LNC - Linc Energy

[Mickel]

More good news about the AFC Fuel Cell on the LNC website. The article was in Australia's Mining Monthly November edition.

An extract-
"Linc aims to commercially roll out the hydrogen fuel cell technology in two years
with 100 of the 50kW units set to make up a 50MW module - enough to power about 50,000 homes.
"Once the testing of the Beta unit is completed, that will probably be about mid
next year, we hope by the end of next year we will be sign up for the first megawatt power station unit:' Bond said."

http://www.lincenergy.com/data/media_news_articles/LNC-Media_Coverage-572.pdf

 

[optic]

The AFC fuel cell could really be a game changer at some stage in the future IMO.

Will be interesting to see how it all plays out. LNC have so many balls in the air at the moment, hopefully none of them drop!

 

[Smurf1976]

Whether or not fuel cells replace conventional gas turbines and/or steam turbines in the long term will come down to cost, flexibility in operation (ramp up and ramp down) and plant availability (how reliable they are).

But in any event, if fuel cells didn't work out then syngas can always be used in a conventional CCGT plant instead.

(CCGT = Combined Cycle Gas Turbine. Effectively a jet engine with the exhaust heat recovered (as steam) to run a steam turbine. It's the most efficient of present electricity generating technologies using gas (usually) or oil (far less common but technically viable). It's not a viable technology for conventional coal-fired plants, which use a boiler and steam turbine only - being able to use coal in a CCGT via syngas would in itself be an improvement.

 

[Atomic]

Is a LNC takeover of AFC on the horizon ?
Would it be a wise move in regards to securing the rights to the fuel cell technology ?

 

[Atomic]

So where else too from here on in ,
Will we see a supply chain of fuel ststions throughout USA Canada with direct to the consumer poduct ? So premium disel for Jet FUEL only, cuts out a huge supply potenial
By adding a service chain (petrol stations) this will cut out the middle man and the true refining margin will be realised.

So far this company has'nt stopped surprising me with their achievments and insight.

This is the greener fuel for the next ?

 

[Mickel]

So where else too from here on in ,
Will we see a supply chain of fuel ststions throughout USA Canada with direct to the consumer poduct ? So premium disel for Jet FUEL only, cuts out a huge supply potenial
By adding a service chain (petrol stations) this will cut out the middle man and the true refining margin will be realised.

So far this company has'nt stopped surprising me with their achievments and insight.

This is the greener fuel for the next ?

LNC has a MOU with BP for diesel fuel (14,000 bpd from memory) signed over 2 years ago. LNC has also stated this year that they could take in a partner in the first GTL plant who would add more than just finance- such as distribution to assist in derisking the project.

I don't think LNC would spend money or time on distribution as it's not as profitable as their other activities. Don't forget the diesel that comes from the GTL plant is ready to go directly into vehicles, so they are selling the finished product (ie it includes the refining margin).

I agree with Mr Z that this is a "bottom drawer" stock and could be bigger than Ben Hur. There will be plenty of news flowing next year about coal tenement sales,gas production, EOR, power generation, AFC Fuel Cells, Oil discoveries, finding extra coal on new and existing leases and various processes regarding GTL (building the modules, siting the plant and beginning construction of same).

We just need more patience and hope it all unfolds without any major hiccups.
Long term LNC holder.

 

[Atomic]

So would there be any value in a takeover of AFC

just tryin to put a spin on where LNC is heading. As they seem to be going in many different ways lately!!!

I am a believer of this co , and i am really just trying to get a longer term valuation

 

[Mr Z]

I think they are a smart crew that will build a larger scale diversified new age energy company. They seem to have the smarts and they are not chasing "green fluffy rainbows" just practical hardcore solutions. That is where I think they are heading.... just my SUBJECTIVE take on the action so far but I'm willing to back them at the moment. No stupid stuff going on as far as I am concerned ---> icing on the cake is that the staff seem to be putting their money where their mouth is, I like that.

Anyway... that is where I think they are heading.

