Australian (ASX) Stock Market Forum

LNC - Linc Energy

The largest use of methanol by far is in making other chemicals. About 40% of methanol is converted to formaldehyde, and from there into products as diverse as plastics, plywood, paints, explosives, and permanent press textiles.


Methanol is used on a limited basis to fuel internal combustion engines. Pure methanol is required by rule to be used in Champcars, Monster Trucks, USAC sprint cars (as well as midgets, modifieds, etc.), and other dirt track series such as World of Outlaws, and Motorcycle Speedway. Methanol is also used, as the primary fuel ingredient since the late 1940s, in the powerplants for radio control, control line and free flight airplanes (as methanol is required in the "glow-plug" engines that primarily power them), cars and trucks, from such an engine's use of a platinum filament glow plug being able to ignite the methanol vapor through a catalytic reaction. Drag racers and mud racers also use methanol as their primary fuel source, as well as heavily modified Tractor Pullers.

Methanol has a high toxicity in humans. If ingested, as little as 10 mL can cause permanent blindness by destruction of the optic nerve and 30 mL is potentially fatal,[


Methanol is readily biodegradable in both aerobic (oxygen present) and anaerobic (oxygen absent) environments. Methanol will not persist in the environment. The "half-life" for methanol in groundwater is just one to seven days, while many common gasoline components have half-lives in the hundreds of days (such as benzene at 10–730 days). Since methanol is miscible with water and biodegradable, methanol is unlikely to accumulate in groundwater, surface water, air or soil
http://en.wikipedia.org/wiki/Methanol
 
We are going to have offices in South Africa joburg, poland, hungry, budapest, india mumbai, shang hai china

http://www.akrdc.org/membership/events/breakfast/1011/031711.html

Linc Energy: Our Plans For Alaska

Paul Ludwig, Stakeholders Relations Manager,
Linc Energy Operations Inc.

Hi Mickel,

Ah yes, I read somewhere that they were producing 20bpd, which would be 159L x 20, which would be over 3000L per day.. got mixed up with the barrels and litres.

Cheers,
Jonathan


Methanol..
Is this another byproduct from the process?

Well done again Jonathan on sourcing this presentation.

In it Paul Ludwig mentioned that the London office was opened 2 weeks ago.
He also mentioned LNC's interest in Louisiana and possibly opening an office there. No doubt they would be looking for depleted oil fields and probably some deep coal deposits there to expand their EOR operations.

He outlined 3 phases for operations in Wyoming-

1st phase being a trial UCG phase commencing probably 2nd half of 2011 to last 12mths. This would include 3mth continuous UCG production, then shut down the process, analyse the results and document everything for regulators.

2nd phase. Providing they have regulator approval, they would then have commercial UCG production commencing in the 2nd half of 2012.

3rd phase would probably be GTL which Paul indictated was the preferred option in Wyoming. No direct planned start up time was stated for this phase.

So earlier statements of producing CO2 for EOR by end of calender 2011 may not be achieved unless they can use the CO2 from the trial UCG operation.

The overall situation should be much clearer by the end of this F/Y.

Waiting..waiting.. for news of the Teresa coal tenement sale...
 
A saying comes to mind, "walk before you run".
I wonder if Linc are expanding too quickly?

PB reminds me very much of Sir Richard Branson, in the early days of building his "Virgin" empire. They even share a similar appearance :)

The recent "Diesel dash" appears to have achieved it's goal in terms of marketing exposure. A US version with a little more razzmatazz to follow maybe :)
(All IMHO)

It's been a hectic week for the sp. Personally I enjoy the volatility, it obviously creates lots of money making/losing opportunities.
Considering all the crap going on out there, the closing price seems reasonable.

Pleasant weekend people.
 
A saying comes to mind, "walk before you run".
I wonder if Linc are expanding too quickly?

