BRISBANE-based Linc Energy (ASX: LNC), one of Australia’s leading innovators in underground coal gasification (UCG) technology, has announced its intention to delist from the ASX and relist immediately on the Singapore Exchange to improve access to global capital markets.
In a statement to the ASX, the company said it believes the transition will improve access to capital markets, reposition the business to deliver its long-term growth strategy and enable it to take advantage of increasing gas demands in Asian markets.
Shares were up 1.78% following the announcement.
“Following the transition, we believe Linc Energy will be one of the largest independent upstream oil and gas exploration and production companies listed on the SGX and one of South-East Asia’s largest in terms of production and proved and provable reserves,” says Linc Energy CEO and managing director Peter Bond.
“This move is expected to improve our access to capital markets and our ability to market out UCG technology internationally. Over the past nine years we have invested approximately A$200 million to develop our UCG and GTL (gas-to-liquid) technology (and) today, we believe we remain the only company in the world to have successfully converted UCG syngas through GTL technology to produce diesel and jet fuel.
“As Asian economies grow, demand for energy is expected to increase faster than anywhere else in the world and gas is detined to fulfill an increasing proportion of the region’s energy needs. Listing on the SGX will improve our access to international capital markets and enable us to exploit this opportunity.”
Following the proposed delisting from the ASX and relisting on the SGX, the company’s headquarters will remain in Brisbane.
Linc Energy founder and CEO Peter Bond will explain this decisive move in a special breakfast presentation at the Brisbane Polo Club on December 4, hosted by Brisbane Business News. More information can be found here.