Post on 24-Jun-2020
ABN: 60 076 157 045
ACN: 076 157 045
Smellie & Co Building
32 Edward Street
(GPO Box 1315)
BRISBANE QLD 4001
Telephone: (07) 3229 0800
Facsimile: (07) 3229 6800
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ASX ANNOUNCEMENT
1 March 2012
LINC ENERGY PRESENTATION TO ASX SMALL TO MID CAPS CONFERENCE
Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) wishes to inform the market of a general interest presentation (attached) which will be made today to the ASX Spotlight Small to Mid Caps Conference.
Information for Media:
Heather Stewart
Media Manager
Phone: +61 7 3229 0800
E-mail: heather.stewart@lincenergy.com
ASX Contact:
Brook Burke
Company Secretary
Phone: +61 7 3229 0800
E-mail: brook.burke@lincenergy.com
Information for Investors:
Anesti Dermedgoglou
Country Investor Relations Manager - Australasia
Phone: +61 7 3229 0800
E-mail anesti.dermedgoglou@lincenergy.com
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ASX ANNOUNCEMENT
CONTINUED…
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Company Profile
Linc Energy is a globally focused, diversified energy company with a strong portfolio of coal, oil and gas deposits. It is Linc Energy’s purpose to unlock the value of its resources to produce energy to fuel the future.
A publicly listed company, Linc Energy is the global leader in Underground Coal Gasification (UCG), which delivers a synthesis gas feedstock to supply commercially viable energy solutions – such as electricity, transport fuels and oil production – through gas turbine combined cycle power generation, Gas to Liquids (GTL) Fischer-Tropsch processing and Enhanced Oil Recovery.
Linc Energy has constructed and commissioned the world’s only UCG to GTL demonstration facility located in Queensland, Australia. This facility produces the world’s only UCG to GTL synthetic diesel fuel. Linc Energy also owns the world’s only commercial UCG operation, Yerostigaz, located in Uzbekistan. Yerostigaz has produced commercial UCG synthesis for power generation for 50 years.
Linc Energy is on a rapid global expansion path to commercialise its portfolio of resources, with established offices across three continents in the United States, the Europe and Australia.
Linc Energy is listed on the Australian Securities Exchange (LNC) and can also be traded in the United States via the OTCQX (LNCGY).
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ASX Spotlight
Small to Mid Caps Conference
1st March 2012 - New York
Anton Rohner CFO
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DISCLAIMER This presentation contains forward looking statements that are subject to risk factors associated with
the petroleum and mining businesses. It is believed that the expectations reflected in these
statements are reasonable, but they may be affected by a range of variables and changes in
underlying assumptions which could cause actual results or trends to differ materially, including but not
limited to price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and
production results, gas commercialisation, reserve estimates, loss of market, industry competition,
environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and
financial market conditions in various countries and regions, political risks, project delay or
advancement, approvals and cost estimates.
The oil resource estimates in the announcement were compiled by Christopher E Mullen, employee of
Linc Energy, and Scott J. Wilson of Ryder Scott Company LP each of whom is qualified in accordance
with ASX listing rule 5.11 and who has consented to the form and content in which this statement
appears.
The information in this report, where indicated, relating to coal resources is based on information
compiled by Troy Turner, who is a member of the Australian Institute of Mining and Metallurgy and who
is employed by Xenith Consulting Pty Ltd. Certain other information is based on information compiled
by Tim Jones, a former employee of Linc Energy. Messrs Turner and Jones each has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and
to the activity which they are undertaking to qualify as a competent person as defined in the 2004
Edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves”. Messrs Turner and Jones each consents to the inclusion in the report of the matters based
on their information in the form and context in which it appears.
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CORPORATE SNAPSHOT Linc Energy is an innovative, forward-thinking energy company and the world
leader in clean coal technology using Underground Coal Gasification (UCG)
ASX 200 publicly listed (ASX:LNC), and in U.S. (OTCQX:LNCGY)
Market Capitalization ~ US$755 million (February 23, 2012)
Issued Share Capital ~ 508.2 million shares on issue.
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OIL & GAS Linc Energy has over 182,000 acres of
O&G leases in North America with over
17.5mn barrels of 1P oil reserves and an
estimated 1.2 Bn barrels of OOIP
proposed to be developed into
operations in the short to mid term
Production from the
USA is expected to
cover Linc Energy
operational costs
from August 2012
current 2,400
by end 2012 5,600
Net bbl/day
current 150
by end 2012 400
Net bbl/day
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GULF COAST OIL & GAS
One of the few medium sized independents in the Gulf
Coast which is materially oily (>90%) and entirely operated
by the owner
In October 2011 Linc Energy acquired 13 producing oil fields consisting of
156 leases covering ~13,400 acres in Texas and Louisiana
Proved reserves: 16.5MMboe (94% oil, 25% PDP)
PV-10 valuation : $576 million
300mn Reserve Based Lending facility is in place, with 130mn called to
date. All in rate currently ~3.1%
Net daily production: ~2,400 (Net)bbls/d (94% oil)
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GULF COAST OIL & GAS (con’t) Immediate strategy includes an aggressive drilling plan and well
optimization to increase production to 6,900 (Gross) 5,600 (Net)bbls/d
Program commenced for completion of 41 new wells and 20 recompletions
and workovers before 31 December 2012
45 oil & gas professionals on staff.
