MEDIA RELEASE
July 2006
Media Release
Linc Announces Major Resource Land Purchase
Commitment to Bridge the Oil Gap for Australia
Brisbane based Linc Energy, Limited (Linc, ASX:LNC) today announced the company is proceeding with a major land purchase in Queensland to allow work to continue on its alternative energy products.
Linc made its debut on the Australian Stock Exchange yesterday, after raising A$22 million through the issue of 88 million shares. BBY Limited, strategic partner of US investment bank Jefferies & Company, was the lead broker to the offer.
The company today announced that it commenced the outright acquisition of the parcel of land on which its Underground Coal Gasification (UCG) process has been successfully demonstrated for the past 6 years. The site, known as Cowpowie, near Chinchilla, Queensland, has been under lease to Linc.
The agreed purchase price of $1,750,000 will be funded from the proceeds of Linc's capital raising. The purchase of the land will create an asset for Linc shareholders as was detailed in the prospectus for the IPO. Through its agreement with Ergo Exergy, Linc Energy, will recommence and expand the UCG process on the "Cowpowie" property.
"Ownership of this tremendous resource will eliminate any concern over future negotiation for the access rights" Linc CEO and Managing Director, Mr. Peter Bond said. "We are committed to aggressively executing on our business plan and delivering upon the promises we made to our investors."
Brian Johnson, Chairman of Linc Energy, stated: "Linc has a robust business plan and the speed with which we have begun to show progress against it is impressive."
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