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LNC - Linc Energy

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Good to see the sp hit $3 today. Surely a breach into $3 + soon.
Would be nice to see a percentage rise similar to that of Cougar's today

LNC holder.
 
dogeatdog said:
Good to see the sp hit $3 today. Surely a breach into $3 + soon.
Would be nice to see a percentage rise similar to that of Cougar's today

LNC holder.
Click to expand...

That's really sweet but Couger shareholders (grrrrrr...) have been basically hung drawn and quartered in the past few months. .7c rise after dropping from 12c plus to 1.5c ? Just an ugly, ugly set of figures and lot's of hope that some sort of phoenix might rise from the ashes.

I hope you weren't thinking that maybe LNC should drop to say 40c so it could make a jump to 60c ? ( Of course not...!)
 

I was suggesting a 40% rise in one day, would be rather pleasant for Linc holders.
I do hope your not one of the unfortunate Cougar share holders who've been "hung drawn and quartered" as you put it Bas.
 
http://www.lse.co.uk/regulatory-new...Proposed_acquisition_of_PowerHouse_Energy_Inc


"PowerHouse has executed contracts for the following sales to date:



- PowerHouse Energy Australia Pty Ltd - sale of a 5 tpd waste to energy system and a 25 tpd Pyromex UHTG reactor

- Linc Energy Ltd - sale of a 25tpd Pyromex UHTG reactor

- PowerHouse Energy New Zealand Ltd - sale of a 5 tpd waste to energy system


...


In March 2011, Linc Energy invested US$6 million and granted PowerHouse the right to purchase and use its Fischer-Tropsch GTL system technology for PowerHouse's waste to energy applications in return for a 10 per cent. interest in Pyromex. PowerHouse has granted Linc Energy a perpetual, exclusive licence to use, own, fabricate and operate Pyromex systems for above ground coal to syngas production of 1 MMcf per day and greater in all territories (with the exception of Italy which is excluded). Linc Energy will pay a licence royalty of US$0.10 per barrel of Linc Energy's Pyromex-produced liquid fuels generated by using the Pyromex system.

...


The Enlarged Group's short term focus in the area of research and development will be the development of a 100 tpd unit with the support of Linc Energy, for whom this will be particularly applicable based on their substantial coal deposits."



I think TPD is refering to tonnes per day input.
 
I wonder if PB has thought about Garbage to Diesel, gas and electricity, now that would really be turning something of no value in value.. I read in the above link this pyromex UHTG is self sufficent supplying itself with enough electricity to run itself. Its probably heading off on too much of a tangent from the major goal of UCG-GTL.


The Pyromex System

The Pyromex system enables localised low emission or emission free conversion (disposal) of waste materials with energy recovery rates of approximately 90 to 95 per cent. The system uses approximately 15 per cent. of the syngas as fuel to generate its own electrical power requirement, resulting in approximately 80 per cent. of the produced energy available for sale. No toxic or harmful residues are formed during the thermal reduction of the waste material into fuel energy.


I also wonder if Shale to Diesel would be profitable, and if the Exploration Licences in South Australia and USA include shale.
 

I believe Lincs 10% interest in AFC, based in the UK, are able to use land fill material etc, to create electricity. Not so sure they can produce liquid fuels.

LNC holder.
 
Might be worth updating some information on AFC's (Alkaline Fuel Cell) progress in UK.

LNC has a 10% stake in the company and it represents an outstanding opportunity to utilize UCG as the source of a cost competitive no CO2 emitting base load power station. In my view being able to rapidly replace conventional coal fired power stations with cost effective non polluting alternatives would be one of the greatest gifts LNC and AFC could offer all of us.

I've attached a report rom a UK AFC bulletin board.


(For some reason I can't cut and past the link. Sorry. Look up AFC energy Interactive Investor>)

_______________________________________________________________

LNC had a number of staff members at the AGM. (fairly obvious given their stake in the company)
 
http://www.abc.net.au/news/stories/2011/04/08/3186535.htm?site=southqld

...

Australia spent $16 billion last year importing petroleum.

"By 2015 that [deficit] could blow out to $30 billion a year. For that reason these UCG ventures are very important in the overall debate about Australia's energy security," Mr Ferguson said.

"Peter Bond has taken substantial risks to get Linc to this point, to have this road trip to prove the value of synthetic fuel in Australia.

"The trip has proved the capacity of us to create a new industry in Australia and in doing so to resolve our supply-side problems in terms of energy security from a transport point of view."

