Ladies and Gentlemen: the announcment: maybe 8 BILLION (!) metric non jorc tonnes.
14 May 2009
LINC ENERGY SIGNS CONTRACT FOR ITS FIRST
USA COAL ACQUISITION
· Linc Energy has signed a purchase agreement with GasTech Inc to
acquire 92,059 acres of Powder River Basin coal tenements in the
USA.
Linc Energy Limited (ASX:LNC) (OTCQX:LNCGY) is pleased to announce that it has
signed a purchase agreement to acquire a 100% interest in 92,059 acres of coal
tenement lease areas in the Powder River Basin in Wyoming USA from GasTech
Inc, a company based in Casper Wyoming.
The 92,059 acres being acquired have a coal deposit exploration target range of 7
to 8 billion metric tonnes (non-JORC Code standard) based on existing drilling data.
The Powder River Basin is the largest coal producing region in the United States
with current production from surface mines representing over 45% of the total US
production. The area being acquired by Linc Energy contains multiple subbituminous
coal seams ranging from 6 to 15 metres thick and occurring at depths in
excess of 150 metres, making them excellent targets for Underground Coal
Gasification (UCG) operations.
Linc Energy has agreed to pay US$5 million for the purchase of the GasTech coal
tenements. This agreement follows the Letter of Intent between Linc Energy and
GasTech which was announced on 3rd December 2008 and completes the first
phase of the proposed GasTech purchase, with the remaining area subject to a
further transaction pending resolution of pre-emptive rights held by a major
petroleum company.
The relevant coal tenements are now subject to the satisfactory completion of Linc
Energy’s remaining due diligence enquiries, with settlement of the transaction
expected in approximately 60 days.
ASX ANNOUNCEMENT / MEDIA RELEASE
CONTINUED…
Page 2 of 3
Immediately after settlement Linc Energy will commence the permit and approval
process required in order to undertake a UCG pilot programme to produce syngas,
which it has committed to completing within 24 months of the acquisition.
Mr Peter Bond, Linc Energy’s Chief Executive Officer said, "The completion of the
purchase of these coal areas from GasTech is an important step forward in Linc
Energy's international expansion programme. Linc will now have access to several
billion tonnes of coal in the state of Wyoming, one of America’s key energy
producing areas, which will allow the Company to move quickly to commercialisation
of UCG to produce GTL fuels like ultra clean diesel and Jet A1. As such, I believe
that the tenements being acquired are well placed and exceptional coal assets which
will provide the Company with an excellent stepping stone into the USA clean fuels
market."
Following completion of this transaction, Linc Energy will be establishing an office in
Wyoming to ensure completion of its UCG pilot programme and to support its
planned commercialisation of UCG to Gas to Liquid (GTL) in the USA.
For further information please contact Mr Peter Bond.
Peter Bond
Chief Executive Officer.
Information for Media:
Mr Peter Bond
Chief Executive Officer
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Ladies and Gentlemen: the announcment: maybe 8 BILLION (!)...
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