shorters providing opportunity?, page-7

re read the announcements Dan, LNC does benefit from increased oil prices, and this was pointed out again yesterday.

"The question is why tip hundreds of millions into American oil when at the time LNC had a suite of Coal and UCG assets that were in need of development funds?"

Purchase a going concern, that with input of money and make-over improvements etc, can become more profitable in a short period, whereas the other divisions take longer because of Govt regulations and processes. They have been progressing coal and UCG, but there needs to be balance between that expenditure and future cash inflow. The US oil and its improvements and contribution to general cash flow is and was the answer. This improved profits of the oil division will also increase the capital investment in the US asset base, which borrowing and interest is far easier and more favourable.