cells in conjunction with underground coal gasification ("UCG") and to use AFC fuel cells in any commercial or research application in Australia.



Linc Energy has invested £2.97 million pounds in AFC Energy at a 7.5% discount to the 30 day volume weighted average price at the close of business on Wednesday 5th October 2010 meaning that the exercise price is 17.72 pence per ordinary share. This includes a £2.3 million investment to exercise its option. Linc Energy will receive 16,763,650 new ordinary shares of 0.1 pence each in the capital of the Company (the "Linc Shares").



AFC, Linc Energy and B9 Coal will now work together to conclude the detailed terms of the licence. Under the terms of the licence, for Linc Energy owned sites, Linc Energy will pay to AFC an upfront payment calculated on the cost of delivery of fuel cell systems, and a royalty based upon profits generated from the use of AFC fuel cells. Linc Energy will pay B9 Coal, as introducer and broker to the transaction, a royalty equal to 2% of the net profits generated from the use of AFC fuel cells.



AFC is also pleased to announce that it has agreed, conditional only on Admission (as defined below), to place a further £1.055 million of new ordinary shares at 18.5 pence each (5,702,703 new ordinary shares of 0.1 pence each in the capital of the Company (the "Placing Shares")) with a group of investors, comprising principally high net worth individuals ("Investors"), who have been in dialogue with the Company about the development of new business streams (the "Placees").



Linc Energy and the Placees have agreed not to dispose of ordinary shares held by them for a minimum period of 12 months and Linc Energy has also agreed that for a further 12 months after the expiry of the initial 12 months lock-in period that it will not dispose of any ordinary shares it holds save through the Company's broker so as to ensure an orderly market in the shares. The net proceeds of approximately £4.0 million will be used to provide operating capital for the development and commercialisation of the Company's fuel cell systems.

Ian Balchin, CEO of AFC said: "We are delighted that Linc Energy has exercised its option and look forward to working closely with them to integrate our technologies, enabling low cost, clean power generation from underground coal. We are also delighted to welcome a group of significant high net worth individual investors who have the potential to open doors to new markets. The additional investment received will be used to take AFC Energy well into the early stages of commercialisation."

Alisa Murphy, Director of B9 Coal, added: "We are extremely pleased with this development and the strengthening of the relationship between Linc Energy, AFC Energy and B9 Coal. We look forward to moving forward with low-carbon power generation projects and showcasing the role of this unique combination of technologies in a low-carbon future."

Peter Bond, CEO of Linc Energy concluded: "Linc Energy have been impressed by the rapid progress made by AFC Energy since partnering with them less than a year ago, including the successful deployment of a fuel cell system at our Chinchilla Facility in June. In conjunction with B9 Coal, AFC Energy have also shown great commitment and tenacity in exploiting opportunities in the European market for our jointly-developed technology.

"We look forward to maintaining this rate of technical and commercial development, working together to fully commercialise smart, efficient fuel cell power systems on a large scale at UCG sites, with virtually no CO2 emissions. Linc Energy is one of the cheapest potential sources of Hydrogen in the world via its underground coal gasification (UCG) process. A relationship with AFC to use this cheap Hydrogen to produce power via fuel cells, is a common sense way that Linc energy can further monetise its UCG gas and create a clean energy power market for generations to come."

The aggregate number of Linc Shares and Placing Shares to be issued by Company is 22,466,353 new ordinary shares of 0.1 pence each in the capital of the Company. Application has been made for the Linc Shares and Placing Shares to be admitted to trading on AIM and dealings are expected to commence at 8.00am on 25 October 2010 ("Admission").

The total enlarged issued share capital of the Company following Admission will be 173,339,207 ordinary shares of 0.1 pence each in the capital of the Company. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

ENDS

Big spike in AFC

28.06p

Linc moves on AFC Energy...is this the start or the end?? My bet is that it the former as they would make a great match up and really corner a niche market.

AFC Energy share price has jumped over 40% over the previous 3 days (although down 5% today) on no new news releases except for this RNS just issued. All good news in an exciting new energy arena. Go Linc! Hopefully Linc will make a news release tomorrow.

Where is that second coal sale news? Linc's SP is in a coma and should be flying with all this potential!

Exercising the AFC option is a no-brainer - and it's great to see that the fuel cell technology appears to be maturing rapidly and that LNC is in boots and all

With the right push this could be a very significant turning point for clean , cheap power generation in Australia and globally. IF, (and it's properly demonstrated) the new combination of UCG and Alkaline Fuel cells can generate power at roughly the same cost as say gas fired stations ( or better still coal fired stations) there appears to be no sensible reason not to mandate this technology. In fact if there is any sort of carbon price brought to bear I think this will be a clear winner.

I love elegant, win win solutions

Let's go!!

__________________________________________________________

And surely LNC has to be re rated by analysts and the market place soon. It's just too cheap with all the irons in the fire starting to glow...

It looks like a director bought half a million dollars worth of shares on market..

"Mr Oliver Yates, a non-executive director of Linc Energy (ASX:LNC), has informed the Company of the purchase of shares in his Superannuation fund which he holds a direct interest."


and reports are saying Adani is trying to get Coal India(CIL) to help develop Galilee after CIL completes their mega IPO...

http://in.news.yahoo.com/20/20101013/372/tbs-adani-in-talks-with-cil-to-develop-r_1.html

Why is it that there are two to three times more sellers than buyers and yet the sp remains at $1.80 ish. I have noticed this trend with linc for a while now.
Is it as simple as sell orders just sitting there to be activated when their price is reached?
Thanks

mexican said:

http://ktna.org/2010/08/30/public-notice-natural-gas-expl-in-mat-su/




This month

Click to expand...

Thank you for the link Mexican.
Apologies for the delayed reply..................................................................................................................................................................................................................................................................................................................

teabagger said:

Why is it that there are two to three times more sellers than buyers and yet the sp remains at $1.80 ish. I have noticed this trend with linc for a while now.
Is it as simple as sell orders just sitting there to be activated when their price is reached?
Thanks

Click to expand...

Hi teabagger, I wouldn't take too much notice of the entire list of open orders. You could put an order in to buy at a price that you know won't get filled and that would add to the supposed unbalanced view.

You would be much better off looking at a smaller cross section of the depth to get a better view - maybe a little more than a typical daily range would be a good start.