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LNC - Linc Energy

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basilio said:
On the last day of trading on Friday 38 million shares were moved. Final price for LNC was 99.5c.

If they really have a good future even in the short term I think those last shares will be a bargain when its relisted.
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Yes Bas. The S/P finished at $1.08 at 4.00 pm and in the auction afterwards 15M of those 38M changed hands lowering the price to 99.5c

Some of those may have been institutions that were restricted to investing on the ASX.

The latest announcement by LNC today has extended the deadline to transfer your shares to a SGX trader from today to next Friday (29 Nov).

Hopefully we will have some positive announcements by or at the AGM next Thursday.
 
The story continues...

LNC has just released its prospectus. Just an overview of their operations and, I assume, full disclosure of risks, opportunities ect.

Mickel would you care to check it over and give us a heads up on the salient points ? Shouldn't take you more than, say 10 minutes ?

http://asx.com.au/asxpdf/20131126/pdf/42l4f7f83m3csx.pdf
Plus 4 more documents


(PS You could warm up with War and Peace ?)
 
I'm truly amazed at the media / marketing abilities of this company. The same story has been popping up in the headlines for SA on news.com.au literally all year and it's there again today.

Something seems odd with this. Not even the likes of BHP, Woolworths etc or even someone like McDonald's or Shell could manage this sort of publicity.

Here's a link to the actual story. It's the same article that's been popping up since January. In short, it amounts to one almighty ramp for the stock - apparently they've got more oil than the likes of Iran, Iraq, Venezuela or Canada with only Saudi Arabia having slightly more.

http://www.adelaidenow.com.au/news/...n-fuel-australia/story-e6frea83-1226560401043

My opinion - if it was really such a massive goer then the likes of Exxon, Shell etc would have taken over Linc long ago. Look at all the fuss about Iraq over the past couple of decades. It seems a tad pointless if there's twice as much oil in South Australia just waiting to be developed. I don't buy it.....
 
They have gone to Singapore because the scam is old and tired here
The stock would have gone below 20c and stayed there IMO.
 



OK Bas, here is my summary of those various announcements last week (I won't confirm I read every page) -

Parts 4 & 5 cover the description of assets and past explorations and plans for future operations for New Emerald Coal P/L (NEC) which cover Blair Athol, Teresa, Pentland, and Dalby & Chinchilla coal tenements.

Part 3 covers the same for US Gulf Coast, Umiat and Wyoming Oil and Gas assets as well as Arckaringa Basin reports.

Part 2 is a general proforma document which sets out much financial information. However it leaves blank the number of shares to be issued and the issue price. These details will be completed in the final document to be issued on 9 Dec as advised in Part 1.

You can easily access all the announcements here - http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=lnc&timeframe=D&period=M
 
More important (IMO) are these comments from the AGM last week-

Gas from UCG is the priority in Europe ($16-17) and Asia ($18-19) compared to USA ($3-4). Poland may well have the first producing UCG plant.

The exception is in Eastern Russia (with LLC YakutMinerals) where they will also be looking at GTL as the current operations there are paying $250 per bbl for diesel, most of which is transport costs. They plan on producing UCG as well for their power needs as the area is very isolated.

Bondy also stated that they are close to finalising a construction price for a 5000 bpd GTL plant for $50,000 per bbl.
This is approx. half of previous prices mentioned.

By the way the new listing date on the SGX is now 18 Dec.


http://www.lincenergy.com/data/asxpdf/ASX-LNC-528.pdf
 
Nice one Mickel...

I was being funny with my suggestion that you paraphrase the prospectus. It was a huge document.

Very interesting about the update on CG in Russia. Not quite sure what you mean by $50,000 bbl. for the GTL plant What was the estimated final cost of the 5000bpd plant ?

Cheers
 

Yes, I gathered that, Bas, with your "PS" comment, but thought I'd give an overall description of approx. 1500 pages of ASX announcements.

Regarding GTL plant construction, indications by Velocys (was Oxford Catalysts) over the past 12 to 18 months were that the plant would cost $100,000 for each boo per day produced. That would be $500M for a 5,000 bpd plant. This was a huge blowout from the original estimates in 2007/8 of approx. $800M for a 20,000 bpd plant.

