News: Wildhorse Energy says Linc Energy deal is off

Wildhorse Energy (ASX:WHE, LON:WHE) has revealed that the proposed Linc Energy transaction is off.

The company, in a stock exchange statement, said that Linc no longer wishes to proceed with the transaction contemplated by the Heads of Agreement, signed in February, and nor will it continue further discussions about a deal.

Via the intended transaction it was proposed that Wildhorse will sell its Hungarian underground coal gasification (UCG) in return for shares which at the time were worth around US4mln.

The plan was for Linc, a UCG specialist, to take on the development of the assets.

Wildhorse also told investors that as the Linc deal will not proceed it is now considering implications for the proposed rights issue, and in that regard it said it will provide an update to the market shortly.

It announced in June the plans for the A$1.4mln share sale, which was designed to boost working capital and allow management to assess the possibility of buying other projects.

Wildhorse said it is also now considering alternative options for both its uranium and underground coal gasification (UCG) assets.

Last month, Wildhorse told investors that it continued to be conscious of costs related to its UCG assets and is reducing all expenditure on them pending the possible sale of the assets.