Adelaide-based Sapex Limited and Brisbane-based Linc Energy have signed a Memorandum of Understanding (MoU) under which Linc will identify suitable locations within Sapex’s South Australian licence areas to establish Underground Coal Gasification (UCG) fields for the co-production of power and Coal-to-Liquids (CTL) Diesel.
The companies intend to enter into a formal Joint Venture Agreement to commercialize such suitable resources.
Sapex—an oil and gas exploration company based in South Australia—holds seven Petroleum Exploration Leases (PELs) and two mining Exploration Leases (EL 3325 and EL 3326) that together cover almost the entire prospective area of the Arckaringa Basin in Central South Australia.
The company is exploring for oil, gas and coal seam gas in the basin. It also holds PEL 120 near Adelaide which has significant coal deposits that may be suitable for Underground Coal Gasification (UCG) and Coal Seam Gas.
Linc Energy is currently completing its Chinchilla (Queensland) demonstration facility in the third quarter of 2007 where Linc will use its UCG gas in a demonstration of the conversion of UCG syngas into synthetic diesel. (Earlier post.)
In June, Linc Energy signed a memorandum of understanding (MoU) with Shiv-Vani Oil & Gas Exploration Services Ltd. to establish joint ventures for the development of underground coal gasification (UCG) and coal-to-liquids (CTL) projects in India. Shiv-Vani is the single largest oil and gas upstream services provider in India. (Earlier post.)