Been doing some research and reflection on current open positions (with a cold beer in hand) and was wondering to myself what is holding Linc back. I dont really know why, as all the news has been pretty damn positive especially the sale of the Galilee tenament last year. The $500 million in the bank, plus the ongoing royalties from Adani ensure future cash flow will not be a problem.
The acquisition of 122,000 acres of Alaskan oil and gas leases last year and the recent acquisition of a further 181,414 acres of Underground Coal Gasification (UCG) coal exploration licences in Alaska is also positive with the spudding of its first gas exploration well (LEA #1) located in the Cook Inlet Basin in Alaska last year coming on pretty quickly. The presence of high quality gas charged zones has been reported and in one of the announcements PB said that Linc Energy is aiming to have the Flow Test Rig on site in late March 2011.
With the recent acquisition of the 27,856 acres of producing oil fields in the Powder River Basin in Wyoming from Rancher Energy Corp (for $20 million, Rancher paid $70 million) with a current oil production of approximately 190 barrels per day across three fields and the potential to increase oil production from EOR (CO2 Flooding) to 10,000 barrels/day to 20,000 barrels/day range with total recoverable oil from these fields being approximately 100 million barrels, this transaction is pretty significant also.
The twofold increase in syngas flows from the Chinchilla production plant last year shows Linc are leading the field in the UCG area and the potential sale of the Theresa tenament down the road are even more reasons for this share price to be racing ahead.
Even as I write this, I am thinking I need to buy some more shares on any dips in the future as there is just far too many reasons why this company is going places.
I look forward to reading any further details about Linc and hope that other holders can shed some light as to why Linc is not racing along, or if I have missed something in my research or misquoted PB.
Mickel, as a long term holder and supporter of Linc can you add anymore dialogue or correct my interpretation of the companies current state?
I guess in time the sp will appreciate and there are a few hurdles to cross with the closing of the Theresa sale, the realisation of the increase in flow rates from Wyoming fields using CO2 flooding and the testing and commercialisation of Lea 1 in Alaska. But from where I sit alot of these facts have not been taken into account in the sp yet.
Good luck to all holders