LNC - Linc Energy

Mickel · 27 May 2011

Mr Z said:
Looking at my chart I would say that the struggle with the $3 area is coming to an end. We have some resistance @ 3.12 then 3.25 and 3.34 (according to my methodology!) Then we have clear sky up to the 4.10 area where we should see head winds up to strong resistance at the 4.56 line. My guess is that will cap this years upside. Nice move yesterday, looking for some follow through soon!

My on LNC!

Thanks for your chart analysis Mr Z. Certainly some interesting times ahead for LNC.

dogeatdog · 27 May 2011

Hardly the "explosion" in volume I was anticipating, but a reasonable range in which to trade today.
I certainly appreciate your latest input MR Z, and as a year long holder on Linc stock, obviously hope the top end of your analysis proves correct
I fear however, the macro economic environment, including the pending Greek crisis, may cause negative sentiment next week, and return Lincs sp below $3. IMHO :dunno:
Personally I'm now hedged.
Pleasant weekend people

dogeatdog · 30 May 2011

Linc makes a further investment in AFC.

www.supergenfuelcells.co.uk/aggregator/categories/1

Mickel · 30 May 2011

dogeatdog said:
Linc makes a further investment in AFC.

www.supergenfuelcells.co.uk/aggregator/categories/1

Thanks for that reference, Doggy.
http://www.supergenfuelcells.co.uk/aggregator/categories/1

LNC has been issued approx 5.2million shares of AFC for approx GBP 2.1 million to take its holding to 12%, up from 10%.

Another interesting revelation in the article is that the CEO has resigned because of a difference of opinion (presumably with the board).

Bas, this may be the reason why LNC has been silent about their plans for AFC with UCG since obtaining their initial shareholding.

basilio · 30 May 2011

It is a puzzle as to the resignation of the previous CEO. It could mask some significant issues in terms of the commercial viability of the technology ( but I have absolutely no basis for this speculation ).

It would be good however to see a final beta cell operational, reliable and capable of being produced in commercial quantities at a good price.

There actually is plenty of competition in this field. Success will require being an effective competitor against the largest energy suppliers and retailers in the world. I don't think you win in that arena simply because you have a better product.

basilio · 31 May 2011

Another decent jump in price and volume today. Up 18c to 3.21. Perhaps that coal sale announcement will be sooner than later.

dogeatdog · 31 May 2011

Mr Z said:
Looking at my chart I would say that the struggle with the $3 area is coming to an end. We have some resistance @ 3.12 then 3.25 and 3.34 (according to my methodology!) Then we have clear sky up to the 4.10 area where we should see head winds up to strong resistance at the 4.56 line. My guess is that will cap this years upside. Nice move yesterday, looking for some follow through soon!

My on LNC!

MR Z, So far your spot on.
Accept a cyber beer from me :bier:
Based partly on the information you posted here, I placed a couple of trades that worked out almost perfectly.
Thank you so much.

LNC holder

luckypaul · 1 June 2011

Hmmmm! Looks like there are a lot of companies jumping on the stranded coal/syngas bandwagon http://www.proactiveinvestors.com.au/companies/news/16777/wildhorse-energy-says-early-results-from-feasibility-study-confirm-the-potential-of-syngas-project-16777.html

I guess this IS good in that it will bring the processes and their possibilities to the public eye (which it currently isn't) but on the bad side if any of these 'minor' companies mess up and pollute the water table or Mrs Miggins cup of coffee the whole industry will go down the tubes.

Linc are so professional at this and were world leaders, I am struggling to understand why progress, commercialisation and even focus now seems to be rather lacking?

dogeatdog · 2 June 2011

Sitting here having watched the US market, and with ten minutes before the ASX opens for business.
Will be interesting to see if Linc drops significantly today.

http://www.theaustralian.com.au/business/markets/wall-street-shares-routed-as-the-dow-tumbles-279-points-on-us-economic-fears/story-e6frg91o-1226067604961

LNC holder

mr. jeff · 3 June 2011

thought i would jump the gun and et you know there is a trading halt on LNC until announcement of an acquisition oil asset
good luck
GTG!

dogeatdog · 3 June 2011

mr. jeff said:
thought i would jump the gun and et you know there is a trading halt on LNC until announcement of an acquisition oil asset
good luck
GTG!

