LNC - Linc Energy

notting · 25 January 2013

Brisbane-based Linc Energy released two reports on Wednesday stating that drilling and seismic exploration indicates the Arckaringa Basin surrounding Coober Pedy could contain anywhere between 3.5 and 233 billion barrels of oil.

3.5 to 233 :silly:

tinhat · 25 January 2013

Wow - what a day and still a few hours to go before the close of the week. I put a buy order in this morning before opening for $2.40 and it would have been executed except that I only managed to get back and cancel it just a few minutes ago.

skc · 25 January 2013

skc said:
Nice trade.

I took the second elevator down... short at $2.64. Bought back half at $2.54 and now just trailing the stop at a 6c step.

It wopuldn't surprise me to see it down a good 8-12% from yesterday's close.

All out at 238. Picked up 18 ticks from a range of 60 odd :bad:

I think there's probably a long trade now for 10-15 ticks...

notting · 25 January 2013

skc said:
All out at 238. Picked up 18 ticks from a range of 60 odd

Can't complain about that!
Volume coming in between 2.30 and 2.40

notting · 25 January 2013

Back short at 2.49

Smurf1976 · 25 January 2013

notting said:
3.5 to 233 :silly:

Oil in the ground is one thing. Being able to technically and profitably get it out and to a purchaser are entirely different things.

I could say that there's probably some minute concentration of gold in the soil under my house. That doesn't mean there's a way to profitably extract it.

Garpal Gumnut · 25 January 2013

Very interesting price and volume action today. $2.40 seems an important price point for some.

gg

Mr Z · 25 January 2013

I have it as a low strength support area, it may hold but I doubt it will. We blew through it to the upside easily, I suspect it will cave to the downside just as easily.

Garpal Gumnut · 25 January 2013

Mr Z said:
I have it as a low strength support area, it may hold but I doubt it will. We blew through it to the upside easily, I suspect it will cave to the downside just as easily.

Yes I'd agree.

Much supportive buying by I believe they are called gnats or bats with low volume buying.

A few wayward snorts could cause a crumble.

gg

Mr Z · 25 January 2013

Day tripping shorters exiting? Could be a volatile start to the week next week!

noirua · 26 January 2013

basilio said:
Does anyone else think the Shale Oil announcement has too much blue sky ? That it has been marketed to a largely unsophisticated investing public that only see the (possible) 22 billions barrels of oil reserves and don't realise this is a very uncertain and long term proposition ?

It seems to me that every paper in the country is carrying the Press Release as a popular news story rather than a financial one. The result seems to be self fulfilling bubble. Perhaps its a neat way to justify to the Chinese the proposed $4.50 a share for the UCG/GTL project

I believe LNC has some very valuable assets and will be well worth its price. I'm just not convinced that this latest jump is based on a realistic deal.

May well be overdone as most of the shale in the Arckaringa has a mining license issued to China's largest company CNOOC and all of the area south of Coober Pedy has a mining license issued to Australia's White Energy Limited WEC, and Western Plains Resources WPG holds licenses to the East at Penhryn.

Mickel · 26 January 2013

noirua said:
May well be overdone as most of the shale in the Arckaringa has a mining license issued to China's largest company CNOOC and all of the area south of Coober Pedy has a mining license issued to Australia's White Energy Limited WEC, and Western Plains Resources WPG holds licenses to the East at Penhryn.

Noirua, are you saying that CNOOC and WEC particularly have mining licenses that overlap LNC's Petroleum Exploration licenses in the Arckaringa basin ?

If that is the case, wouldn't the PEL's have preference for shale oil ?

Do you have any references for the other companies' mining licenses ?

I can't see any big mining leases in that area shown on this Sth Aust Govt site - https://sarig.pir.sa.gov.au/Map

notting · 26 January 2013

You got the wrong map there Mickel
LNCs map for presentation to insto's looks more like this:

Mickel · 26 January 2013

Ha ! Ha ! Notting.

My query remains serious and my map is from Sth Aust Dept of Mining.

Smurf1976 · 26 January 2013

So let me get this straight. Linc Energy, a small company with limited experience, has supposedly found up to 233 billion barrels of oil.

To put that into perspective it's a bit more than has been found in the entire USA, which has thus far produced more oil than any other country, over the past 150+ years of oil exploration. It's far larger than the North Sea and larger than Ghawar (Saudi Arabia), the largest known oil field in the world.

Now pardon me for wondering why it is that the likes of Shell, BP etc all somehow missed this one? Even the local "major" companies like Santos missed it, preferring instead to mess about with comparatively trivial deposits in the Cooper Basin. BHP didn't find it either and nor did any of the many other more experienced (than Linc) companies who have explored for various minerals and/or drilled holes in the ground over the years.

