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Posts on this website are general "tips" and nothing more than that and should never be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. Sparty's posts nearly always relate to companies that he either holds, has held or intends to hold.

Main ForumQld's vendetta against UCG causes LNC's departure from Qld and the ASX.

  • What a silly thing for Qld to do. When the CSM runs out and it will much sooner than many think.....Qld. will have lost the next big gas supply breakthrough by continuing Anna Bligh's anti-UCG vendetta. This latest silliness from Qld's govt. shows that Peter Bond CEO is making the right decision to move offshore and re-list in Singapore where smarter and larger capital is eager to get on-board the LNC UCG syngas and GTL game changer.


    Linc Energy says regulatory uncertainty in Qld has forced it to move a research facility overseas, leaving the future of 30 employees uncertain. Source:AAP

    Linc Energy will shut its underground coal gasification research and development facility in south-west Queensland and move overseas.

    The shutdown of the facility at Chinchilla will cost several million dollars and put the future of 30 workers at risk.

    Linc chief executive Peter Bond said the company expected to begin relocating by the end of 2013 to either Poland, Indonesia or Wyoming in the US, due to a frustratingly slow local approvals process.

    "The Queensland government has to take control of the regulator and make sure the policy is being followed rather than the regulator running to the beat of their own drum," Mr Bond told AAP.

    "There's a disconnect between the ministerial level and the mid-tier departments."

    The underground coal gasification (UCG) process converts coal into gas through combustion in the coal seam.

    Mr Bond said Linc would aim to retain all of the 30 affected staff and offer positions at the company's Australian or overseas facilities.

    "We're trying to limit redundancies," he said.

    "Ideally we'd like to have none."

    Linc said the decision came after a continuous two year operation at its UCG Gasifier 5 (G5) at Chinchilla facility.

    The completion of G5 operations marked the end of almost 14 years of operational trials and technology, research and development, he said.

    If the Queensland government approved the company's current G6 expansion it could potentially extend operations at Chinchilla for another two or three three years, Mr Bond said.

    However, he is not hopeful of a resolution after three years of waiting.

    "With the demand we're getting from locations like Asia it makes no sense to continue trying to keep the government happy when we've got other governments that are happy to work with us," he said.

  • Linc Energy said that had forced the company to abandon its commercial interests in Queensland.

    Instead, it will focus on offshore opportunities including in Asia, Africa, Russia and Poland.

    "... due to the regulatory uncertainty in Queensland over the last several years in particular, I do not believe that the developing UCG industry has been treated reasonably," CEO Peter Bond said.

    "I do not believe that we have been afforded a level playing field or offered a fair go with access to the basic right of statutory due process."

  • A crap outcome. I must say that I had trouble distinguishing between gas being lit from a farmer’s water holes and fraccing, UCG, shale gas, and when I thought about it, natural gas. They all seemed a big risk to our aquifers. On reflection they are teeny tiny risks as long as dilution is involved. The great artesian basin, on a world scale, is “IMMENCE”. Dilution is certain. The gas industry has failed miserably in telling the benefits of their work. The industry has not told how they can ensure that harm to the environment is minimized. Reason: Poor risk assessment.

    Campers in a National forest damage the place by their very presence. It is just a question of magnitude.

    Every oil, shale, or coal resource will eventually make its way down a subducting plate into magma where it will create pressure and explode as a part of a volcano.

    But are we releasing too much CO2 too soon.

    The answer to all this is simple. BEEF up a governmental environmental department with... wait for it .... Scientists to study and report back.

    Sack the politicians who put a moratorium on as they are weak ass gits.

  • Also, a good rig will not contaminate the water at all.

  • In support of my statement: When the CSM runs out and it will much sooner than many think.

    DOUBTS about the ability of Queensland's coal seams to produce enough gas to feed Gladstone's LNG export plants are growing, with claims that many wells are not producing as expected and that more gas could be needed.

    The concerns, which have been rejected by the three proponents spending $70 billion on projects to export gas through Gladstone's Curtis Island, have now been backed up by Houston-based drilling supplier Superior Energy Services.

    SES, which has turnover of more than $US4bn ($4.2bn) and employs more than 14,000 people around the globe, says its foresees growth in its eastern Australian business because poor well performance means more drilling in Queensland and South Australia.