 

[J&M]

TOWARDS COMMERCIALISATION
LEA #1 Leads The Way
Alaska is Linc Energy’s land of opportunity. Since July, Linc Energy has snapped up a total of 122,000 acres of traditional oil and gas leases in the Cook Inlet Basin in a strategic move to potentially generate cash flow from natural gas opportunities and establish a reputable operating presence in the coal-rich state for potential future UCG activities.

The Linc Energy (Alaska) Inc. team has now spudded its first gas exploration well LEA #1 to target and assess the natural gas potential of the site. The drilling has also intersected regional coal measures.

“The drilling of LEA #1 in such a short timeframe since we first acquired these leases is an indication of how committed Linc Energy is to creating early cash flow opportunities for its shareholders,” said Chief Executive Officer Peter Bond.

“Natural gas is a much needed commodity in the state of Alaska. With oil and gas pipelines, platforms and facilities already in place within the region, transportation and export become near certainties,” said Bond.

LEA #1 was drilled to a depth of 6, 323 feet (or approximately 1.9 kilometres) into the regional basement volcanic rocks and encountered a number of gas bearing horizons and significant coal seams.

“Not only have we spudded a potential gas opportunity, we’ve intersected regional coal measures, and I look forward to updating shareholders on these results as soon as they become available.” he said.

 

[dogeatdog]

Nice little surge today, up over 3%.
Last time the sp was at the current level, was November 6th 2008
LNC holder

Can anyone recommend a dedicated Aussie stocks, tip sheet provider please.

 

[Jonathan111]

http://www.vision6.com.au/download/files/21473/1291352/TR_IL17_WEB READY ARTWORK.pdf

Linc Energy will construct and
commission Gasifier 6 on its 165,000-
plus acres of coal tenements in
Wyoming.

PB
My aim is to commence EOR by late 2011
with the goal to produce 3,000 barrels of
oil per day. Soon afterwards, our aim is
that this oil production will increase to
10,000 barrels per day, with the ultimate
goal being the production of over 36,000
barrels per day within 36 months of the
extraction of the first barrel of oil.
What that means in terms of dollars
and cents is that Linc Energy is aiming
to produce $100 million in revenue
quickly, in fact by the fourth quarter
of 2011. We intend to move quickly to
over $250 million in revenue in 2012.
Once Linc Energy breaks over 36,000
barrels of oil per day, Linc Energy will be
in a position to earn over a billion dollars a
year, with an estimated EBITDA1 (profit) of
over $400 million. In addition, we will have
a series of EOR projects that will continue
for years to come, with a new EOR project
added to our execution list at least every
quarter, year upon year. This brings me to
Linc Energy’s new motto, which is simply
‘Towards One Billion’.

Linc Energy has three unique value steps
in its growth model:
1. Resource sales: Selling assets (similar
to the coal tenements sold to Adani)
provides Linc Energy with a shortterm,
self-funding growth model. The
next obvious asset for sale is ‘Teresa’,
on which I expect strong progress in
the first quarter of next year. I can now
also inform you of a third sizable coal
asset in Queensland, adding to the
string of resource opportunities we
own. This asset will also go up for sale
by the end of 2011.
2. UCG to EOR: The oil recovered using
CO2 from UCG for the oil recovery
process is a very strong first step in
the commercial model that will be
part of Linc Energy’s growth platform
for many years ahead. This is by far
the fastest, most profitable way to
commercialise UCG for Linc Energy.
3. GTL: The GTL component of the
business model will have a generational
role to play in the energy sector.
Linc Energy will continue to develop
this via its multi-stage 5,000 barrel per
day modular GTL platform.
The Linc Energy business plan is

 

[Mickel]

Well done Jonathan in sourcing the latest Investor Linc.

It is on their website with this link-

http://www.lincenergy.com/data/investor_linc/investor-linc-issue-17.pdf

Certainly, there are exciting times ahead in the next 12 months. I think the American investors will be very excited when they read this latest information.
So I consider the full text of Peter's message should be posted here-

"Welcome once again to InvestorLinc. I can’t believe Christmas is already here!