...
 
Landline Video on UCG

Video

http://mpegmedia.abc.net.au/landline/video/201104/r749121_6195200.flv


http://www.abc.net.au/landline/content/2010/s3187207.htm

I thought they could have covered LNCs efforts with ground water monitoring, casing, safety

"Linc Energy notes that the groundwater monitoring data which it has collected at
Chinchilla and supplied to DERM over the past 11 years evidences the fact that
there has been no impact on the quality of the groundwater of adjacent property
holders."http://www.lincenergy.com/data/asxpdf/asx-229.pdf


"LINC ENERGY RECEIVES POSITIVE REPORT FROM INDEPENDENT EXPERT PANEL
• Linc Energy’s Chinchilla demonstration facility goes from strength to strength
• Independent Scientific Panel on Underground Coal Gasification appointed by Queensland Government highlights Linc Energy’s ‘significant technical capacity’ and ‘world’s leading practice’
• Strong endorsement of Linc Energy’s technology and environmental management, as Linc Energy’s UCG Gasifier 4 hits 12 months of continuous operation
Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to confirm that it is business as usual for the Company’s Chinchilla Underground Coal Gasification (UCG) to Gas to Liquids (GTL) demonstration facility in south west Queensland.
This follows the announcement last Friday by Queensland Minister for Climate Change and Sustainability, The Honourable Kate Jones, to end Cougar Energy’s Kingaroy UCG trial on the basis that Cougar Energy could not demonstrate to the Department of Environment and Resource Management and the Independent Scientific Panel that it could recommence its operations without an unacceptable risk of causing environmental harm.
The Company is pleased to note that the same Independent Scientific Panel in its report on Linc Energy acknowledged Linc Energy’s database containing a considerable quantity of information, its significant technical capacity, the fact that the Chinchilla demonstration facility is regarded as world’s leading practice and its willingness and openness in discussing its operations.
The Queensland Government has accepted the Independent Expert Panel’s recommendation that Linc Energy’s demonstration facility continue as planned. The Company remains on track to complete its demonstration facility trials in accordance with its previously announced timelines.
Mr Peter Bond, Chief Executive Officer, said, “Linc Energy’s superior technological capacity together with its dedication and commitment to professional environmental management has resulted in this pleasing outcome as we approach commercialisation of this valuable technology.”
“This is an endorsement of our operations and of our unwavering commitment to environmental management and the wellbeing of the community around which we operate.”"
http://www.lincenergy.com/data/asxpdf/ASX-LNC-312.pdf

Otherwise, all in all, great review for Linc by Landline
 
This is a good story from the "Australian", which will hopefully bolster the case for UCG and Linc.

www.theaustralian.com.au/national-affairs/fuel-imports-grow-as-shell-plant-closure-axes-500-jobs/story-fn59niix-1226038108632

LNC holder.
 
Abbot point decision pending...

"a deal expected to fetch up to A$2bn"
http://www.ifre.com/australia-banks-circle-a$2bn-abbot-point-sale/629766.article

"Bids were due on Friday and it's believed Tinkler lodged an offer with offshore investment funds. Canada's Brookfield Infrastructure Group, long touted as the front-runner in the auction for the 99-year lease to operate the terminal, and a consortium including Hong Kong infrastructure group CKI and Deutsche Bank's infrastructure fund REEF are understood to be among other bidders to have submitted offers.

India's Adani Group is the other party in the process."
http://www.theaustralian.com.au/bus...bbott-point-deal/story-fn7rgef9-1226036870406

"The competition regulator was due to rule on Adani's bid last week, but has requested more information, suspending its timeline for the decision. It's believed the state is on track to meet its $1.5bn price objective."
http://m.theaustralian.com.au/OpinionNews/fi298330.htm
 
Maybe Dudgeon Point is the prioirity for Adani..

"From Queensland, there are five port options ”” Brisbane, Maryborough, Gladstonne, Hay Point and Abbott Point. But for Adani, to ship coal out from Australia, the last two choices are the best bet.

Adani has received permission from the local port authority to do a feasibility study to construct its own port and coal terminal at Dudgeon Point, as part of an expansion programme of the port of Hay Point. It will have to spend over $600 million (nearly Rs 2,700 crore) on a coal terminal alone that can handle their load factor.

