speculatively speaking

Speculatively speaking IMO - yesterday's welcome bounce was on short covering due to securing of Finance facility which de-risks LNC from an equity raising for around the next two years. The negative cash flow and prospect of an equity raising has been a flag which shorter's have flocked to for some time, much to the frustration of medium/long term holders.

The SP is basically priced at LNC's oil and gas production. If nothing else was forthcoming, the SP should increase as target goals are reached in the increase of same. The eventual view over the next 9 months is positive net cash flow for LNC.

Historically shorts have been completed on small volume and may continue to do so, but that game is accumulating higher risk factors than the smarter ones may care for. If they do continue then I would expect far tighter margins.

Time may also be shortening for those that have been considering entering, accumulating, diluting entry point and one may want to use any further volatility to do so, just something to keep in the back of the mind, it's in mine anyway.

Things to look forward to in Q4...

1. Obviously at the top of the list is the GCL Deal being completed. This will obviously be at the forefront of questions at the next AGM, so hopefully someone can glean further information or clarification there.

2. Completion of licenses and environmental approvals for Wyoming project.

3. Further results in moving Umiat 1P, 2P and 3P estimates towards increasing 1P Reserves.

4. Continued growth in USA BOPD production to meet or exceed target goals.

5. QLD Government approving 40,000+ BOPD UCG/GTL plant. If they have any brains they will, but I have never accused a Politician or Bureaucracy of having those, so we will have to wait and see. Indications of present political climate and Queensland's fiscal situation may favour Linc's proposal, so we will have to wait and see.

2 & 4, appear to be moving along nicely. Any of the others may result in an additional favourable increase.

In the longer term, Teresa JORC exploration drilling has been delayed to to past weather factors, so we may have to wait until Q1 2013 for further clarification there. In any case we should see EIS completed Q2 or so in 2013, with mine start in 2014 and initial production 2015. Just something to keep at the back of the mind for medium to long term holders as a value add. Adani progress as well and can probably add that to the future value add column as
well.

As for the rest, they are there, but IMO not really of an imminent concern until a commercialization UCG/GTL project is completed.

Anyway for what it's worth that's my 2 cent speculation.

Good luck with your decisions.