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Winners can laugh
The figures from the company suggest about 15% oil, 35% condensate (which can be considered as oil) and 50% sales gas (natural gas) for the risk adjusted scenario of 3.5 billion barrels of oil equivalent. So that's about 1.75 billion barrels of oil and condensate which is the most valuable stuff.
I just can't see how management could possibly be properly focused on so many different things at once. Each one of them is a difficult challenge in itself, and it's not as though Linc has the resources of someone like BHP or Wesfarmers and can divide itself into multiple units each focused on a specific business.
I continue to hold a small investment in Linc.
So they are saying there is shale oil and not oil shale?.. I'm hearing different things... Also what do you guys make of this article saying that they found conventional oil?
http://seekingalpha.com/article/113...e-just-won-the-oil-lottery?source=google_news
How does a company right this thinking? Engage in a good news media campaign of there own! Stunts and Gimmicks and HELLOOOO positive news exposure left right and center. Give a nice rounded figure and let the media run with it, heralding it as the coming of the next era . As far as I'm concerned I fined the recent positive news exposure as fighting fire with fire. Personal I have far more faith in someone who knows the ways of the world and is willing to get down and get dirty for the company. Never let to many facts get in the way of a good story. I'd rather see actual tankers carting loads off to the service stations right around the nation. But for now I've bought the dream (1.25-1.14-.75 -.65 -.62 -.57 and .69 on the way up) my retirement depends on it.
That said, if i see the head kahuna selling off any of his tidy little nest egg I might start questioning his motives! Until then I'll remain a L/T shareholder.
A bit of terminology in "layman's terms" might be helpful here I think.
Another way to understand is to use an analogy. Suppose that you categorised all alcohol into "shots of vodka equivalent" based on the alcohol content. It sounds good, until you realise that buying a few bottles of metho will get the numbers up much more quickly than if you bought decent wine instead. It's a chemical-based measurement which takes no account of any other factors.
Here's some current price figures. All are expressed as price on a "barrel of oil equivalent" basis. So the price for gas, is the price for 1 BOE of gas.Great analogy. Also important to note that BOE (from gas or whatever) certainly doesn't have the same price as actual oil. Just like your 3 bottles of metho may be equivalent to 10 bottles of Penfold Grange in alcohol content. but the price would be slightly different.
I think LNC is roughly where it should be right now. The big surge on the back of the shale oil announcement was , IMO, a puff job.
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