This news that LNC is looking to finalise construction at a price of only $50,000 per bbl per day ($250M) is great news.

There is an anticipation of much good news to come over the next few months, eg Cedar Point oil production, Umiat results, UCG in Poland and Africa and Arck Basin JV to mention some.
 
Mickel said:
Gas from UCG is the priority in Europe ($16-17) and Asia ($18-19) compared to USA ($3-4). Poland may well have the first producing UCG plant.
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It's the constantly changing business objectives that worry me about this company.

At various times their primary aim has been diesel from UCG electricity from UCG, conventional oil and gas extraction, shale oil extraction and processing, simply finding more coal to either sell the resource or mine it, and now it seems they want to simply sell the UCG gas as gas.

It's like trying to create Woolworths etc if you've never run a shop before. You'd at least want to get something up and running, supermarkets or fashion or hardware or whatever, before trying to create a retail empire that sells practically everything under numerous trading names. The same applies to Linc - I'd like to see them actually develop something into a major business prior to trying to get all sorts of other things up and running.

Fundamentally, UCG is the major technical asset that the company has. They'd be better off just going into the UCG business as such, and supplying that gas under long term contracts to someone else who then produces the diesel, electricity or whatever else they do with it. Linc is simply trying to bite off too much, too soon in my opinion.
 

I understand your worries/concerns Smurf.

I also understand that their plans needed to change with the GFC and subsequent non sale of Teresa (for $1.5B) and reluctance of Qld Govt to licence UCG while giving CSG a free run. On top of that, the coal price then collapsed.

The major Technical Assets (IP) that LNC has are both UCG and the GTL processes and of the two, GTL is the more profitable.
LNC initially bought up many coal leases for very little cost in the hope of finding deep underground coal suitable for UCG/GTL. Surprise ! surprise ! they found a lot of conventional coal that they sold/tried to sell -ie Carmichael/Teresa. In buying the oilfields in the US they gave themselves some cashflow while refining their UCG/GTL processes and working towards approval of these processes by Govt Authorities.

LNC has many 1st class assets and the Directors believe that being listed on the SGX will allow Asian and US investors to better appreciate these assets and give the Company more stability. Of course, LNC will need to start producing positive cashflow and profits for this to happen long term.

I believe that increased oil production in USA in the short term, successful drilling at Umiat (by 4/14) and an UCG plant operating by end of 2014 will go a long way towards that.
 
So it's now losing money on the falling Australian dollar for potential international investors.
AU is down from 1.38 to 1.12 against the SGD. What a decision!
If it had anything you could call attractive those internationals you mention would find it more compelling if it was still listed on the ASX given it would now be cheaper for them in AU $ even if it's share price had not continued to fall. Good one Bondi
 

Notting , your signature panel advises us that you are dyslexic and you have now proved it.

Firstly Linc only changed to SGX yesterday. Today the Aussie $ dropped 2c to the USD. If the Aussie $ had also dropped by a similar margin to the S$ we would be better off in Aussie $ terms and so would potential international investors.

But, to date, the Aussie $ has only dropped with the USD so your figures (whatever hat you pulled them from) are wrong.
 
True I'm clouded by my intense dislike for this company and the way its run so unfair to its shareholders. Wish you had sold it when it was up
 
Mickel said:
But, to date, the Aussie $ has only dropped with the USD so your figures (whatever hat you pulled them from) are wrong.
Click to expand...

It kind of just makes it worse for Ausi share holders as AU is actually up today against the SDG so existing holders like yourself have been harmed by the timing of it as well if the AU has bottomed for a while.

My comments were regarding Bond's statement that it will be more attractive to internationals (new investors, not existing losers). It won't be because the price is more expensive than it would have been given the fall of the AU vs SDG in the past week when the pricing was well and done. That's what I was on about.
Yes, I did get the float date wrong I just assumed that it had been going for about a week and that would have been good for existing holders but they don't even get that - screwed again.
 
On December 19th, 2013, Linc Energy Limited (LNC) was removed from the ASX's official list at the request of the Company.
 
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