no change in reporting style, page-17

Jonathan,

How is the loan being paid off with oil sales? I did a very quick exercise for the anticipated March 2012 quarterly.

I get Net Operating Cash Flows of negative $29 million

In arriving to that figure I used the following

Receipts $24,000,000 (double Sept qtr assuming double production)

less

Payments - Expl & eval ($4,000,000) per LNC est cash outflows
Payments - Development ($25,300,000) per LNC est cash outflows
Payments - Production ($7,300,000) per LNC est cash outflows
Payments - Administration ($14,000,000) per LNC est cash outflows

add

Interest received $100,000 (based on $32m reducing to ???)

less

Interest and other costs of finance paid ($2,500,000) estimate based on last qtr

Net Operating Cash Flows = ($29,000,00)

The only difference in what may be reported assuming no coal sales this quarter is perhaps extra collections from debtor oil sales but in the same token LNC could delay payments to suppliers to make the figures look better. So cashflows never really give you an accurate picture due to timing of receipts and payments. We are dealing with cash accounting and its not until the end of the year we find out the true picture when accrual accounting is adopted in the Financial Reports.

Basically the missing variable above is the revenue from oil sales but I am assuming double production so I double the revenue. A fair assumption I would think?

So LNC is not cash positive and won't be for the foreseeable future.