Linc Energy Limited (ASX:LNC) Awards Pre-Feasibility Contract for Potential Underground Coal Gasification (UCG) Power Project in South Australia

Brisbane, Sep 23, 2010 AEST (ABN Newswire) - Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to announce it has awarded a pre-feasibility study contract on a proposed Underground Coal Gasification (UCG) for power generation project in South Australia to UHDE Shedden and Sinclair Knight Merz (SKM).

The pre-feasibility study is anticipated to be completed by the end of the year and will primarily focus on a commercial UCG power project with numerous UCG gasifiers to feed synthesis gas (syngas) to a gas-fired power plant.

For the study, UHDE Shedden will be responsible for gathering data for UCG synthesis gas processing and the infrastructure required for a UCG power project scope. SKM will be responsible for gathering data on the potential for power generation and transmission, as well as the environmental components of a potential project in South Australia.

Associated infrastructure and gas handling processes required to support commercial UCG operations will also be completed.

"South Australia needs to produce more power for its needs. Our plan is to dispatch power generated from UCG syngas into the national electricity market to service power markets in South Australia, Victoria, and New South Wales. This study takes us to the next step," said Chief Executive Officer Peter Bond.

"South Australia is our primary focus for the commercialisation of UCG in Australia. The South Australian Government has been very supportive of the potential that UCG offers, and has been very willing to engage with us," said Bond.

"We will continue to explore all resource opportunities in South Australia, including traditional oil and gas, and UCG. We have an aggressive oil exploration program planned for our tenements in the Arckaringa Basin, set to start in 2011," he said.

Earlier this year Linc Energy announced an 'oil show' at the Maglia-1 site on its Arckaringa Basin Petroleum Exploration Licence, representing the most significant oil discovery in the basin to date. Drilling continues in the Walloway Basin for a precise location suitable for UCG. The development and drilling of several highly prospective oil formations will become a near term goal for Linc Energy in the Arckaringa Basin and a significant focus for Linc Energy's South Australian team.

Linc Energy will officially open its South Australian project office in Adelaide tomorrow, marked by the attendance of South Australian Mineral Resources Development Minister, Paul Holloway.

Bond said "The opening of this new South Australian office is just a reflection of the overall growth of the company in South Australia and the opportunities that are ripe for future development."

Contact

Information for Media: Greg Meyer Media Manager Phone: +61-7-3229-0800 Email: greg.meyer@lincenergy.com.au ASX Contact: Craig Ricato Company Secretary Phone: +61-7-3229-0800 Email: craig.ricato@lincenergy.com.au Information for Investors: Anton Rohner Chief Financial Officer Phone: +61-7-3229-0800 Email: anton.rohner@lincenergy.com.au