Linc Energy Limtied (ASX:LNC) Coil Tubing Unit Arrives At Chinchilla Demonstration Facility

Brisbane, July 27, 2010 AEST (ABN Newswire) - Linc Energy Ltd (ASX:LNC) (PINK:LNCGY) has introduced the use of its recently acquired coil tubing unit to its Underground Coal Gasification (UCG) operations at its Chinchilla Demonstration Facility.

As announced in its 'Company Update' to the market on 18 June 2010, Linc Energy executed an agreement to acquire a coil tubing unit for its UCG operations. The coil tubing unit recently arrived at the Chinchilla Demonstration Facility.

Linc Energy is the first company in Australia to apply coil tubing technology to UCG operations.

"Linc Energy is committed to the commercialisation of UCG and to taking steps to ensure the best possible commercial UCG operating platform. The introduction of the coil tubing unit at the Chinchilla Demonstration Facility ensures Linc Energy's future commercial UCG operations will be established with minimal capital costs, and run with lower operating costs," said Linc Energy's Chief Executive Officer Peter Bond.

A coil tubing unit is a specialised drilling and well intervention rig. Ideal for the UCG environment, it increases operating efficiency by reducing the need to continuously connect drill pipe as equipment is moved in and out of the well. A continuous pipe, as opposed to many individual pipes used on conventional drilling rigs, the coil tubing unit also creates a safer operating environment.

"Put simply, the coil tubing unit delivers faster results. We know 'time is money'. Using the world's latest drilling completion techniques, the coil tubing unit can bring each UCG well required online more quickly, safely and professionally, reducing the overall amount of time needed to reach full commercialisation," he said.

"This equipment will also reduce our reliance on traditional contractors; meaning when we need UCG gasifiers brought into operation or maintained Linc Energy can do this with its own equipment. It is a testament to Linc Energy's commitment to the rapid pursuit of commercial UCG operations."

Sourced from Houston, Texas, the trailer mounted unit was commissioned by appointed operator Titeline Energy Pty Ltd. Field trials were successfully completed at the Chinchilla Demonstration Facility.

"Linc Energy is continually looking for ways to drive cost efficiencies and lower capital expenditure for its commercialisation phase. As the coil tubing unit is utilised at the Chinchilla Demonstration Facility, we will work more closely with Titeline Energy to further enhance the equipment for UCG." said Bond.

There is also the potential to use this equipment for traditional exploratory drilling by adding it to Linc Energy's existing rig. This will further reduce reliance on external contractors and again save time and money.

Over the years, Linc Energy has cost effectively developed its UCG technology and intellectual property.

"It's our plan to have a coil tubing unit for every major UCG operation, regardless of where it is in the world. It just makes sense and ensures we will have complete control over any of our UCG wells. The introduction of this coil tubing unit is just another example of how much we have developed our UCG technology and how sophisticated Linc Energy is," said Bond.

"Linc Energy's Chinchilla Demonstration Facility is the ideal pre-commercial platform. Not only are we developing better technologies to drive the commercialisation of UCG for cleaner energy, we are preparing for, and gaining valuable knowledge about, the UCG operating environment," he said.

Contact

Peter Bond Chief Executive Officer Linc Energy Limited Phone: +61-7-3229-0800 Information for Media: Greg Meyer Media Manager Phone: +61-7-3229-0800 E-mail: greg.meyer@lincenergy.com.au ASX Contact: Craig Ricato Company Secretary Phone: +61-7-3229-0800 E-mail: craig.ricato@lincenergy.com.au