I guess time really does fly when you’re having fun!

This year has seen a number of highlights for Linc Energy, including the sale

of our Galilee coal asset, the refocus of our company to an even more

dynamic and progressive business strategy, and the upward recovery of our

share price. It is at about this time of year you start to reflect on just what

has been achieved over the past 12 months. Here’s the list I came up with:

1. The purchase of oil and gas leases in Alaska.

2. Opening Linc Energy’s offices in Alaska, Denver and Wyoming.

3. Spudding our first Alaskan gas well (LEA #1) in just four months after taking control of the lease.

4. The sale of our Galilee coal asset to Adani Mining Pty Ltd.

5. Payment of the 10 cent special dividend following that sale.

6. Continued expansion of our Linc Energy team.

7. Safe and continuing operation of UCG Gasifier 4.

8. The purchase and use of our coil tubing equipment at the Chinchilla Demonstration Facility. Linc Energy is

the only company in Australia using coil tubing for UCG.

9. Successful UCG oxygen injection trials, which are also set to continue next year with the purchase of our own

oxygen facility.

10. Hydrogen fuel cell trials and the acquisition of a 10 per cent stake in AFC Energy.

11. The joint venture with Germany’s GFZ to research the sequestration of CO2 into UCG cavities. Remember it’s

been proposed that up to 400 times more CO2 can be injected into used UCG cavities compared with the

currently proposed traditional deep aquifers. Subsequently, UCG cavities could become a carbon ‘sink’ for the

world’s carbon.

12. The acquisition of another 32 coal leases/tenements in Alaska and

Australia. This means we now own over 340 coal, oil and gas tenements around the world. The resource

position we control is larger than the entire state of Oklahoma.

13. And finally, we are set to begin work for UCG Gasifier 5 at the Chinchilla Demonstration Facility,

while progressing permitting work for our first overseas UCG operation in Wyoming, with another soon

afterwards in other key strategic locations around the world.

When you review what we’ve achieved over the past few months, it’s staggering. Much of this achievement was set up by

the hard work we did in the latter part of 2009 and the early part of this year. There is no doubt Linc Energy lost a great

deal of traction due to the financial crisis that affected the globe from late 2008 to late 2009. Now 12 months on, there is

no doubt that Linc Energy is now back. We are driving hard and are seeing traction across all our business units,

and we are starting to gain some very strong momentum.

The next two to three years at Linc Energy are going to be very exciting. We have completed the development phase of the

business and we are now transitioning to being a sizable commercial operation and an international energy player.

Importantly, Linc Energy has added a new key commercial driver to its business model – enhanced oil recovery (EOR).

EOR uses the CO2 by-product from the UCG process by pumping it into depleted oil fields to extract greater volumes of

oil. This is a significant step forward in Linc Energy’s commercial model.

There are hundreds of depleted oil fields in and around where Linc Energy is based in Wyoming and Alaska. Most of these

oil fields have large known oil reserves that will remain stranded unless the oil field can be flooded with CO2. For that,

an abundant amount of CO2 is needed, and Linc Energy has the capacity to produce the cheapest man-made CO2

in the world, right next door to these oil fields. For every tonne of CO2 pumped into an oil field, two to five barrels of oil can

be recovered at an average cost of $30 to $35 per barrel. With an oil commodity price of $80, that’s a $40 to $50 margin

per barrel. Also, the good news is that virtually all the CO2 can be sequestered and trapped in that oil reservoir.

Consider the hundreds of millions of barrels of oil readily available in these depleted oil fields and you start to gain an

appreciation for the potential commercial opportunity at hand. We have already started work on the UCG to EOR process

and have established our own EOR team in our Wyoming office in Casper.

My aim is to commence EOR by late 2011 with the goal to produce 3,000 barrels of oil per day. Soon afterwards, our aim is

that this oil production will increase to 10,000 barrels per day, with the ultimate goal being the production of over 36,000

barrels per day within 36 months of the extraction of the first barrel of oil.

