The rationale behind the switch according to LNC’s CEO Peter Bond is to tap into Asia growing demand for energies particularly oil and gas.
The move is believed to give the company better access to capital and be closer to LNC’s target market and end users as the company looks to finally commercialise its underground coal gas technology.
The company has struggled to get this project up and running as it looks to new technologies to produce synthetic fuels. The fuels it is concentrating on particularly is producing synthetic gas from coal and synthetic diesel and jet fuel from gas.
The reasoning for choosing Singapore as its destination of choice is the country’s want to be one of the top three oil hubs in the world and is currently heavily investing in energy handling infrastructure. Having a base in a market with these connections should optimism LNC’s future development and synergies.
However this decision by LNC has put Australian investors in a slight bind - what to do with the direct shares they hold? Do they hold onto their current shares and have them transferred to the SGX or do they sell out of the company and miss out on what could be an excellent opportunity for this emerging company.
Linc has the potential to be one of the most interesting new age energy plays over the next decade and we believe investors should still access to this emerging company through CFD trading.