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WYOMING OIL & GAS
Presently producing ~190 (Gross)
150bbs/d (Net) with opportunity to
expand production to over 10k
bbls/d through CO2 flooding
CO2 interruptible contract has been signed with
EXXON. UCG CO2 and other alternative CO2 sources
are likely to be available from end of 2013
Successful CO2
injection has resulted
in incremental oil
production
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CO2 INFRASTRUCTURE &
PROJECT MAP OF WYOMING
ExxonMobil
Shute Creek: Generates 430
MMCF/D CO2
Devon Beaver
Creek: Production 4,200 BOPD
Anadarko Monel Unit: Production 5,000 BOPD
Merit Lost Solider/Wertz: Production 7,000 BOPD*
Anadarko Salt
Creek: Production 12,000 BOPD
*Not all production is from CO2 EOR
Map from State of
Wyoming
Geological Survey
Glenrock Oil and
Gas Assets
UCG Assets
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ALASKA Umiat: Estimated OOIP of
~1.2bnbbls with Net Probable of
108MMBoe and Possible Reserves
of 93MMBoe, as per Ryder Scott
report
Peak production estimated to be in
excess of 50,000bbls/d, with upside
through further drilling expected in
winter 12/13.
Umiat
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1. Queensland Coal Resources
2. South Australian Coal
Resources
3. Carmichael Royalty
In Queensland alone, Linc
Energy has 24 million tonnes of
measured, 584 million tonnes of
indicated, and 743 million
tonnes of inferred JORC
compliant reserves within 3 of its
7 controlled tenements
(breakdown of detail on the next
page).
COAL F
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COAL ASSETS – QUEENSLAND Teresa
JORC resource of 852Mt* (Inferred) with mine plan of
310Mt** (25 Indicated and 286 Inferred) for PCI
Mining lease application has been submitted and EIS
commenced for a 6.4Mtpa underground mine
First coal 2015
Pentland
JORC resource of 266 Mt.** (176 Indicated and 190
Inferred)
Expected to produce c. 3.0 to 4.0Mtpa of export
grade thermal coal.
Great Northern Leases
Exploration planned in late 2012
Biloela
The drilling program was completed in late 2010.
Surat
Chinchilla - JORC resource certified of 775Mt.** (24
Measured, 383 Indicated and 368 Inferred)
Tipton
Drummond Basin
Analog to Blair Athol resource targeted, potential
coking coal
Rathdowney
Drilling planned for 2013
* Competent Person Tim Jones, ** Competent Person Troy Turner , Xenith Consulting Pty Ltd F
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Hail Creek
Curragh
Kestrel Jellinbah East
Yarrabee
Blackwater
Dawson Mining Complex
Baralba
Rolleston
Cook Minerva
Lake Lindsay
Saraji Peak Downs
Isaac Plains
Lake Vermont
Norwich Park
German Creek Middlemount
Coppabella
Carborough Downs Moranbah Nort
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Goonyella Riverside
North Goonyella
Sonoma Collinsville
Eastern Creek
Oaky Creek
Clermont
Blair Athol
Source: Queensland Government
Department of Mines and Energy
BOWEN
BASIN
TERESA
Railway line
Railway line (proposed)
Burton
Port
Gladstone / WICET / 3TL
Dalrymple Bay/
Hay Point / Dudgeon Point
Abbot Point
Gregory Crinum
German Creek East
Ensham
Alma Point / Fitzroy Terminal
One of the last remaining
Coking/PCI Coal of size and
quality left in Australia Potential for a 5 to 6.4 Mtpa (product
tonne) underground operation for 30
years yielding PCI coal
Initial JORC resource statement of 852
Mt Inferred in November 2008
JORC resource statement focussed on
Corvus 2 seam only of 310Mt: 25Mt
Indicated, 285Mt Inferred, Xenith
Consulting Pty Ltd
Early production mid-2015, Full
production mid-2016
Teresa tenements cover c. 357km2 in
the east of the Bowen Basin, 17km north
of Emerald
Within Queensland’s premier coal
province (near existing coking coal mines
of Kestrel, Crinum, Gregory and
Oaky Creek)
Good existing infrastructure
connections
Upside potential in north east of EPC
1226
Mining lease application has been
submitted for 9000ha site and EIS
commenced.
