The Queensland Government’s ban on underground coal gasification (UCG) is being felt already.

Oil and gas company Linc Energy went into voluntary administration earlier this month, just days before the ban was announced. 

Administrator Grant Sparks from PPB Advisory says that ban the means Linc’s UCG trial site near Chinchilla is “of little value”.

“All I can say about that is we were surprised that announcement was made,” Mr Sparks told the ABC.

“Linc Energy was well known for its UCG and part of the assets it holds includes intellectual property associated with that.

“The intellectual property and know-how the company has built up is still of value.

“We're still in the early stages of our investigation to uncover that position, but at this early stage we have a shortfall of assets to meet the liabilities that exist.

“Directors had been trying to restructure the company and raise more capital, but were unable to do so.”

Mr Sparks said Linc appears to owe more than $120 million to creditors.

“People have made claims today that we haven't fully investigated.”

Dozens of former workers who have been made redundant still owed entitlements, but PPB says it expects they will be paid.

“We've already had a number of parties express interest in the assets of the company, so when that expression of interest period expires we'll be drilling down a bit deeper into what those parties wish to do,” Mr Sparks said.

Linc Energy will also face five charges related to breaching environmental regulations at the Chinchilla trial site.

Environmentalists say the company entered administration to avoid paying any penalties from the legal action.

The next creditors meeting is on May 23.