The discussion of the need for capital raise at this time is interesting.
Funding for already announced activity is not an issue in calendar year 2012 and if the oil production can reach 7000 BOPD then 2013 should be fine too based on recent guidance on restructure and cash burn (while BKK have already been advisors!)
What would LNC need to do a capital raise for exactly?
Gasifier 6 in Wyoming?
Commercial scale operations with GCL JV at Chinchilla?
Developing Teresa in a JV or on their own?
Ackaringa basin shale gas/LNG/oil fields project? (no indication yet of reserves and viability but maybe an imminent announcement of SAPEX find?)
Poland UCG Project? (Recent rumours online)
Buyout of some other UCG companies? (why?!)
They wont need capital to do the GCL project so what are people thinking a possible capital raise would be for? Why do people think a capital raise is likely?
My take is that BKK give market credibility to institutional investors and also have particular niche skills and experience with FIRB and international mergers and acquisitions that would be particulalrly useful to finalise the GCL JV for Mongolian operations . I would not expect a capital raise at this time unless in a new JV expanding Chinchilla UCG to commercial scale following QLD govt change or on JV developing Teresa which has been hinted at before....
LNC Price at posting:
51.5¢ Sentiment: Buy Disclosure: Held