There’s competition, too
This proposed site is very near to Dalrymple Bay Coal Terminal (DBCT) and Hay Point, being run by BHP Billiton and Mitsubishi together as captive terminals. But both BHP and DBCT have also shown interest in additional coal terminals as they need excess terminal capacity for their operations. Their current captive terminals are fast reaching their peak as BHP is increasing annual production.

If Adani does finally get selected, then it will be a cheaper and easier logistical route and they will only need to invest in a 150-km stretch to Clairmont from their mine site where they is no rail linkage today. From that point onwards till the port, there are existing rail links used by others and only additional lines will need to be put in. The total combined investment will then come down, giving the Adanis considerable leg room.

The other option is the port of Abott Point, which has considerable excess capacity to handle the extra load. But to access that, a 500-km railroad needs to be built at an estimated cost of $3 billion (nearly Rs 13,500 crore).

Adani plans to mine around 52-60 million tonnes of coal every year to bring it to India and use some for trading, with operations beginning in 2014.

While Adani would only pay A$500 million (Rs 2,100 crore) as an upfront cash payment, the rest is payable as a A$2 (Rs 41.60) per tonne royalty for the first 20 years of production from the mine.

"

http://www.business-standard.com/india/news/adani-to-spend-4-bnaussie-mine/409684/
 
Investor Linc out.

http://www.lincenergy.com/investor_linc.php?articleId=52

X-GAP looks like a great management System

"We’ve implemented a system of management called ‘X-GAP’ where we as a team set the goals we need to achieve every 90 days. Each team then signs a contract that reflects what they ‘must’ achieve to reach their goals and how these goals help us as a group reach Linc Energy’s overarching goals. The gap between the plan and its execution is called the ‘execution gap’ or X-GAP for short. This model is all about the efficiency of execution. The reason I’m focussing on this is simple – Linc Energy has huge opportunities ahead of itself and as our business model grows, the key issue to driving significant success for Linc Energy and its shareholders is how well we can ‘execute’ our business plans. How skillfully we can drill a well, or explore for coal and oil. How proficiently we can construct a pipeline, or set-up a UCG operation, or execute the construction of a GTL plant."

Does this mean the indians are interested? Like a tiger?


"The Teresa coal sale is ongoing and we are in the middle of a number of sale options and negotiations. I will say that in my 30 years of involvement in the coal industry I’ve never seen a better coal market. There really is tremendous potential for Linc Energy to benefit from its Australian coal assets. I will keep you informed when a definitive and material coal deal is finalised. By the way, keep an eye on what’s happening with Linc Energy in the USA. Our North American team is kicking some serious goals! Well done to all of the Linc Energy USA Team – you guys certainly have the tiger by the tail."
__________________________________________________________________________

Regards,
J

http://www.youtube.com/watch?v=0_XAPku7SgE

ive made my beer money for the next couple years off unv 36c since last months hit.. ;p topping up LNC (might sell my EVG to top up more LNC)
holding LNC LT
 
Last edited by a moderator:
"The Teresa coal sale is ongoing and we are in the middle of a number of sale options and negotiations. I will say that in my 30 years of involvement in the coal industry I’ve never seen a better coal market. There really is tremendous potential for Linc Energy to benefit from its Australian coal assets. I will keep you informed when a definitive and material coal deal is finalised. By the way, keep an eye on what’s happening with Linc Energy in the USA. Our North American team is kicking some serious goals! Well done to all of the Linc Energy USA Team – you guys certainly have the tiger by the tail."


Now that coal sale has the potential to add $1.00 to the SP and potentially bring another dividend to holders when it occurs. Whether it's two days, two weeks, two months or two years away is anyones guess.

It's this cheap oilfield purchase that I have been looking at today and I like what I have found.

Firstly the cost of 20mm for 27 856 acres works out to just under $718.00 per acre and industry prices in that part pf the world are moving to $5k per acre with some element of risk. So PB has stitched up a good deal here acreage wise from Rancher Energy who got caught in the credit crunch in 2009 and ended up in chapter 11. Here is the relevant SEC report from Rancher Energy...