    "When we are talking to the operators in Queensland, we hear from them that the coal-seam gas (wells) that currently have been drilled are actually not meeting the production expectations," SES head of Asia Pacific, Ruud Boendermaker, told investors in Houston last week. - See more

  • Linc Energy enters SGX Mainboard

    It has a market cap of $690m.

    In a release, Singapore Exchange announced the listing of Linc Energy Ltd on Mainboard, under the stock code of TI6.

    Linc Energy is a diversified energy company with operating control of a global portfolio of conventional and unconventional oil, gas and coal assets. The company has offices and operations in various geographic locations including United States, Uzbekistan, Poland and Australia. - See more at: http://sbr.com.sg/markets-investing/....tpMYceyf.dpuf

    My Take: Linc Energy seems to have a good day one on the SGX up ~28%.

    8,000,000 million shares traded at SGD= SGD$ 1.43 = ~AUD$1.28 a substantial price uplift from their last day open on the ASX at $0.995

    ASX: LNC to be delisted.

    New SGX (Singapore Stock Exchange) code is TI6. Trading began on the 18th-12-2013

    It is tradeable on etrade's global platform.

    http://sbr.com.sg/markets-investing/...-sgx-mainboard

    I have posted quite a lot about LINC over the past years and have a lot of interest in their novel, proven, UCG-GTL technology.

    This will be remembered as a one of our Queensland Govt's great follies but will also provide a "model" for technology rich energy and mineral companies to migrate to where money coupled with foresight is.

  • Hi Sparty, It has taken me some time but I now believe I understand the difference between CSG, Shale gas / oil, conventional oil, UCG-GTL, and LNG.

    Deep shale is the source of conventional oil and gas. Oil and gas leaks out of shale on a fault line into impervious layers to make deposits that we call conventional oil and gas. Tapping Shale Oil and gas is tapping very deep hydrocarbons. In Sydney coal and CSG is near surface. Totally different stuff. LNC would never access Sydney coal. Surface miner do that

  • Hi Alite, here are some of the criteria for UCG:

    • Depth of 100–1,400 metres (330–4,600 ft)
    • Thickness more than 3 metres (9.8 ft)
    • Ash content less than 60%
    • Minimal discontinuities
    • Isolation from valued aquifers


    There are some experimental projects that are using much greater depths. They will likely become an attractive option as the deeper you go the greater the chamber pressure and the more modifiable the output gas. This will have applications for tuning the "syngas" to what is required for plastics, fertilisers, aircraft fuel etc.

  • So, depth is important. The fire can only continue as long as Oxygen is pumped down. If there is no more O2 it all stops…. but the heat stays.

  • Depth as you say is important and very little if any heat would reach the surface if the chamber is below 100m.

  • Got it. I had (past tense) another area of concern. If coal is burned underground and the gasses brought to the surface, will a hole be created that could cause subsidence on the surface? Sparty… I'll let you answer.

  • If coal is burned underground and the gasses brought to the surface, will a hole be created that could cause subsidence on the surface?

    From the published literature subsidence is most commonly occurs as a result of underground mining or extensive groundwater extraction.

    This is due to: A void being created when coal is extracted from within the coal seam. This creates stresses, and results in a loss of support for the overlying rock formations, propagating fractures in an upward radial pattern in the rock above the void. Some rock will likely collapse into the void from the roof above the cavity.

    The factors that influence the stresses developed in the overlying formation, dictating the extent of fracturing and the likelihood of subsidence include the:

    Thickness of the coal seam extracted Width, or span of the coal extracted Depth and strength of the cover (overlying geology). From previous (50+) UCG trials there have only been a couple of documented subsidence occurrences recorded following UCG. These occurred when sites with shallow coal seams with weak or already fractured overlying rock were used. (Dumb/Greedy Yanks)

    Modern UCG has the advantage of being able to use all of the tool-sets currently in use to "visualise" the layers above and below the UCG chambers remarkably accurately. It also should be recognised that UCG has a very small footprint and consequently subsidence is confined to a small area.... the opposite of what occurs with coal seam methane water extraction and underground coal mining and surface coal mining.... the latter by definition.

    The recent innovations/modifications of the UCG chamber itself will also play a part in ensuring safety especially with the CRIP technology that allows for a very precise location of the site of the UCG chemical reaction that allows for the preservation of supporting columns throughout the coal seams.

  • Cheers, great info.

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