ASX Code: LNC OTCQX Code: LNCGY
7 December 2012
LINC ENERGY AND DTEK OIL AND GAS SIGN A UCG AGREEMENT FOR THE UKRAINE
Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to announce it has entered into an agreement to collaborate with DTEK Oil and Gas for the purpose of evaluating underground coal gasification (UCG) potential in the Ukraine on DTEK's local coal resources. DTEK Holdings, the parent company of DTEK Oil and Gas, is the largest privately owned, vertically integrated energy company in Ukraine with interests in coal mining, power generation and electricity distribution companies.
As an entrepreneurial company, DTEK Oil and Gas is seeking to assess the opportunity to utilise UCG to help address Ukraine's growing reliance on imported, expensive and often unreliable natural gas and to fill their capacity gap at DTEK's existing gas-fired power plants.
Linc Energy was selected by DTEK as its preferred strategic partner following a thorough review of the current UCG market and the unique world leading experience offered by Linc Energy as demonstrated through the visit of DTEK management to the Chinchilla UCG to GTL Demonstration Facility on two separate occasions over the past 6 months.
DTEK has agreed to pay Linc Energy for an initial resource assessment, adding further validation of Linc Energy's Clean Energy Division and the intrinsic value within Linc Energy's technical and commercial capability.
If a coal resource suitable for UCG commercialisation is identified, the parties intend to co- operate to bring a UCG gas project to commercial fruition in the Ukraine over the next few years. Linc Energy, on initial review so far, is confident that it will locate a suitable UCG coal resource as part of the study that is about to be undertaken in the Ukraine.
Linc Energy's President of Clean Energy, Mr Adam Bond, said, "As Linc Energy continues to grow its presence in the European energy market, we are pleased to be working with one of the Ukraine's major energy stakeholders in DTEK Oil and Gas to make the assessment of UCG's potential in the Ukraine."
Mr Bond further noted, "The energy market in the Ukraine signifies a number of the key attributes as to why Linc Energy made the strategic commitment to expand its operations into Europe. DTEK is an obvious partner for Linc Energy in this region of Eastern Europe and we are very proud to be working with the company going forward."
Maxim Timchenko, Chief Executive Officer of DTEK, said, "Cooperation with Linc Energy allows for a new way of looking at the issue of efficiently and safely utilizing Ukraine's proven coal reserves. Environmentally friendly production of syngas will enable us to exploit coal reserves that cannot be developed by traditional mining methods. In addition, UCG gives new life to gas- based electricity generation projects. All of this will help to reduce the energy dependence of Ukraine. The Company continues its policy of utilizing domestic coal and alternative energy sources. We expect syngas production will start in 2014."
A copy of DTEK's media release follows:
ASX Announcement continued
ASX Code: LNC OTCQX Code: LNCGY
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
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 over 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 United Kingdom 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).
Belinda Taylor | GM Corporate Communications e: firstname.lastname@example.org
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