Troubled oil and gas company Linc Energy could owe creditors more than $120 million, and its assets have been seriously devalued by a ban on underground coal gasification, the administrator says.
Linc Energy went into voluntary administration earlier this month and administrators met creditors and staff in Brisbane on Wednesday. The company had been running an underground coal gasification (UCG) trial at Chinchilla in Queensland’s Western Downs.
Administrator Grant Sparks from PPB Advisory said the state government’s ban on UCG meant the site would be “of little value“, but interest had been expressed in the company’s assets.
The UCG ban was announced just days after Linc was placed into administration.