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Investor Linc Newsletter

December 2011 /20

GOING GLOBAL

Permits for Wyoming UCG Demonstration Facility

Linc Energy submitted the first portion of its research and development (R&D) license application to the Wyoming Department of Environmental Quality-Land Quality Division (WDEQ-LQD) to build and operate a 90 day Underground Coal Gasification (UCG) demonstration facility in one of the richest coal resources in the world, Wyoming’s Powder River Basin (PRB).  The second portion of the license application is slated for submission in the first quarter of 2012.

The R&D license application is based upon more than sixteen months of continuous work and collection of baseline data that includes detailed hydrogeology models, UCG cavity growth models, the drilling of over 50 wells and subsidence control models prepared using Linc Energy’s proprietary UCG technology.

Linc Energy is the majority holder of Wyoming state-owned coal leases in the PRB by a broad margin, controlling approximately 184,210 acres of coal or about 2.2 per cent of the 8.2 million acres within the Wyoming PRB.  According to the Wyoming State Geological Survey, the PRB contains nearly 1.2 trillion tonnes of coal. 

Following the submittal of the second portion of the R&D license application in December 2011, the WDEQ-LQD will perform a completeness and technical review and then open a one month public comment period.  At the conclusion of this process, which is anticipated to take approximately 240 days, the WDEQ will make a decision on the application. 

Once the R&D license is issued, construction of surface facilities and the drilling of the gasifier process wells will commence.  Construction time should be reduced as much of the UCG underground monitoring structures will already be in place.  Linc Energy anticipates igniting the gasifier to complete a 90 day gasification demonstration at the Wyoming UCG Demonstration Site in the third quarter of 2012. 

The facility will allow Linc Energy to prove to US stakeholders the viability of Linc Energy’s UCG technology in the PRB and similar basins in the United States.