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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.