What that means in terms of dollars and cents is that Linc Energy is aiming to produce $100 million in revenue

quickly, in fact by the fourth quarter of 2011. We intend to move quickly to over $250 million in revenue in 2012.

Once Linc Energy breaks over 36,000 barrels of oil per day, Linc Energy will be in a position to earn over a billion dollars a

year, with an estimated EBITDA1 (profit) of over $400 million. In addition, we will have a series of EOR projects that will

continue for years to come, with a new EOR project added to our execution list at least every quarter, year upon year. This

brings me to Linc Energy’s new motto, which is simply ‘Towards One Billion’.

This motto means that Linc Energy is focused on creating one billion dollars per annum of revenue and booking a

billion barrels of oil reserves. For me, this is the first big step for Linc Energy to establish itself as a commercial energy

player of some size and significance. This is all driven by UCG and will not be lost on the world’s financial markets.

In one move, by developing and linking UCG with EOR, Linc Energy will commercialise and substantiate the

UCG process, whilst significantly growing the value of our coal assets and oil reserves. This is why Linc Energy has been

acquiring oil and gas assets over the past few months. It is the final piece of Linc Energy’s business model.

Linc Energy will continue to focus on GTL and I’d like to have a firm opportunity and modular design fully costed and

quoted available for our Board to make a definitive decision by the third quarter in 2011.

Linc Energy’s improvements in the cost of construction of a modular GTL facility will change the industry. Combining UCG

with GTL will add a generation of opportunity to Linc Energy and I am still committed to unlocking that potential.

Linc Energy has three unique value steps in its growth model:

1. Resource sales: Selling assets (similar to the coal tenements sold to Adani) provides Linc Energy with a shortterm,

self-funding growth model. The next obvious asset for sale is ‘Teresa’, on which I expect strong progress in

the first quarter of next year. I can now also inform you of a third sizable coal asset in Queensland, adding to the

string of resource opportunities we own. This asset will also go up for sale by the end of 2011.

2. UCG to EOR: The oil recovered using CO2 from UCG for the oil recovery process is a very strong first step in

the commercial model that will be part of Linc Energy’s growth platform for many years ahead. This is by far

the fastest, most profitable way to commercialise UCG for Linc Energy.

3. GTL: The GTL component of the business model will have a generational role to play in the energy sector.

Linc Energy will continue to develop this via its multi-stage 5,000 barrel per day modular GTL platform.

The Linc Energy business plan is literally a 25 year high growth model, and one that will morph and expand as the

company grows in the future. To our shareholders, I simply say welcome to the next era of Linc Energy.

I look forward to updating you all as we start upon this journey of commercialisation; the journey ‘Towards

One Billion’.

From me, and all of the team at Linc Energy, may you have a fantastic Christmas break and enjoy a safe and prosperous New Year.

With best wishes to all,

Peter Bond

CEO and Managing Director"

Hopefully this will trigger a huge demand for LNC shares and send the S/P much higher.
Longterm LNC holder.

 

[snowking]

Hopefully this will trigger a huge demand for LNC shares and send the S/P much higher.
Longterm LNC holder.

The positivity and guidance surrounding the update should definitely trigger greater demand. The plan says what they want to do and how they are going to do it, which is critical to investor confidence. since yesterday's update there has been an upward move close to 20c.

 

[Jonathan111]

Im a little disappointed that the ucg gen 5 will be at chinchilla instead of going for semi-commercial or commercial production at south aus or overseas, if the gov change, do a flip and allow ucg to operate commercially in QLD, this will be very good for Linc

 

[Mickel]

Im a little disappointed that the ucg gen 5 will be at chinchilla instead of going for semi-commercial or commercial production at south aus or overseas, if the gov change, do a flip and allow ucg to operate commercially in QLD, this will be very good for Linc

Jonathan, LNC haven't defined where they will site a Generator in Sth Aust yet as they are still looking for a coal seam where there will be no overburden problems. Also they need to monitor the gas flow and composition ,so the Lab at Chinchilla plays a critical role.
They mentioned a Generator 6 for Wyoming.

