Linc Energy Declares 10c/share Dividend

Linc Energy declares 10c/share dividend

Linc Energy CEO Peter Bond today announced a fully franked dividend of $0.10 cents per share effective on 8 October 2010.

Mr Bond said the Company's ability to pay the dividend follows the sale of its 100% interest in non-core Galilee coal tenement earlier this month to Indian company Adani Mining Pty Ltd, a subsidiary of Adani Enterprises Ltd.

The sale involved a cash payment to Linc Energy of $A500 million and a $2 per tonne royalty (indexed for C.P.I) for the first twenty years of coal production, creating a total estimated revenue stream of approximately $A3 billion, in what the Linc CEO referred to as one of the best managed sales transactions in recent memory.

"I believe this to be a fair and reasonable payment and one which recognises both the loyalty of the Company's shareholders and the confidence of the Board in the Linc Energy's future business plan," the CEO said.

The Linc CEO is putting the finishing touches on the company's upcoming overseas road show with a focus on Linc's coal opportunities and its range of exciting value-added opportunities as well as a new cornerstone business for UCG, which will be revealed on the road show.

"The key focus of the company will still centre on the pursuit of our commercial goals of underground coal gasification (UCG) to gas to liquids (GTL) and UCG to Power, in a focused manner from a unique and proven technical base, with projects already underway within Australia and in other parts of the world," Mr Bond said.

"The strong interest in the recent Galilee tenement sale and in the other coal tenements held by the company are also indicators of the depth, quality and potential of Linc Energy.

Mr Bond said he saw this as a springboard from which the Company could now aggressively pursue all of its commercial aspirations within Australia and overseas.

"It is the Board's philosophy to continue to share significant financial milestones with our shareholders as appropriate going forward," he said.

"Considering the company's technological ability, unique intellectual property platform, significant and diverse asset portfolio, and the opportunities that are now being presented to us globally, we look forward to many more such milestones being achieved," Mr Bond said.

Information for Media:
Greg Meyer
Media Manager
Phone: 0457 761 213
E-mail: [email protected]

SOURCE: Linc Energy