This is out of the Blue
Hopefully good news.

http://www.lincenergy.com/data/asxpdf/ASX-LNC-331.pdf

LNC Holder.

Jonathan111 · 4 June 2011

dogeatdog said:
This is out of the Blue
Hopefully good news.

http://www.lincenergy.com/data/asxpdf/ASX-LNC-331.pdf

LNC Holder.

300 million oil aquisiton

http://www.theaustralian.com.au/bus...eal-looks-sealed/story-e6frg8zx-1226068960304

Mickel · 4 June 2011

dogeatdog said:
This is out of the Blue
Hopefully good news.

http://www.lincenergy.com/data/asxpdf/ASX-LNC-331.pdf

LNC Holder.

Hi Doggy

Not really "out of the blue".

In my post of 26 May (No. 1915) I quoted-

" In the U.S., Linc Energy has four mergers-and-aquisitions teams looking at potential acquisitions of energy resources in Wyoming, Alaska, Texas, Illinois and North and South Dakota. The company is in the middle of completing due diligence on a "few" acquisitions, he said.
"There are no shortage of projects," Peters said."

The latest story in The Australian is the result of the 4 M & A teams' due diligence work.

As the article says, the proposed oil fields are adjacent to their current coal holdings (which I believe are in Wyoming), so the proposed oil fields are probably in Wyoming or Sth Dakota or both.

I consider that for $300 million they will obtain around 10 times the potential reserves of their initial purchase of Rancher (100M barrels of oil for $20M).

In my view, PB wouldn't outlay $300M unless LNC could earn at least $2Billion. There is a shortage of CO2 in the USA and LNC has the ability to produce CO2 for $40 per barrel of oil total cost.

While this is great news, I'm not sure the market will reflect it in the share price immediately as it doesn't appear to realise the cost advantage that LNC has over other oil producers with EOR.

dogeatdog · 5 June 2011

Mickel said:
Hi Doggy

Not really "out of the blue".

In my post of 26 May (No. 1915) I quoted-

" In the U.S., Linc Energy has four mergers-and-aquisitions teams looking at potential acquisitions of energy resources in Wyoming, Alaska, Texas, Illinois and North and South Dakota. The company is in the middle of completing due diligence on a "few" acquisitions, he said.
"There are no shortage of projects," Peters said."

The latest story in The Australian is the result of the 4 M & A teams' due diligence work.

As the article says, the proposed oil fields are adjacent to their current coal holdings (which I believe are in Wyoming), so the proposed oil fields are probably in Wyoming or Sth Dakota or both.

I consider that for $300 million they will obtain around 10 times the potential reserves of their initial purchase of Rancher (100M barrels of oil for $20M).

In my view, PB wouldn't outlay $300M unless LNC could earn at least $2Billion. There is a shortage of CO2 in the USA and LNC has the ability to produce CO2 for $40 per barrel of oil total cost.

While this is great news, I'm not sure the market will reflect it in the share price immediately as it doesn't appear to realise the cost advantage that LNC has over other oil producers with EOR.

Hey Mickel.
Yes of course your right, and thank you for the reminder. At least one of us is on the ball
I guess I was expecting the sale of the next coal tenement, rather than the acquisitions in question.
Leaves me wondering if both the above mentioned will be released prior to the re-opening of trading. Just a thought

Mickel · 5 June 2011

I don't think Justyn Peters' presentation last month has been referenced here to date.

This is it- http://www.asx.com.au/smalltomidcaps/asia/linc_pres.pdf

Particularly interesting pages are-

Page 23- Location of Rancher Oil Fields.

Page 25- EOR Strategy

Page 27- Hydrogen Fuel Cells

Page 30- Summary and Milestones

Very bright future for LNC.

LNC Holder.

basilio · 5 June 2011

Nice one Mickel. Delighted to see the specific mention of Hydrogen fuel cells and the above ground gasification process.

