Chairman's Message
June 2008
Dear Shareholder
By any measure, this has been a memorable year for Linc Energy, its Shareholders, its business partners and its various stakeholders, and the global energy industry in general.
For the Company it has been a year of achievement, of meeting milestones and the setting of benchmarks.
It has also been a year of very significant increases in share capital value, against a backdrop of volatility in the international equities and financial markets.
On behalf of your Board, it is my pleasure to report to you on the achievements of the Company and its remarkable executive team, led by Managing Director and CEO, Peter Bond.
Linc Energy is on the verge of becoming a producer of new clean fuel, with its world-first, Underground Coal Gasification (UCG) and Gas to Liquids (GTL) demonstration plant at Chinchilla in south-east Queensland showing the international community it can convert vast ‘stranded’ coal deposits into ultra clean liquid fuels.
At a time when fuel prices are escalating and environmental sustainability is of growing world concern, Linc Energy is demonstrating a smart solution to the fuel and energy crisis that is also a sustainable solution, environmentally.
There have been many highlights in the year under review. Linc Energy acquired a controlling interest in an Uzbekistan company, Yerostigaz - the world leaders in Underground Coal Gasification (UCG). Linc Energy began trading on the United States’ OTCQX exchange and of great significance, announced a merger with South Australian oil and gas exploration company, SAPEX, which when completed will unlock significant coal deposits to add to the Company’s existing resources at Chinchilla and Emerald in Queensland.
These milestones were reflected in shareholder value being increased significantly, with Linc Energy’s share price at one stage approaching five Australian dollars per share, and being independently ranked as one of the top three best performing stocks on the Australian Securities Exchange.
The achievements of Linc Energy over the last year are substantial.
In just one year, we have come a very long way.
A World-First in the Making
The final stage of commissioning Linc Energy’s UCG to GTL demonstration plant in Chinchilla is a momentous occasion for the Company.This is a world-first that will demonstrate Linc Energy’s ability to convert coal into clean liquid fuels and provide a new solution to the energy and fuel crisis.
The work involved in getting to this point can not be underestimated.
The plant’s completion represents the Company’s first steps towards the construction of a commercial 20,000 barrels per day UCG to GTL ultra-clean diesel facility, putting Linc Energy well and truly on its path to becoming a dominant clean energy producer.
Top Three Performing Stock
Linc Energy’s share price has not only outperformed the S&P/ASX 200 Accumulation Index, but it has been ranked one of the top three best performing stocks on the ASX for the 2007-2008 financial year.In this period, Linc Energy’s share price rose by nearly 600% closing on 30 June 2008 at $3.86.
It is rewarding to see Linc Energy’s achievements of the past year being reflected in a significant increase in shareholder value, and Linc Energy’s many Shareholders being rewarded for their continuing support.
Board Changes
I would like to thank Linc Energy’s former Company Secretary, Karl Schlobohm for his outstanding contribution since the Company’s ASX listing in 2006 and formally welcome our new General Counsel and Company Secretary, Craig Ricato.Craig Ricato has enjoyed a distinguished legal career and was formerly a partner in a leading Brisbane-based law firm with specific expertise in the area of corporate, construction and resources law. His legal background and many years experience will be a valuable asset to the Linc Energy team.
A Bright Outlook
The last year has been significant for Linc Energy, and the future looks just as bright.With the UCG to GTL demonstration plant in its final stage, our next key tasks include the completion of a bankable feasibility study incorporating the operation of the Chinchilla demonstration plant, the Environmental Impact Study and the completion of the coal exploration program adjacent to Chinchilla. Linc Energy can then progress to Stage Two of its business plan which will involve the financing and construction of a 20,000 barrels per day commercial UCG to GTL facility.
The Company is on track with its plans and vision to become a dominant player in the supply of more environmentally friendly power, diesel and jet fuel.
Many thanks to my fellow Directors, management and staff. The Linc Energy team, led by the unflagging determination of its leader, Peter Bond, has worked tirelessly to make the last year such a success. I commend Peter and his ability to structure a quality and experienced team to deliver on our Company objectives. I am confident this same commitment will help steer Linc Energy through another successful year ahead.
Yours sincerely
Brian Johnson
Chairman
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