Line signs agreement with Exxaro Resources for UCG development in Sub-Saharan Africa

摘要

Line Energy has signed an agreement with Exxaro Resources to jointly pursue underground coal gasification (UCG) development in Sub-Saharan Africa. Exxaro is to pay Line Energy a US$30 million fee in addition to an agreed-upon upfront license fee for Line Energy's UCG technology. A UCG operation would result in the payment to Line Energy of ongoing royalties for syngas produced from Line's UCG technologies used in the region. Line would hold a minimum equity interest of 15 percent in the first project to be developed and would have the option to participate up to a 49 percent equity position in all UCG projects which Exxaro develops.