PB reminds me very much of Sir Richard Branson, in the early days of building his "Virgin" empire. They even share a similar appearance :)

The recent "Diesel dash" appears to have achieved it's goal in terms of marketing exposure. A US version with a little more razzmatazz to follow maybe :)
(All IMHO)

It's been a hectic week for the sp. Personally I enjoy the volatility, it obviously creates lots of money making/losing opportunities.
Considering all the crap going on out there, the closing price seems reasonable.

Pleasant weekend people.

Hi Doggy

"Is LNC expanding too quickly?" They certainly are juggling many balls in the air at the moment.

On one hand they want to get all their assets (coal tenements and now depleted oil field assets) at a low price because once they start making large profits from these assets further coal tenements (deep coal) and depleted oil fields will be more expensive to obtain, perhaps much more expensive.

On the other hand, PB is very reluctant to raise more cash from share issues as it would dilute current shareholder value (and his controlling interest). He is also very aware that profitable commercial operations ASAP will give LNC a much stronger base. And the CAPEX for GTL is very large (ie around $1.6B for 4 x5000bpd).

IMHO these competing aims can be balanced by the following-

1. Sale of Teresa by June 2011 at the latest for $500M +
2. Profitable EOR operations by Dec 2011
3. Gearing of EOR expansion
4. Gearing/JV for GTL plant

and possibly

5. Sale of another coal tenement for around $500M.

Any comments ?
 
Hi Doggy

"Is LNC expanding too quickly?" They certainly are juggling many balls in the air at the moment.

On one hand they want to get all their assets (coal tenements and now depleted oil field assets) at a low price because once they start making large profits from these assets further coal tenements (deep coal) and depleted oil fields will be more expensive to obtain, perhaps much more expensive.

On the other hand, PB is very reluctant to raise more cash from share issues as it would dilute current shareholder value (and his controlling interest). He is also very aware that profitable commercial operations ASAP will give LNC a much stronger base. And the CAPEX for GTL is very large (ie around $1.6B for 4 x5000bpd).

IMHO these competing aims can be balanced by the following-

1. Sale of Teresa by June 2011 at the latest for $500M +
2. Profitable EOR operations by Dec 2011
3. Gearing of EOR expansion
4. Gearing/JV for GTL plant

and possibly

5. Sale of another coal tenement for around $500M.

Any comments ?

Hey Mickel.
My main concerns with some of the recent business proposals are:

Rapid expansion of worldwide work force. (Cash flow)

Future lack of political support in Aussie and the US, for UCG (Having won the bidding rights in Alaska)

Reliable source of CO2 for the EOR process (If not generated from Linc's in-house process)

Negative news from the Lea #1 gas drilling project.

Coal tenement sale structure, similar to the deal with Adani. (Limited cash up front)

Having said all that, I'm a firm believer in PB, and Linc :)
 
Is this who Linc is teaming up with?



Linc Energy has signed an
international Memorandum of
Understanding (MoU) with one of
india’s largest companies.

Linc Energy has entered into an
agreement with the Shiv-Vani Group,
based in new Delhi.

the MoU will provide for the
establishment of potential joint
ventures between Linc Energy Ltd
and Shiv-Vani.

Shiv-Vani is india’s largest non-
government oil, gas and exploration
drilling company.

the agreement is a coup for Linc
Energy, which plans to turn stranded
coal deposits into ultra clean diesel by
bringing together two proven production
processes – UCG clean coal technology
and Gas to Liquids (GtL).

“We are very excited about the
opportunities in india and the Sub
Continent that this MoU has the

potential to facilitate,” Linc Energy’s
Managing Director, Peter Bond, said.

“the MoU is for a period of 5 years
and will allow us to investigate
opportunities to utilise our UCG and
clean coal technology processes in
india.

