Ann: Wildhorse Signs Binding Heads of Agreement w, page-6

re: Ann: Wildhorse Signs Binding Heads of Agr... So that leaves us with a 4 million dollar stake in Linc Energy: O&G, Shale and UCG

Quick summary about LNC for newbies below

Credit Suisse has outperform rating and $2.14 target for Linc Energy

We initiate coverage on Linc Energy (Linc) with an OUTPERFORM rating and a S$2.14 TP, implying 49% potential upside.

¦ Core value and growth in conventional oil and gas. Our DCF valuation for Linc's proved reserve oil production represents 80% of the current share price, but, in addition, the company has two potentially material projects in Alaska and Wyoming should they be sanctioned in the next 24 months.

¦ Australian shale—early days. The un-risked prospective resource estimates from two reserve auditors for Linc's acreage in the Arckaringa Basin are staggering—103 bn to 233 bn barrels of oil equivalent (boe); the next stage is further delineation of the opportunity, for which it would seem logical to bring in a strategic partner with deep pockets and shale expertise.

¦ Underground coal gasification (UCG): The next big thing? Linc has developed proprietary UCG technologies that it is now moving to monetise via license and royalty agreements with stranded coal asset owners. The first agreement is in place (in South Africa) with other opportunities in Russia and Ukraine at initial stages of agreement.

¦ Valuation: 20% discount to risked NAV implies 49% potential upside. We use a risked NAV methodology to arrive at an NAV valuation, to which we then apply a 20% discount to arrive at our TP of S$2.14, implying 49% potential upside. There are several potential catalysts in the next 12/24 months (Alaska reserves moving to the 'proved' pool, a CO2 supply agreement in Wyoming, further UCG license agreements and a farm-in to the shale play).

¦ Key risks include crude price weakness, failure to migrate reserves to the proved category, failure to source a CO2 supply in Wyoming and failure to sign definitive technology agreements for UCG.



Plus our world class Uranium asset:

Wildhorse Mescek Hills uranium asset prospects 77 million pounds of uranium plus a further 90 million pounds exploration potential.

This asset will be worth billions of dollars based on conservative production levels and a $79 per pound price.

The hungarian government is currently negotiating a nuclear agreement, a Farm out to China National is most likely imo

Wildhorse Energy's Mark Hohnen knows what to do.
He sold Uranium miner Kalahari for £600m to the Chinese.
History might repeat itself.