"We acquired our oilfields in late 2006 and early 2007 with the intention of significantly increasing crude oil production through an enhanced oil recovery (EOR) project utilizing modern CO2 injection techniques. The planned EOR project required a significant amount of capital to carry out. In October 2007, we borrowed $12.24 million from GasRock Capital LLC (GasRock), an investment bank, to serve as a "bridge loan" to enable us to complete plans for the EOR project while we sought a larger, longer-term source of capital to conduct the project. At least partially due to the severe disruptions in credit and financial markets, coupled with extreme volatility in crude oil prices, we were not successful in raising the capital to repay the bridge loan and commence the project. Following a series of amendments to the GasRock loan agreement and extensions of the maturity date, we were unable to repay the loan on the amended due date of October 15, 2009. On October 16, 2009, GasRock notified us the failure to repay the loan constituted an event of default and notified us of their intention to foreclose on the assets pledged as collateral for the loan. GasRock instructed our bank to transfer all cash we had on deposit to GasRock, leaving us without funds to operate the oilfields or pay overhead.

On October 28, 2009, we filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Colorado (the "Court") (Case number 09-32943) We will continue to operate our business as "debtor-in-possession" under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and the order of the Court, as we devote renewed efforts to resolve our liquidity problems and develop a reorganization plan."


So can the fields be brought up to the level of production he maintains they can? 10k BOEPD is a big step up from their current production of 190!!!

http://www.cenovus.com/operations/oil/weyburn.html

Presumably this can be achieved looking at the results from the Weyburn field in Canada.

Thing is LNC will need lots of CO2 for injection into the wells. Right now there is a CO2 pipeline in place which LNC can utilise until they can harness the CO2 generated as a a byproduct from the UCG plant planned for construction in Q4 2011. Feeding this plant is the 7-19 billion tonnes of coal LNC have in the Powder River basin that they brought for 50 mm in a script only deal valuing LNC at $4.03 a share.

PB is starting to look like quite the master deal maker here!

From memory capex for a GTL plant was considered too high in AUS so the Powder River basin looks like a goer for LNC to me.

Lower capex for GTL plant, more accomodating local govt, great resource and the CO2 waste goes to flooding an oilfield back into commercial production!

Awesome!

Pretty much all summarised here in the AGM presentation from last year. http://www.lincenergy.com/data/media_news_articles/LNC-Presentation-571.pdf

I might be behind the curve a bit here but the market isn't that far ahead either at this stage IMHO.

I will be looking for an entry in the near future ...again!
 
Before I raise a couple of concerns I would like to say that I am currently a Linc Energy stock holder and have been for nearly 5 years now. I like what the company are doing in terms of diversification away from the purely UCG company that they were some years ago and hope very much that it all works out for them (and us). I have 2 concerns which I thought I'd raise to see what others points of view were.

1) Underground Coal Gasification (UCG) is why many of us are in this stock. It offers the ability to use a yet unallocated resources (stranded coal) to generate either electricity or when combined with the GTL process to produce liquid fuels. This makes perfect sense as a way forward as it provides a bridge between our dependance on liquid fossil fuels and a distant future when some other alternative is developed. As Linc have now proven the process and driven across Australia on the results it is now just a matter of proving that it can be done in commercial quantities at somewhere near the USD 30 per barrel cost quoted and the stock should go straight up!

My concern with this is that GTL with already abundant, easily accessible Natural Gas may be a cheaper alternative? The US already has an excess of natural gas resulting in a really cheap price at this point in time. Why doesn't anyone do GTL on that (is natural gas anywhere near syngas?) to produce diesel/jet fuels and if they can, how does the cost compare with Linc's coal derived solution? Any ideas out there? Could this be why Linc's focus on UCG has dimmed somewhat lately?

2. My second concern is with the EOR using Co2. There is a good article on Fracking here http://www.caseyresearch.com/cdd/fracking-controversy (start at the second section) which gives a good idea of the process and some of the concerns although doesn't cover CO2 use specifically. There are plenty of articles on the internet on CO2 fracking and as you may expect some are rather scary. Here are some examples picked from the first page of google:-

http://fromthestyx.wordpress.com/2008/08/13/enough-fracking-chemicals-in-the-water-to-make-you-sick/
http://citizensagainstco2sequestration.blogspot.com/2009/06/fracking.html

Whether they (and the numerous other articles) are the result of valid concerns, mis-management by unprofessional companies (and there are certainly those in the UCG arena) or exaggerated fears is not really important here. My concern with this is that Linc has built solid foundations on being a green, environmentally caring company but is now heading full bore into another newish technology which is already firmly in the negative public eye and easily able to be a company killer if mistakes are made by Linc and/or other less professional operators in this field. Is this the sensible thing to do?

p.s. I am not an environmentalist (except for having a desire for us to not totally screw up the planet) and am certainly not a chemist so apologies if the above concerns are lacking detail? I would be interested to hear what others think though?
 
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