“india is one of the new economic
powerhouses in the world and we see
great application for our clean coal
technology and for the generation of
electricity linked to our UCG process”
.

http://docs.google.com/viewer?a=v&q...HQPlSY&sig=AHIEtbQ7W1sRfMM9JytwPzrHepEG1qgHBA

http://www.shiv-vani.co.in/index.php?menu_id=7

signed in 2007
 
Announcement today was fairly benign with only the completion of the purchase of the rancher acreage being the standout news from my perspective. No little hints regarding the Theresa sale, so its slow and steady the sp goes.
 
Announcement today was fairly benign with only the completion of the purchase of the rancher acreage being the standout news from my perspective. No little hints regarding the Theresa sale, so its slow and steady the sp goes.

I'd say all positve news.
www.lincenergy.com/data/asxpdf/ASX-LNC-322.pdf

Considering all the recent negative external news, the sp has held up well.
Hopefully a close above 2.90 by the weekend. :)
 
There is going to be a special edition Investor Linc Newsletter in April..

Last time there was a special edition newsletter was last year, just after the ...


"Linc Energy is in detailed discussions with several parties in relation to the sale of this coal asset, whilst continuing to assess all of its commercial options. Teresa is one of the few remaining PCI coal assets in the Bowen basin of this size and potential, which is also close to established infrastructure."
 
There is going to be a special edition Investor Linc Newsletter in April..

Last time there was a special edition newsletter was last year, just after the ...


"Linc Energy is in detailed discussions with several parties in relation to the sale of this coal asset, whilst continuing to assess all of its commercial options. Teresa is one of the few remaining PCI coal assets in the Bowen basin of this size and potential, which is also close to established infrastructure."

That's a nice fat hint Jonathan..!! To be fair I think LNC suggested in February and on other occasions that the completion of the Teresa coal sale was marked for the first quarter of the year. We are getting nicely close to that.

The fact is if/when this sale is closed it will mean at least another $500m in LNC's coffers which is another $1 per share. The boost this offers to working capital is immense not to mention the opportunity to pick up more coal/oil resources. And we can legitimately expect that $50m of the sale will be earmarked for another 10c a share special dividend, The precedent has been set and in the overall scheme of things seems very legitimate.

I think this an excellent opportunity for the retail fund managers to get a position before LNC hits the $4-4.50 mark that would reflect it's cash position, resource base and multiple earning options.:2twocents
 
That's a nice fat hint Jonathan..!! To be fair I think LNC suggested in February and on other occasions that the completion of the Teresa coal sale was marked for the first quarter of the year. We are getting nicely close to that.

The fact is if/when this sale is closed it will mean at least another $500m in LNC's coffers which is another $1 per share. The boost this offers to working capital is immense not to mention the opportunity to pick up more coal/oil resources. And we can legitimately expect that $50m of the sale will be earmarked for another 10c a share special dividend, The precedent has been set and in the overall scheme of things seems very legitimate.

I think this an excellent opportunity for the retail fund managers to get a position before LNC hits the $4-4.50 mark that would reflect it's cash position, resource base and multiple earning options.:2twocents

Although the most recent presentation said Q2 from mem, and maybe the next dividend will be 10% (of all you earn is yours to keep), i think the value of Teresa has increased. What happend to pentland?
Employee wages must be rising, cash needs to role in, how much will they get from current eor after paying for co2?
Alaska must be warming up by now and they should be able to get on with the lea 1 nat gas well soon
 
That's a nice fat hint Jonathan..!! To be fair I think LNC suggested in February and on other occasions that the completion of the Teresa coal sale was marked for the first quarter of the year. We are getting nicely close to that.

The fact is if/when this sale is closed it will mean at least another $500m in LNC's coffers which is another $1 per share. The boost this offers to working capital is immense not to mention the opportunity to pick up more coal/oil resources. And we can legitimately expect that $50m of the sale will be earmarked for another 10c a share special dividend, The precedent has been set and in the overall scheme of things seems very legitimate.

I think this an excellent opportunity for the retail fund managers to get a position before LNC hits the $4-4.50 mark that would reflect it's cash position, resource base and multiple earning options.:2twocents

Hi Bas

I agree with all of your points.

