Linc Energy – GasTech deal still subject to conditions
Linc Energy’s shares were in a Trading Halt earlier today prior to North American Company GasTech announcing that it would sell Linc 100% of it’s shareholding for $US50 million (AU$79 million) and Linc to pay for the transaction by issuing shares at an agreed price of $3.76 per unit. The deal is still subject to conditions.
Linc are projecting a positive outlook despite crafty shareholders are currently in fast turnover, “buy low, sell quick” mode; a typical trend in an uncertain market.
Linc Engery is positioning itself financially to open up a new line of research in what is said to be an unproven underground coal gasification technique on the Arckaringa water basin in South Australian Far North “Painted Desert” region.
On 14 November 2008 Linc Energy announced an exploration target upgrade to a range of 7 to 9 Billion tonnesˆ for areas EL3325 and EL3326, representing less than 5% of the total exploration area.
 In accordance with the requirements of clause 18 of the JORC Code regarding exploration, the following compulsory statement concerning exploration targets is included:
“[T]he potential quantity and [quality] is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.”
In Linc’s Drilling Summary, the company states its intention to upgrade the status of deposits at Arckaringa from Inferred Deposits to Indicated after further exploration.
Linc Energy’s analysis has indicated that the thermal (burnable) coal deposits rank as sub-bituminous coal, that is poor grade coal resembling or containing bitumen.
The Company plans to engage in a 40 hole drilling program. To date a total of 12 cored holes have been drilled with 93 exploration holes drilled by previous explorers.
The data will be used to further enhance the Company’s current resource statement from Inferred to Indicated status in accordance with the JORC Code and also to further increase and define the extent of the coal Basin.
Gastech owns 50 billion tonnes of coal in Powder River Basin, Wyoming, – It is only assumed that there is enough to produce 1 billion barrels of diesel and jet fuel. It is alleged that some of the Wyoming deposit may be conducive to underground coal gasification rather than mining.
Linc has also speculated that it would construct a model description of the proposed complex UCG plant in Wyoming during the next year.
To complete the deal with GasTech, which is still dependent on conditions, Linc hope to issue $US50 million of scrip at $3.76 per unit. Shares in Linc Energy rose from a low start of $2.60 to $11.59 during trading, after the announcement.
Linc hopes to develop it’s US expansion using a strategy of developing projects itself rather than licensing its trademark technology to other entities.
Coober Pedy Regional Times
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