re: Ann: Linc Energy Increases its Coal Lease... Green Iguana -...

re: Ann: Linc Energy Increases its Coal Lease... Green Iguana - you have raised a good point. A major factor in the development of the UCG sector in the future will be the extent to which barriers to entry exist and the capacity for players to retain those barriers over time by constant improvement.

As you say, technology (I would add capital costs) are more significant barriers to entry for LNC than for CNX and CXY (perhaps less so for CNX if they move toward chemicals production). Thus, it is easier for LNC to move toward the product markets occupied by CNX/CXY than visa versa. The energy majors can handle the costs of UCG/GTL, but have yet to blend the two technologies.

I would also expect it is easier for UCG players to move toward CSG production than for GSG players to diversify into UCG production. This may be a factor in how overlapping tenements issues are resolved via private negotiation in Qld.

Cheers
Bleasby