From memory, Teresa has 200M tons of open cut and 200M tons of coking coal (not necessarily the same 200M tons). While not an expert by any means on coal, the fact that PB has an independant report on the value of PCI coal from Teresa, would suggest that the value of Teresa is above $500M, perhaps signifantly.

As I have said in a previous post, these sale funds will assist in expansion of EOR in particular (purchase of assets and operating costs-incl wages).

The 10c special dividend is almost a given (previously mentioned by PB) on the sale of Teresa.

And the sale should set a new higher base for the S/P.

For the record I list the dates of previous InvestorLinc editions-

Issue 8 Aug 08
'' 9 Nov 08 "Diesel is flowing"
'' 10 Dec 08
'' 11 Mar 09
'' 12 Jun 09
'' 13 Sep 09
'' 14 Dec 09
'' 15 Mar 10
'' 16 Aug/Sept 10 "First coal sale complete"
'' 17 Dec 10
 
What has happened to the intra day volatility. It,s Friday and I need some drinking cash!
This sitting between 2.87 & 2,90 for the last few days is too stable for LNC, something has to give
 
Is BHP Billiton still in the running to buy "Teresa" ????

"A further $US5bn will be invested in three metallurgical coal projects in the Bowen Basin of central Queensland that will add 4.9 million tonnes of annual mine capacity and boost the capacity of the Hay Point Coal Terminal, BHP Billiton said."

It doesn't say if they are existing or new projects but BHP Billiton does have an existing mine adjacent to Teresa.

http://www.theaustralian.com.au/bus...t-in-was-pilbara/story-e6frg9df-1226027893569
 
Very good rise in LNC S/P today- up 11c to $2.98. This is close to the 12 month high of $3.05.

From the latest ASX announcement on 23/3-

"Linc Energy is in detailed discussions with several parties in relation to the sale of this coal asset, whilst continuing to assess all of its commercial options. Teresa is one of the few remaining PCI coal assets in the Bowen basin of this size and potential, which is also close to established infrastructure."

It appears that the longer the potential buyers hesitate, the higher the final purchase price will be. Surely one buyer will bite the bullet soon?????
 
it was a very strong move yesterday on the back of a flat market. I think we saw similar things in the run up to the last sale. IMO we will hear something from Linc soon, the coal sector is very hot at the moment and you would imagine the interested parties would be wanting to take advantage of the current market prices sooner rather than later :2twocents
 
What has happened to the intra day volatility. It,s Friday and I need some drinking cash!
This sitting between 2.87 & 2,90 for the last few days is too stable for LNC, something has to give

Seems your wish was granted today tea :)

Apparently PB increased his personal holdings in the company.

LNC Holder.
 
What has happened to the intra day volatility. It,s Friday and I need some drinking cash!
This sitting between 2.87 & 2,90 for the last few days is too stable for LNC, something has to give

Drink tea instead.

PB may have $600m in holdings.., but this is a big investment in CASH $2.25m, it may be cash from his last dividend... How much does PB earn in cash income from his job? A$340,216? http://investing.businessweek.com/research/stocks/people/person.asp?personId=25109860&ticker=LNC:US
 
Creative work by Peter Bond. Gives the market a decent shove (which doesn't hurt the value of his other 200m plus shares...) , sets himself up for an extra slice of special dividend pie and practically screams at the market place that the next coal sale is just over the hill.:):)

Nice work and certainly one of the more colourful actions and announcements.

As a market analyst you would have to blind, deaf and dumb not to take notice of this action in the context of LNC's history.:2twocents:
 
Seems your wish was granted today tea :)

Apparently PB increased his personal holdings in the company.

LNC Holder.

Thanks Doggie.

Can't sell out now though, not with a lead like that from the big guy. Although, in relation to his existing holding this is relativly a small amount....must have found some change he left in ashtray of the VW during the Diesel dash.:D
 
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