Well who’d’a thought!
‘Linc Energy Ltd (ASX: LNC) (OTCQX: LNCGY) is pleased to announce the completion of an initial drilling program near the town of Orroroo in South Australia.’
‘Five exploration wells intersected coal at depths of between 200 and 293 metres with coal seam thickness of up to 23 metres.’
‘Subject to necessary approvals, Linc Energy’s intention is to fast track the commissioning of a modest sized UCG commercial facility at Orroroo to confirm the suitability of the resource for low cost synthesis gas production that can be used for power generation and GTL production of ultra-clean synthetic fuels. This commercial UCG generator will become the cornerstone of Linc Energy’s commercial program at the Orroroo site in the months ahead.’
‘The Orroroo deposit is of a scale which the Company believes can support 500 MW of high efficiency power generation which will be a significant addition to South Australia’s electricity system which currently requires additional generation. In addition to power generation, the Orroroo deposit is of a scale that can also support a plant to produce 20,000 barrels per day of ultra-clean synthetic fuel. The production life of the combined facilities based on the scale of the deposit is expected to be approximately 75 years.’
In making this announcement, Mr Peter Bond, Chief Executive Officer of Linc Energy, commented that “these initial drilling results are fantastic and confirm my belief that the coal in this area has all the attributes we are looking for in our first commercial UCG site. By that I mean great coal, at ideal depth, excellent coal seam thickness, good geology and flat terrain. This deposit can support significant production of low cost synthesis gas for power generation and synthetic fuels GTL production for a generation or more”.
Mr Bond went on to say that “with Orroroo’s close proximity to Adelaide and with good access to port and power transmission infrastructure, the location is just about perfect for what we are planning to achieve. We value the strong support we have received from the local community and the South Australian Government and with their continued support, we intend to push forward aggressively to develop the fantastic potential that the Orroroo location has to offer.”
Download the ASX Announcement and media release: Update_on_South_Australian_UCG_Program_-_2006-11-09 ~ 5Mb pdf