Quarterly Activities Report
Brisbane, Jan 31, 2012 AEST (ABN Newswire) - Linc Energy Ltd (
ASX:LNC) (OTCQX:LNCGY) is pleased to release the attached Quarterly Report for the period ending 31 December 2011. In addition to the activity summary for the period, this Quarterly Report also outlines the priorities for the Company's three divisions for 2012 and activities during January 2012.
Highlights contained in the Quarterly Report include:
- Current oil production capacity in the USA is approximately 3,200 barrels of oil per day (BOPD) (Gross).
- USA oil & gas production revenues from the Gulf Coast and Wyoming operations are expected to fund the operational costs (OPEX) and general and administrative (G&A) costs of all USA oil operations during 2012.
- Linc Energy is on track to achieve the targeted increase in total oil production from the Gulf Coast and Wyoming operations to between 5,900 to 7,000 BOPD (Gross) by the end of 2012 which would provide approximately US$110 million to US$130 million in cash flow per annum (at $100 oil price).
- All significant future capital expenditure in 2012 has been aligned with production revenues, monetisation of non-core assets and commercial initiatives such as a comprehensive cost efficiency program and introduction of strategic investors within each of the three business divisions.
- Linc Energy has secured access to additional capital by way of a A$120 million loan facility ensuring that the Company remains well-funded irrespective of global debt and/or capital market changes throughout 2012 as it pursues its immediate business objectives.
- Linc Energy is continuing to explore a number of options with interested parties in relation to the Teresa coal asset, including full divestment and partial divestment/joint venture opportunities.
- Successful start-up of the Fifth Generation Gasifier (G5) at Chinchilla on 22 October 2011, with exceptionally stable operation being achieved producing good quality synthesis gas since this time.
- Operation of multiple gasifiers (G4 and G5) into the downstream processing facility at Chinchilla was achieved on 17 November 2011 producing Syncrude.
Mr Peter Bond, Chief Executive Officer, said, "I am pleased to see the significant progress which has been made within the Company's three divisions over the past quarter, particularly the production results achieved by our Oil & Gas division in the USA. From this solid foundation, we are very confident in our ability to deliver a significant increase in oil and gas production to around the 6,000 barrels per day with associated gross revenue of over $200 million of per year (@$100 oil) by the end of 2012. We are also well positioned in 2012 to make significant progress on our key developments, including the commercialisation of UCG to GTL, commencement of our Wyoming CO2 EOR project and the development of our oil field at Umiat in Alaska by converting some of the estimated 1 billion barrels of oil in place to a 1P reserve by the end of our next drilling campaign."
"I continue to remain very confident of our ability to achieve successful outcomes in our current UCG to GTL joint venture negotiations and the divestment of our non-core coal assets in 2012. However, as we have always done (including prior to the Galilee Coal Sale in 2010), the Company has also secured access to additional funding early by entering into a A$120 million line-of-credit debt facility."
To view the complete Linc Energy Quarterly Report, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-LNC-239241.pdf
Contact
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:
Justyn Peters
General Manager Investor Relations
Phone: +61-7-3229-0800
E-mail: justyn.peters@lincenergy.com
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