Linc Energy plans to buy back on-market up to five per cent of the company’s shares, worth about $51 million.

The energy firm on Monday said its current share price presented the opportunity to conduct the buy-back.

Linc’s shares were down 12.5 cents, or 6.13 per cent, at $1.915 at 1408 AEST, against falls in the broader market of about three per cent.

The company’s shares have been on a downward trend since August 1, when they closed at $2.85.

Linc, which had $310 million cash on hand at the end of June, said it was well-positioned to pursue an on-market buy-back, due to its low borrowing levels and strong cash position.

The buy-back could occur anytime in the 12 months from September 26, the company said.

Chief executive Peter Bond said the company was focused on commercialising underground coal gasification projects in Australia and overseas, developing oil and gas assets in the United States and selling its Teresa coal asset in Queensland.

AAP rlm/