It does look exciting

Brian Acheson · 6 June 2011

LINC ENERGY ACQUIRES SIGNIFICANT OIL PRODUCING ASSETS IN TEXAS & LOUISIANA, USA

● Linc Energy has acquired 14 oil fields consisting of 156 leases covering approximately 13,400 acres in the Gulf Coast Region of Texas and Louisiana, from ERG Resources LLC, at a purchase price of US$236m.
● Current oil production is approximately 3,300 barrels per day (over 1.1 million barrels per annum).
● The immediate plan over the next 12 months is to increase oil production on the acquired fields with additional drilling and well optimisation so as to exceed 6,300 barrels per day (over 2.2 million barrel per annum) by the 4th Quarter of 2012.
● The potential also exists for a significant increase in production from Enhanced Oil Recovery (CO2 flooding) which Linc Energy will be investigating over the coming 12 months.
● Acquired fields contain Net Proven Reserves (1P) of 20.5 Million Barrels of Oil (MMBO), and Net Proven and Probable Reserves (2P) of 22.3 MMBO.
● These assets are cash flow positive on day one of the acquisition.
● The Royal Bank of Scotland (RBS) has commenced arranging minimal recourse debt financing to support the acquisition and the first year of capital expenditure for both the ERG assets and the previously acquired Rancher Energy Corp. oil field assets in Wyoming.

----------------------

Visit http://www.topstocks.com.au/stock_d..._thread&threadid=667454&postid=667454#p667454 to read this post and others on the LINC ENERGY LTD discussion board.

Brian

Mickel · 6 June 2011

Mickel said:
Hi Doggy

Not really "out of the blue".

In my post of 26 May (No. 1915) I quoted-

" In the U.S., Linc Energy has four mergers-and-aquisitions teams looking at potential acquisitions of energy resources in Wyoming, Alaska, Texas, Illinois and North and South Dakota. The company is in the middle of completing due diligence on a "few" acquisitions, he said.
"There are no shortage of projects," Peters said."

The latest story in The Australian is the result of the 4 M & A teams' due diligence work.

As the article says, the proposed oil fields are adjacent to their current coal holdings (which I believe are in Wyoming), so the proposed oil fields are probably in Wyoming or Sth Dakota or both.

I consider that for $300 million they will obtain around 10 times the potential reserves of their initial purchase of Rancher (100M barrels of oil for $20M).

In my view, PB wouldn't outlay $300M unless LNC could earn at least $2Billion. There is a shortage of CO2 in the USA and LNC has the ability to produce CO2 for $40 per barrel of oil total cost.

While this is great news, I'm not sure the market will reflect it in the share price immediately as it doesn't appear to realise the cost advantage that LNC has over other oil producers with EOR.

I finished writing my opinion just before the announcement came out. I publish it here to show I had the strategy correct but many of the numbers wrong. I was too low in the debt funding % but too high in the current oil production.---

On reflection I think my comment above on the value of the 3 new oil fields at $2Billion is on the very low side.

I now think that this purchase, at 15 times the cost of the Rancher purchase, will have approx 1 Billion BOO which is 10 times the reserves of Rancher which was In Liquidation. While not all of this may be recoverable, similiar to Rancher,at least 1 field may have high existing production (10,000Bopd +) with a large reserve recoverable with EOR.

This would provide a large immediate cash flow which would make borrowing around $150 M a "no brainer".
I'm sure I have heard or read that LNC would consider this either at the 2010 AGM or since then. With a large cash flow in the USA in the coming years it certainly is a better option than issuing more shares and also allows LNC to hold out for the best price for Teresa.

All in my humble opinion.

LNC Holder

basilio · 6 June 2011

Interesting to see how the market has reacted (in the very short term ) to the news.

A couple of big buyers sent LNC to 3.15 - but this hasn't been backed up with any further support. LNC dropped below 3.00 and still sits below it's initial opening price.

This is one scared, skittish market. I think on almost any objective analysis the LNC oil deal is excellent value. And yet there is still little systemic support despite the imminent Teresa sale and this deal ?

Mickel · 6 June 2011

basilio said:
Interesting to see how the market has reacted (in the very short term ) to the news.

A couple of big buyers sent LNC to 3.15 - but this hasn't been backed up with any further support. LNC dropped below 3.00 and still sits below it's initial opening price.

This is one scared, skittish market. I think on almost any objective analysis the LNC oil deal is excellent value. And yet there is still little systemic support despite the imminent Teresa sale and this deal ?

I agree Bas. As I said in post No. 1930-
"While this is great news, I'm not sure the market will reflect it in the share price immediately as it doesn't appear to realise the cost advantage that LNC has over other oil producers with EOR. "

LNC - Linc Energy

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