Powder River Basin in the state of Wyoming. Here wepurchased three oil fields currently producing about190 barrels of oil per day. The key upside to thispurchase is the application of EOR for even higher oilproduction rates.You may ask what does oil production in the UnitedStates and the application of EOR techniques onthese fields have to do with our expertise in UCG?While UCG unlocks the energy stranded in deep coalfor cleaner power and fuel, it also produces highvalue carbon dioxide for the EOR process. In thiscase carbon dioxide works to sweep stranded,remaining oil from near depleted oil wells. With ouraccelerated presence in the United States andleading capabilities in UCG, it makes perfect sensefor us to use this valuable product from UCG for EORand greater oil production.From a commercial perspective, using carbondioxide produced from the UCG process ensures wemaximise opportunities from all value streams.Nothing is wasted. Just as UCG unlocks the energytrapped in deep coal, too deep to mine, carbondioxide can be injected into depleting oil reservoirsto harvest the remaining oil, and as mentioned, drawan additional 10 to 20 per cent of the originalamount of oil already taken from the well.From an environmental standpoint, EOR is a form ofcarbon capture and storage. By their very nature, oil fields trap fluid, like oil, in the subsurface. The oilmigrates from the source to a place where it can nolonger move. This is known as a geologic trap. It isthis same 'trapping' tendency that makes old oilwells the perfect place to inject carbon dioxide -quite simply, when it is put there, it stays there. As adiversified energy company, we are certainly doingour part to be as productive and environmentallyconscious as possible. Any carbon dioxide that wecan sequester to generate more energy to help supplytraditional global energy needs is a positive step.Linc Energy has made its name as the world'sleading UCG operator. We have been operating UCGgasifiers at our facility in Queensland, Australia since1999. Our fifth UCG gasifier is currently underconstruction to operate in parallel with another thathas been operating for the past 18 months. A few years ago we constructed the Gas to Liquids(GTL) Fischer-Tropsch process facility to take UCGsynthesis gas and transform it into synthetic crudefor refinement into very valuable diesel and jet fuel.To further reinforce our UCG to GTL success I personally drove across Australia, from our facilitynear Chinchilla in Queensland all the way to Perth inWestern Australia - a distance of over 6,000kilometres - to showcase the environmental andperformance credentials of this synthetic diesel. This world-first achievement grabbed the attention oflocal, state and federal politicians in Australia, not tomention global print, broadcast and electronic mediaoutlets and the wider public. It not only gave us greatexposure as a company extending its thinking andprocesses for new energy solutions, it supported thewider awareness of the benefits of combined UCGand GTL technologies and the opportunities theypresent. We also own the world's only commercialUCG operation, Yerostigaz, located in Uzbekistan,which has now produced commercial UCG synthesisgas for power generation for 50 years.Linc Energy can take stranded coal and producepower with 25 per cent less greenhouse gasemissionsiand diesel fuel with near-zero sulphur and aromatics and less carbon monoxide, nitrogenoxide and particulatesii. With over 70 countrieshosting coal reserves, UCG has the potential toincrease global coal reserves by 600 billion tonnesiiifor energy production. By establishing oil production operations near ourUCG projects and adding EOR to the company's122G20 MEMBER COUNTRIESLeft: Linc Energy's firstoil and gas acquisition inNorth America, nearCasper in WyomingBelow:Linc Energy isleading UCG technologyaround the world to takestranded coal for cleanerpower, cleaner fuel andenhanced oil recovery
G20 MEMBER COUNTRIES123approach for greater oil recovery we are putting thepieces of the energy puzzle together to create a set ofvaluable products whilst taking measures to producecarbon neutral energy solutions.For further information on the company's activitiesvisit: www.lincenergy.com or invest using the codesASX:LNC or OTCQX: LNCGY. nABOUT THE AUTHORPeter Bond is Chief Executive Officer of LincEnergy Ltd. He began his career in mining thirtyyears ago, after training as a metallurgist at BHP.At the age of 23, his entrepreneurial streak shoneand he personally raked and hand cleaned over1,000 tonnes of coal, which he sold to a brickcompany for AU$17,000. After years in the coalindustry, Mr Bond went on to own his own coalcompany. Since then he has been involved intransforming underperforming companies intovaluable assets, in both Australia and overseas.From late 2004, and in just three years, Mr Bondhas transformed Linc Energy from a small start-up,to a successful IPO on the Australian SecuritiesExchange (ASX) - and onto becoming an AU$2 billion ASX200 company. Mr Bond is also amember of the BRW Australian Rich List and isknown for his philanthropic efforts.i When compared with traditional coal-fired powergeneration.ii When compared with conventional diesel fuels.iii Underground Coal Gasification Chapter, 2007, Survey of Energy Resources, World Energy Council.