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CLEAN COAL TECHNOLOGY033rely on transport for their success. The Australianmining industry is a good example, and without oil themining boom would grind to a halt. Australia's oilconsumption is set to rise over the next 20 years, whiledomestic oil production, in line with global trends, is insignificant decline3.Similarly in the United States, after registering anincrease in domestic crude oil production in 2010approximating a rise of 150,000 barrels of oil per day,we now see projected crude oil production actuallydrop by 110,000 barrels per day in 2011, and in2012 oil production in the United States will drop by afurther 130,000 barrels per day. Alaska and the Gulf ofMexico in particular are United States locationsearmarked to experience declines in crude oilproduction from 20114. Nations need to get smarteraround fuelling their futures. And more particularly,around how they can do this amid decliningconventional oil reserves whilst facing impendingcarbon penalties. There are a number of significantBelow:Linc Energy hasan active UCG siteselection programmecurrently underway in the Powder RiverBasin, WyomingInset:Linc Energy isacquiring oil fields inWyoming for EnhancedOil RecoveryRight:Peter Bond, Chief Executive Officerand Managing Director,Linc Energy Ltd?

opportunities that take conventional, depleted reservesof oil and create an opportunity for increased oil flow ata very cost-efficient price point.Enhanced oil recovery, or EOR, is a process growing inpopularity and technical expertise. In the UnitedStates alone there are about 100 commercial CO2-EOR projects in operation recovering approximately240,000 barrels of oil per day5. EOR works byinjecting carbon dioxide into near-depleted oilreservoirs that have been drilled conventionally fortraditional primary and secondary oil production. Thisprocess works to extract much of the remaining tertiaryoil, and in some cases, just as much oil can beextracted from the reservoir as was initially retrievedduring the oil fields' primary production days. EORalso works to sequester unwanted carbon dioxide fromother industrial processes, so it is an obvious win-win.The US Department of Energy has indicated that a totalof 1,673 oil fields or reservoirs have been identified forEOR6 and can collectively account for 400 billionbarrels of remaining oil of which about 85 billionbarrels are technically suitable for EOR methods ofrecovery7. This all paints an interesting picture fornations looking for innovative ways to secure more oilfor their economies. At the end of 2010, and aftermuch research and assessment, Linc Energyannounced that it intended to acquire a number of neardepleted oil wells in the United States where we alreadyhave a considerable amount of coal leases. It is ourvision to create value from stranded coal viaUnderground Coal Gasification (UCG) and associatedCO2, whilst harvesting significant volumes of oil fromdepleted oil fields by injecting this UCG created CO2into known oil and gas reserves to produce oil tocontinue to sustain our economies, as well as providecleaner energy solutions in today's now carbonconscious climate. Over 99 per cent of the CO2injected will remain underground in the old oil fields,making carbon dioxide flooding a very strong contenderas it is the most reliable storage zone for CO2, whichactually yields an energy benefit of more oil and gas.In March this year Linc Energy purchased its first threeoil fields in Wyoming's Powder River Basin. These oilfields currently produce 190 barrels per day throughtraditional means and we anticipate that there is thepotential to increase this daily production from 190barrels per day to 10,000 or even 20,000 barrels perday using commercial carbon dioxide flooding andEOR processes. We are aggressively pursuing theacquisition of other near depleted oil fields in otherareas of the Lower 48 to sweep stranded oil to thesurface via carbon dioxide flooding. One obviousenvironmental upside to the application of EOR is thatit also doubles as a form of carbon sequestration whereCO2emissions are negligible when stored in the thendepleted reservoir when production is complete andnot vented8. In fact, the US Department of Energy hasstated that EOR could be the enabling catalyst for034CLEAN COAL TECHNOLOGYlarge-scale sequestration efforts, indicating thatcurrent EOR projects are now sequestering a total of138 billion tonnes9.As an integrated energy company, Linc Energy is alsofocused on UCG which uses stranded coal where it liesin the ground to produce a synthesis gas feedstock tosupply commercial energy solutions such as cleanerelectricity generation, cleaner fuel production via Gasto Liquids (GTL) processes and the manufacture ofchemicals. Linc Energy is without doubt the globalleader in UCG and owns the world's only commercialfacility, which for the past 50 years has been producingsynthesis gas for electricity in Uzbekistan to powerlocal households. We have also constructed andcommissioned the world's only UCG to GTLdemonstration facility located in Queensland,Australia. It is at this facility that we have made theworld's only cleaner and better performing syntheticdiesel fuel from UCG and GTL processes. In fact, wedrove across Australia earlier this year, a distancefurther than Los Angeles to New York, on our owndiesel to prove to governments and communities alikethat this approach to fuel production not only producesan ultra-clean fuel, but a fuel that performs better thanconventional fuels in terms of both performance andfuel economy.As an energy enabler and developer, Linc Energy'sskills are in high demand right around the world asnations come to analyse their energy shortfalls andlook for energy solutions. It is our unique ability tosearch and execute energy opportunities that gives ussuch a prominent profile as well as the added benefitsfor economies and environments that our uniqueapproach to stranded resources brings, whether it bestranded coal or oil.Discover the energy company that is fueling our nABOUT THE AUTHORPeter Bond is Chief Executive Officer of Linc EnergyLtd. He began his career in mining thirty years ago,after training as a metallurgist at BHP. At the age of23, his entrepreneurial streak shone and hepersonally raked and hand cleaned over 1,000 tonnes of coal, which he sold to a brick company for AU$17,000. After years in the coal industry, MrBond went on to own his own coal company. Sincethen he has been involved in transformingunderperforming companies into valuable assets, inboth Australia and overseas. From late 2004, and injust three years, Mr Bond has transformed LincEnergy from a small start-up to a successful IPO onthe Australian Securities Exchange (ASX) - and ontobecoming an AU$2 billion ASX200 company. MrBond is also a member of the BRW Australian RichList and is known for his philanthropic efforts.Above: Linc Energy hasproven it can makesynthetic diesel fuel fromits Underground CoalGasification and Gas toLiquids processes to fueleconomies