$20 trillion shale oil find surrounding coober, page-9

Interesting part on the coal asset spin-off, more legs in this I say:


Linc Energy

Linc Energy shares closed at their highest level in 16 months yesterday after the company revealed gangbuster estimations for the Arckaringa Basin and its search for a financing partner.

Fairfax reports that Linc chief executive Peter Bond also flagged the potential spin-off of the company’s coal interests, a nice bullet point for a stock that’s up from less than 60 cents to $2.16 in just two months.

Independent reports from Gustavson Associates and DeGolyer and MacNaughton put the basin, located in South Australia at between 233 billion and 103 billion barrels of oil equivalent, respectively. It’s quite a disparity, but the point stands that there’s a lot of stuff down there and Linc’s permits sit right about it.

Now the company has to find someone with the cash to fund exploration to make those estimations into something real, from which point appraisals can be drawn up.

Linc stock finished the session up almost 10 per cent after announcing the numbers and revealing that it has hired Barclays Bank to find a joint venture partner with some experience in the shale gas industry to fund the project.

The Australian shale gas sector is in its absolute infancy. The only player with the experience and cash to fund such a venture is BHP Billiton and given its cost cutting instincts as chief Marius Kloppers comes to the end of his tenure, Linc is likely to be looking for an international player.


http://www.businessspectator.com.au/bs.nsf/Article/Linc-Energy-Peter-Bond-Discovery-Metals-Cathay-For-pd20130124-48RMD?OpenDocument&src=sph