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TERESA – MINE PLAN
Coal seam depth of 130 metres means the
preferred method of mining the resource is via
underground extraction. Extraction method
proposed in the preliminary mine development
plan is retreat longwall extraction
A coal preparation plant (CHPP) will be
constructed on-site. The CHPP will handle
around 1,000 tph of coal and produce a PCI
product with a yield of approximately 80%
Reclaimed coal will be transferred to a load out
bin located over the mine rail balloon loop.
Approximately 15 train loads of coal will be
shipped per week. The Project will be capable of
exporting 6.4Mtpa of product coal
Final rail corridors and port options are currently under investigation. The final corridor
alignment will be located based on engineering and environmental constraints.
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COAL ASSETS –
SOUTH AUSTRALIA
Walloway Basin
Thick brown coal formations
have been confirmed and a
project technical review is
currently underway for the
Walloway Basin assets
Exploration target identified
Over 1,000 metres of drilling
in the region, including 63
metres of 85mm core (PQ)
was completed in 2010/11.
Arckaringa Basin
East Wintinna and Weedina
Exploration target identified.
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Linc Energy sold the Carmichael
Coal asset to Adani for A$500mn
cash and A$2/tonne royalty (plus
CPI) for 20 years of production
Carmichael Coal tenement
(formerly known as Galilee) is being
developed by Adani Enterprises as
an 60Mtpa mine with production
expected to commence in 2015
The tenement is located in
Queensland’s Galilee Basin, 160
kilometres northwest of Clermont
and had a JORC resource of 7.8
billion tonnes at the time of
divestment.
CARMICHAEL
MINE – Adani
Royalty
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CLEAN ENERGY
Only company in the world to have successfully demonstrated the conversion of underground low-value coal to liquids via the (UCG/GTL) process
Linc Energy has patents across the technology
Our technology, operating experience and proof of delivery empowers us to beneficiate $1/t coal to $100/t ultra clean fuel for ~30 per barrel (19 cents per litre)
The UCG-GTL visual and environmental footprint is minimal
50 years experience at Yerostigaz, Uzbekistan UCG operator for over 12 years experience of UCG to synthetic fuel at Chinchilla operations, Australia; with 5 generations of technology development
Targeting a roll-out of first UCG–GTL commercial site selection and pre-FEED studies in 2012
The G5 design and operation reflects the readiness of Linc Energy processes for commercialisation
Linc Energy resources in UCG include large targets in Alaska (Cook Inlet), WYO (new large PRB opportunity for CO2 oil and gas tertiary recovery and power), Poland, South Africa and sourcing resources in Asia.
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POWDER RIVER BASIN
Linc Energy has 173,327 acres of coal leases across the states of Wyoming, Montana and North Dakota
Site selection and drilling is underway
Linc Energy has offices in Casper, Wyoming and Denver, Colorado. F
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UCG converts low value coal into syngas via the coal deposit being heated
creating a chemical reaction called gasification (not combustion)
Horizontally & vertically drilled wells become the injection and production wells
The Syngas is suitable for production of transportation fuels (GTL), fertiliser
(chemical) and as a feedstock for power generation
Linc Energy UCG process can be conducted in a safe environment as
demonstrated by Yerostigaz (50yrs of operations, owned by Linc Energy) and
Chinchilla (12 years operations with over 30k water samples over 1 km2).
CLEAN ENERGY– UCG
>1000 feet
<60 feet
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UCG PROGRESS Gasifier (Generator) 5 operations at
Chinchilla is commercial and has
been operating since September
2011
Gasifier 4 uses world-first Linc
Energy developed UCG
technology, with syngas produced
in 5 hours Horizontal well technology
Adoption of oil and gas technology
for reliability
and repeatability
Increased resource recovery and
gasifier life
Oxygen enrichment
Increased capital efficiency
Soviet-style UCG technology
used for Gasifier 1, 2 and 3 at the
Chinchilla Demonstration Facility
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Linc Energy comprises three (3) energy divisions; Oil and Gas, Coal and Clean Energy (UCG/GTL) that are all moving to profitability by the end of 2012
1. Oil and Gas
a. To increase production in the U.S. to 6-7,000 bpd
b. WYO commercial CO2 injection to commence for 2012, which will have a long term production of +10k bpd
c. Drilling of ~1.2 Billion barrels OOIP in Alaska over the Northern Winter to create a significant 1P barrel reserve and enable financing of the pipeline.
2. Coal
a. Monetise Teresa
b. JV for coal package and divest or float
c. Drill out key coal targets in Qld, South Australia and the Powder River Basin.
3. Clean Energy
a. Now with UCG Gasifier 5 developed; goal of committing to first UCG to GTL project site by end of 2012
b. Finalise GTL costing and commence GTL project
c. Convert more commercial opportunities
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