stick it to em bondy, page-2

RESPONSE TO INACCURACIES IN THE AUSTRALIAN NEWSPAPER ARTICLE
OF 7 AUGUST 2008
This announcement is in response to an article on page 19 of The Australian
newspaper today in relation to Linc Energy Limited’s (ASX : LNC) ongoing
Underground Coal Gasification (UCG) activities in Queensland.
The article contains a number of inaccurate statements concerning the status of Linc
Energy’s discussions with the Queensland government regarding approval of its
production tenures in the Surat Basin and environmental assessment.
So as to correct the public record, Linc Energy notes the following:
• The allegation (quoting an unnamed “spokeswoman” from Minister Wilson’s
office) that there is a 3 year moratorium on the granting of UCG production
tenures in Queensland is untrue.
• Linc Energy is continuing with the normal process for tenement approvals in
relation to its planned commercial operation at Chinchilla.
• The Queensland government is fully aware of Linc Energy’s plans and,
despite lobbying from the coal seam gas sector, has not mandated a
moratorium on the granting of production tenures for UCG.
• Since the commencement of Linc Energy’s UCG trials at Chinchilla in 1998,
the Company has been regularly supplying data, including groundwater
monitoring data, to the Queensland government’s Environmental Protection
Agency. In that time, Linc Energy can clearly show that not only does UCG
not have a detrimental impact on groundwater, but that Coal Seam Gas
(CSG) production is coming up as the biggest groundwater issue of the Surat
Basin (reference “Company Dilutes Truth” article – Chinchilla News & Murilla
Advertiser 31 July 2008 and “Why Qld Farmers are Dam Worried –
Queensland Country Life 31 July 2008).
• Linc Energy’s UCG and Gas to Liquids (GTL) project at Chinchilla was
declared a project of State significance in 2007 and as such the Company
has been voluntarily undertaking a comprehensive environmental impact
statement process since that time. Whilst this process will provide additional
information to the government, Linc Energy has never been required to
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undertake any “new demonstration trials” by the Environmental Protection
Agency.
• To date, no coal seam gas producer has provided an environmental impact
statement to the Queensland government so as to allow a detailed
assessment of the environmental impact of their production process,
particularly with respect to its effect on groundwater and surface
contamination.
• In terms of the reference to incompatible industries as in one industry must
succeed at the expense of the other, this statement is also incorrect and
inaccurate. For example, the Queensland Gas Corporation (QGC) are
suggesting they are targeting 7255PJ of CSG for their future project/s. QGC
also admit that Linc Energy’s main site in Chinchilla contains only
approximately 32PJ (on a 2P basis) of CSG. If the entire 32PJ was removed
from that CSG total, the multi-billion dollar UCG industry Linc Energy is
proposing would have a minimal effect of less than 0.5% on QGC alone. Yet
in return, Linc Energy has the potential to create a minimum of approximately
210.000.000 barrels of oil (on the coal area that QGC admits to housing only
32PJ of CSM potential) over a 30 year period.
• Assertions of incompatibility between CSG and UCG are not accurate. As is
the case between CSG and underground coal mining, the question is not one
of incompatibility, but one of best use of resource.
• The article fails to make reference to any other of Linc Energy’s significant
UCG activities in other parts of Australia or the world.