Australian Shares Sparty's Blog
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LNC•LINC ENERGY could be one of the world's top oil producers
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If I was Peter Bond (LNC CEO) I'd be seriously thinking about having a chat to John Heugh (CTP CEO).
LNC is an avowed and accomplished UCG GTL company that is going to have a serious amount of money at some time in the future..... With over a billion** of cash LNC would be in the position to swallow CTP just out of several months interest.
<b>LNC would then have the largest holding of UCG suitable coal of any company in Australia and possibly the region.</b>
Moreover the ex-Sapex and CTP coal is in semi desert-desert with some of the lowest population counts in Australia. Dry, arid, infertile ground.
LNC have already decided to dump Qld... (thanks Anna) and are moving their operations to SA to utilise the several billion tons of coal they bought from Sapex for a song.
Having acquired CTP's trillions tons+ of UCG suitable coal plus CTP's other goodies, for just on $20m*, LNC could then be in the position of becoming one of the world's largest oil suppliers with an almost endless amount of energy at their disposal.
Thus LNC could provide Australia with oil independence and a huge amount of foreign exchange input for several centuries and at the same time take out the other emerging players by virtue of strength.
For those that haven't been following the UCG-GTL story LNC have demonstrated that 1 ton of coal can be converted to 1.7 BOE for around $28 - $35 per barrel.
* CTP Mkt Cap ~$60m Cash $35m
** LNC have three large high quality coal deposits for sale in Qld. Several overseas companies are looking at them at the moment and there seems to be a sale of at least one within weeks being possible.
