how many wells, page-14

MIKEMENNELL>>>>>>>>>Good point. And you have not mentioned the massive CAPEX required for the CTL plant itself. This UCG methodology is not yet confirmed as a viable method for CTL. Hence, i rate LNC as medium-high risk company.
Raising large sums in current credit contraction will not be easy. Feel straightforward energy plays such as oil producers offer more certainty and can benefit directly and instantly from high oil price.
Oil producers can also hedge the oil price and Aus $.




Mike you are onto something here.

I'm gonna sell my shares first thing monday.

I never stopped during all this excitement of being able to produce a barrel of diesel for $25 what it might actuall cost to build a plant. wow. yeah. oh yeah. and if you and_I_haven't thought this one through, well you can bet your bottom dollar that the linc guys haven't thought it through either.

why i bet its massive! HUGE! I mean we're talking 20,000 barrels, a DAY!!!!!. that will be a huge plant. like the size of a refinery even. hey, why don't you and I be the first to think this through. I'll get my calculator.

okay, 20,000 x ($140 - $25) = 2,300,000 x 365 days = $839,000,000.

Now, I heard somewhere, (no doubt here at hotcopper) that they expect it to cost $800,000,000 to build a plant like this.

Yes, there it is, we busted then now eh. spending a massive $800million dollars to make a measly $839,000,000, thats only making $39million dollars.

dud investment. i can get a better return at bankwest on term deposit.

sigh. i guess it won't work after all.

there is NO way that they could raise such a large sums in this current credit contraction.

Why didn't Peter Bond and the linc people think of this?

when the market discovers this I'll be wiped out. I've only made 600% profit so far, and I'm already angry to see my shares slip from $4.90 to $3.25 (do you think insiders know and are selling)