- BRW Lists
Published 09 January 2013 10:28, Updated 14 January 2013 07:20
Linc Energy CEO Peter Bond Glenn Hunt
Peter Bond, the CEO of Linc Energy and BRW Rich Lister, made a paper gain of $28.6 million in one day on Tuesday when his company’s share price jumped almost 11 per cent following a market update.
The mining and energy stock added about $71.6 million to its market capitalisation in trading on the day, a rise that benefited Bond handsomely as owner of 40 per cent of the company’s shares.
“I should be able to cover dinner tonight,” Bond comments dryly, discussing the trading in the stock that saw Linc finishing the day’s trading with a market capitalisation of $726.26 million.
Bond has previously acknowledged his frustration in interviews with BRW at the performance of Linc’s share price, which has remained fairly static in recent years despite his bullish view on oil production at the company’s existing sites and the global partnership potential for its underground coal gasification (UCG) technology.
“The market is not responding to what we say at the moment, it’s only responding to what we do … we have to hit these milestones and keep hitting them and eventually the institutional shareholders and overseas investors will have to get on board,” he told BRW.
Linc disclosed on Tuesday it had met its target of 6000 to 7000 barrels of oil a day, reporting a tripling production at its fields in Louisiana and Texas to 6307 barrels a day by the end of December.
In terms of the next milestone, Bond says he expects initial flow testing of Linc’s recently-acquired Umiat site in Alaska will reveal 1000 barrel a day capacity in coming months as part of its first-stage program at that site. He says Umiat has the ability to potentially produce 50000 barrels a day in the next two to three years, based on further stages involving deeper drilling that he expects to roll out over that time-frame.
Bond says he is still in negotiations with overseas investors interested in discussing joint-venture partnership arrangements to use Linc’s UCG technology. Russian billionaire Roman Abramovich visited the company’s Chinchilla site in November to observe the technology first-hand.
He says that within the next month the company will release a report outlining the potential production capacity of the company’s shale oil assets in South Australia. A cornerstone investor is being sought to develop the site.
Bond was worth $295 million in 2012 according to the BRW Rich 200.