Linc to acquire Wildhorse Energy UCG business in Hungary
Australia-based Linc Energy today announced an agreement to acquire all underground coal gasification (UCG) business of its compatriot firm Wildhorse Energy in Hungary in a Aus.$4.04 million (approximately €2.63 million) stock swap.
The purchase includes some 355 square kilometers of Hungarian land currently owned by Wildhorse. In calling Hungary a “key European market” and “an exciting jurisdiction,” Linc executives touted the buyup as ideal for purposes of expansion in Central and Eastern Europe; recently signed by the company were strategic agreements in the Ukraine and Russia.
Managing director/CEO Peter Bond stated that “the combination of high gas prices with a small number of gas suppliers and increasing energy demand makes central Europe a perfect location for UCG to develop its commercial business model.”
According to Bond’s statistics, demand for natural gas in Hungary is current about 11 billion cubic meters annually; approximately 30% of Hungary’s electricity is supplied by natural gas.
A company statement also noted that “Importantly, the Hungarian Government is supportive of UCG and of the plan to create a sustainable and cost-effective gas solution for Hungary’s local industries and businesses.” A bill passed by Parliament in mid-January established a legal framework for UCG project development. At that time, Wildhorse managing director Matt Swinney commended the government’s “progressive stance” on UCG tech.
The acquisition of Wildhorse “is a win/win for both Linc Energy shareholders and the people of Hungary,” said Bond.
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