 

[Mickel]

Hopefully this will trigger a huge demand for LNC shares and send the S/P much higher.
Longterm LNC holder.

In the ASX announcement on Friday, P Bond advised that 2 Directors had sold some of their shareholdings to satisfy American demand-

"Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) advises that following recent significant interest in Linc Energy stock from North America, Linc Energy Directors, Mr Ken Dark and Mr Craig Ricato, agreed to a private placement of a portion of their individual holdings to North American institutional investors."

http://www.lincenergy.com/data/asxpdf/ASX-LNC-301.pdf

Let's hope that the demand will continue. Not sure why the directors would agree to this unless they needed some $$$$$ and didn't wish to depress the S/P here.

 

[basilio]

Let's hope that the demand will continue. Not sure why the directors would agree to this unless they needed some $$$$$ and didn't wish to depress the S/P here.

Puzzling isn't it ? If your a director of a 'soon to be' thriving company why would you sell off the company shares from your private super fund ?

My guess is that the yanks wanted some shares quickly and that good relations dictated someone on the Board give them up rather than have their partners buy them on the ASX with the masses.

I suggest that there might be some sort of side agreement that would see extra shares reallocated to Ken Dark and Craig Ricato at some future time.

_______________________________________

And the shares are powering along arn't they. Touched $3.00 on Friday and one would guess next week will see them stay over that mark. Green is a lovely colour

 

[Mickel]

My guess is that the yanks wanted some shares quickly and that good relations dictated someone on the Board give them up rather than have their partners buy them on the ASX with the masses.

I suggest that there might be some sort of side agreement that would see extra shares reallocated to Ken Dark and Craig Ricato at some future time.

_______________________________________

And the shares are powering along arn't they. Touched $3.00 on Friday and one would guess next week will see them stay over that mark. Green is a lovely colour

I think you may be on the money there, Bas. That Bondy publicly praised them for giving up the shares, suggests there will be an accomodation for them in the future.
I was hoping that Santa would bring me LNC at $3.00 minimum for Christmas and I look like getting my wish.

I note that Bondy's audio presentation from the AGM is now on line at-

http://www.lincenergy.com/boardroom_radio.php

One comment he made when advising he wouldn't be driving a car on LNC Diesel from Chinchilla to Perth this year (he will do it early next year with publicity) was that he was too busy with presentations around the world to push the share price back up above $5.00. This drew applause as you can hear.

 

[Mickel]

So would there be any value in a takeover of AFC

just tryin to put a spin on where LNC is heading. As they seem to be going in many different ways lately!!!

I am a believer of this co , and i am really just trying to get a longer term valuation

There would be value in taking over this Company as it is on the cusp of commercialising exciting new technology. Whether you could or couldn't takeover AFC I'm not sure.
I do think it is not on Bondy's agenda. EOR is the main focus.

If you read the latest Investor Linc (mentioned recently) and listen to Bondy's AGM address (refer previous post) you will get a very clear idea where LNC is headed in the next 12 months.

Regarding the valuation, Bondy mentions LNC as a "$3 Billion Company" in the latter part of his address. That is roughly $6 per share which I think is achiveable within 12 months. Longer than that, the sky is the limit if his plans are achieved. He is talking about a new EOR project every quarter, once they have established a few. Then you have the GTL and power.

Massive very profitable (30-40%) revenue streams.

Pick a number- 5 yrs $25? 7 yrs $50? 10yrs ?????
Remember the S/P was under $1 in late June 2010

 

[topsprog]

I note that PB has recently talked about pumping raw syngas into old wells for EOR. Has anyone checked that it is possible to pump CO and particularly Hydrogen into the oil without adverse effects on the oil!. Is it possible to get the Syngas back out of the wells later and reuse it for power generation? That would be interesting - pump Syngas underground - bring up the oil - bring up the Syngas and burn it for electricity or convert to diesel, then pump the resulting C02 back down again.