cxy trading halt, page-11

Mr McG,

With all due respect the Linc Chinchilla Operation is most likely the worldwide demo site for GTL using the OCG volocys FT reactor. In all reports Linc and OCG have said that testing of the FT reactor and associated GTL plant comissioned in may 2012 has gone well. If Linc were unable to buy OCG FT reactor technology then why/how did they get one as a launch customer and furthermore it is somewhat unlikely Linc would be the worldwide demo site if ongoing supply was an issue IMO.

The economics of QLD and Wyoming UCG projects going commercial will not be based purely on gas prices was my point. The project economics of the entire project which includes value adding Electricity and GTL that linc can bring to the table with the feedstock need to be considered in the overall analysis.

I agree the veil of secrecy with OCG is weird but maybe negotiations for worldwide UCG application are still in play and perhaps China is the sticking point for OCG. I doubt QLD is on the banned list given one is most probably already supplied. Velocys are US based, so i doubt Wyoming would have any issue with supply of FT reactors in the future if the R&D trial gets to go commercial.

The main hurdle in these locations (QLD and Wyoming) is government approvals.