LINC ENERGY LTD // 2009 ANNUAL REPORT

02 MANAGING
DIRECTOR’S
REPORT
CONTINUED
I am aiming to rectify over the coming twelve months, to
ensure increased shareholder awareness of Linc Energy’s
activities and accomplishments. For those who have visited
our website you might have noticed that we have added a
section where information sheets are now available to be
downloaded that provide information and explanations on
all aspects of the business.
Continuing on from last year we have conducted numerous
roadshows around the world in order to promote the
business and to sell the Linc Energy story. Linc Energy
has been recognised as the world leader in UCG to GTL
and as such has been invited as key speaker to numerous
conferences in Asia, Europe and the United States. All of
this helps us tell the world why Linc Energy and the UCG
story is so compelling.
I also note that the number of Linc Energy shareholders
has grown from 6,160 to 11,641 at 30 June 2009 (another
amazing year of growth).
Linc Carbon Solutions
We have applied for two patents (pat. Pending) with
Linc Carbon Solutions and we are expanding our focus
into a number of other joint ventures to ensure a successful
outcome for the capture and processing of CO2, including
the opportunity to work with some of the world’s leaders
in CO2 sequestration.
It is my aim to turn Linc Carbon Solutions into a worldclass
company capable of handling Linc Energy’s CO2
requirements. Whether that be selling the CO2 in North
America, geo sequestration or bioreactor sequestration,
what matters is that Linc Energy has the answer to its CO2
question, and in due course I believe this will in fact be a
very strong business for the future.
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Outlook
Linc Energy has always had an exciting future with growth
potential around the world. We are firmly committed to the
commercialisation of UCG to GTL technologies in Australia
and abroad, and work continues on conceptual design
development and commercial planning for our 20,000 bpd
UCG to GTL facility.
No one could have predicted the volatility in the share
and commodities market over the past twelve months.
Yet despite all the turmoil and uncertainty it has been an
extraordinarily busy and successful year for Linc Energy.
We have delivered on one of the largest exploration and
drilling programs in the Company’s history. Through this
program we have enhanced the value of our coal assets
significantly and are in a competitive process to realise
some of the value of those coal assets as we start to
sell some of them via the UBS sale process. We have
successfully raised over $65.1 million of new capital that
secures the future of the Company to grow and expand.
We purchased the Wyoming coal acreage and have
recently commenced site evaluation of the coal there.
And in a market where companies are reducing their staff
levels we continue to employ more people to strengthen our
team and capability.
We successfully completed the acquisition of SAPEX and
we are seeking more coal in the United States. These
acquisitions set up Linc Energy for growth in both Australia
and in North America. We also signed contracts with our
partners in Vietnam to commence the first UCG project
in Vietnam.
Most importantly, we have delivered a significant world-first
by successfully producing liquids from the UCG to GTL
process and Linc Energy continues to enhance its GTL
program with great success, with a focus upon jet fuel
production over the coming months. The value of this GTL
success should not be underestimated as we have proven
that our vision to monetise stranded coal and turn that coal
into syngas via UCG and then convert that gas into valuable
diesel was right and we as a company can drive forward
to commercialisation. We have now turned to the practical
commercialisation of that vision by appointing Aker
Solutions to undertake the concept design for the
20,000 bpd plant.
These are all significant achievements in any single year, let
alone a year with the uncertainty of the financial melt-down
as we have all just lived through. During these difficult times
we maintained focus on delivering on our commitments
even if the pace of delivery had slowed over these past
few months due to outside influences. Linc Energy has
stayed focused and improved the Company considerably,
particularly consolidating a lot of the good work from last
year into a stable company, creating a platform for Linc
Energy to springboard into the future.
Although I would love to have completed everything faster
and been more aggressive, the world had other ideas upon
timing, and to that extent I am very proud of the way we
at Linc Energy have handled the past twelve months,
and most importantly, that we are very well positioned
to take advantage of the next twelve months.
We are taking some very exciting steps here at Linc
Energy, and each step takes us that much closer to our
first commercial operation. I look forward to that progress
blossoming in front of you in the coming year. It is going
to be a year where Linc Energy truly defines itself through
its accomplishments.
Yours sincerely,
Peter Bond
CEO and Managing Director
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