Linc to tap new coal find
November 6, 2009
Linc Energy (LNC) shares jumped about 13% in morning trade Friday after the company announced positive results from exploration drilling near the town of Orroroo in South Australia. The company said the results of their study, as indicated by a third party company, showed a significant coal mineralisation target in accordance with the JORC Code of between 1 and 1.3 billion metric tonnes.
Linc Energy said the find was at an ideal depth for Underground Coal Gasificiation ("UCG)" and the company would move quickly to develop a ‘modest’ UCG plant.
Underground coal gasification is an industrial process, which enables the coal to be converted into product gas and pumped to the surface through wells.
CEO Peter Bond said it was a fantastic find for the company.
”This deposit can support significant production of low cost synthesis gas for power generation and synthetic fuels GTL production for a generation or more,” Mr Bond said.
“With Orroroo’s close proximity to Adelaide and with good access to port and power transmission infrastructure, the location is just about perfect for what we are planning to achieve.”
At 1114 AEDT, Linc Energy shares were trading up 18c to $1.585.
Linc Energy said the find was at an ideal depth for Underground Coal Gasificiation ("UCG)" and the company would move quickly to develop a ‘modest’ UCG plant.
Underground coal gasification is an industrial process, which enables the coal to be converted into product gas and pumped to the surface through wells.
CEO Peter Bond said it was a fantastic find for the company.
”This deposit can support significant production of low cost synthesis gas for power generation and synthetic fuels GTL production for a generation or more,” Mr Bond said.
“With Orroroo’s close proximity to Adelaide and with good access to port and power transmission infrastructure, the location is just about perfect for what we are planning to achieve.”
At 1114 AEDT, Linc Energy shares were trading up 18c to $1.585.
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