Administrators of Singapore Based Linc Energy Say Company Should be Liquidated

Singapore listed Linc Energy should be liquidated, administrators of the company said in a report Friday.

In its report to creditors, PPB Advisory said Linc Energy owed more than $298 million. Linc Energy, which has been working on underground coal gasification (UCG) technology, a month ago entered into voluntary administration. The company appointed Stephen Longley, Grant Sparks and Martin Ford of PPB Advisory as administrators, effective 15th April 2016.

The company operated a UCG demonstration facility in Chinchilla, Queensland, between 2007 and 2013. This facility is comprised of five gasifiers and was pivotal to the company's research and development program to commercialise the UCG technology.

According to PPB Advisory report the reasons for Linc’s difficulties are rapid deterioration of global commodity prices and the resulting impact on the company's financial position and in particular to its US subsidiaries, inability to raise further capital following the Queensland government's decision to commence legal proceedings against the company for alleged environmental damage and unwillingness of major shareholders to participate in the proposed restructure and recapitalisation of the company.

Queensland government brought about charges of environmental damage in March this year. Since then company’s shares have been suspended.

A second meeting of creditors, scheduled to be held on May 23, could be adjourned for up to 45 days while PPB Advisory continues its investigation.

Linc Energy has a broad portfolio of oil, gas and coal assets. Its business activities include oil and gas operations in USA and exploration for conventional & unconventional (shale) oil and natural gas in the Arckaringa basin in South Australia. It deploys its proprietary unconventional gas extraction technology, underground coal gasification (UCG), in Asia and Africa.