OREANDA-NEWS. January 20, 2012. Linc Energy says it is in talks regarding new gas opportunities in China.

The Brisbane-based business, which is focused on underground coal gasification (UGC) and gas-to-liquids (GTC) technologies, also says it continues to pursue a sale of its coal assets in Queensland.

The company's shares gained nearly 18 per cent in value on Friday, prompting a price query from the Australian Securities Exchange (ASX).

In a response on Monday, Linc said recent media reports that the company had found a buyer for its Teresa coal settlement in Queensland may have been the cause for the share price rise.

But, Linc said, it had not yet entered into any binding agreements on the sale.

It also revealed it is talking with a potential cornerstone investor about teaming up to pursue a significant UCG and GTC opportunity in mainland China.

"Even though those discussions are very well progressed, no binding agreement has yet been reached," Linc said in a statement.