I just don't believe that Linc is going to produce anything even remotely close to 233 billion barrels of oil in South Australia. That's about 20% of all oil ever used in the history of the modern world and makes Linc the world's largest oil company in terms of reserves and SA the world's largest oil deposit. If it were true, then it represents a massive change in Australia itself with SA as the dominant state economically and most present day activities reduced to being of trivial importance economically.

I suspect that they will run into the same wall that others before them have tried and failed to jump. Oil shale is just that, shale. It's kerogen not actual oil that can be pumped as you'd normally do and getting liquid fuels out of the stuff is no mean feat to achieve in an economical and environmentally acceptable manner. Oil in the ground is one thing, getting it out is where the problems arise.

Tyler Durden · 26 January 2013

Smurf1976 said:
So let me get this straight. Linc Energy, a small company with limited experience, has supposedly found up to 233 billion barrels of oil.

To put that into perspective it's a bit more than has been found in the entire USA, which has thus far produced more oil than any other country, over the past 150+ years of oil exploration. It's far larger than the North Sea and larger than Ghawar (Saudi Arabia), the largest known oil field in the world.

Yes! And you can get a share for only $2.41!

But wait, there's more! If you buy now, that share will include a possibility of future joint ventures and partnerships!

How's that for a bargain?!

But wait - there's more!

There's also exploration in Alaska, all this for only $2.41!!!

Bargain!!!

Garpal Gumnut · 27 January 2013

Mr Z said:
Day tripping shorters exiting? Could be a volatile start to the week next week!

I'd be more concerned about the insto jockeys.

Lots of dough to be made on a stock such as this.

gg

noirua · 27 January 2013

Mickel said:
Noirua, are you saying that CNOOC and WEC particularly have mining licenses that overlap LNC's Petroleum Exploration licenses in the Arckaringa basin ?

If that is the case, wouldn't the PEL's have preference for shale oil ?

Do you have any references for the other companies' mining licenses ?

I can't see any big mining leases in that area shown on this Sth Aust Govt site - https://sarig.pir.sa.gov.au/Map

CNOOC interest in The Arckaringa Basin:

http://asaconference.com.au/files/2...nergy-ASA-Conference-Brisbane-28-Aug-2012.pdf

WECs Interest is larger than England:
http://www.abload.de/img/woomera-review-map-mme6t.png

Western Plains Resources - Penhryn:
WPG Resources - Peculiar Knob
http://www.westernplainsresources.com.au/projects-peculiar-knob.html

Mickel · 27 January 2013

Thanks for those references Noirua .

I note that they are only mineral exploration licenses to date and in the case of Altona
only a small part of the Arckaringa Basin.

My understanding is that they don’t cover exploration for oil (incl Shale Oil).

It is obvious that the PELs and MELs overlap. Hopefully the SA Govt has a better
process for resolving any competing claims for ground than the Qld Govt has so far
between Coal Seam Gas tenements and those of UCG.

As for the other posters, I suggest you read all of the latest announcement-
http://www.lincenergy.com/data/asxpdf/ASX-LNC-458.pdf

and also read Peter Bond’s comment regarding the “$20 Trillion “ headlines
http://www.brisbanetimes.com.au/bus...nc-oil-find-20130124-2d8zf.html#ixzz2IrThlnpZ

And finally the LNC find is Oil Shale not Shale Oil. There is a big difference. DYOR.

PS Noirua, the voting on Stock Forums has closed.

Garpal Gumnut · 27 January 2013

noirua said:
CNOOC interest in The Arckaringa Basin:

http://asaconference.com.au/files/2...nergy-ASA-Conference-Brisbane-28-Aug-2012.pdf

WECs Interest is larger than England:
http://www.abload.de/img/woomera-review-map-mme6t.png

Western Plains Resources - Penhryn:
WPG Resources - Peculiar Knob
http://www.westernplainsresources.com.au/projects-peculiar-knob.html

Mickel said:
Thanks for those references Noirua .

I note that they are only mineral exploration licenses to date and in the case of Altona
only a small part of the Arckaringa Basin.

My understanding is that they don’t cover exploration for oil (incl Shale Oil).

It is obvious that the PELs and MELs overlap. Hopefully the SA Govt has a better
process for resolving any competing claims for ground than the Qld Govt has so far
between Coal Seam Gas tenements and those of UCG.

As for the other posters, I suggest you read all of the latest announcement-
http://www.lincenergy.com/data/asxpdf/ASX-LNC-458.pdf

and also read Peter Bond’s comment regarding the “$20 Trillion “ headlines
http://www.brisbanetimes.com.au/bus...nc-oil-find-20130124-2d8zf.html#ixzz2IrThlnpZ

And finally the LNC find is Oil Shale not Shale Oil. There is a big difference. DYOR.

PS Noirua, the voting on Stock Forums has closed.

Thanks .

Probably best posts of the year.

gg

LNC - Linc Energy

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