The importance of this announcement is that it shows LNC is busy trying to acquire tenements in the USA. This one took 6 months. Don't expect everything to happen overnight.
I believe the cost of this acquisition should not be publicised because they ae trying to buy acreage in other places and it doesn't make business sense to ratchet up the expectations of sellers. In the grand scheme of things if the cost is only 1 or 2 cent/ton of coal - who cares.
I think PB is smart enough notto pay too much.
Regarding OSI's comment that it will take 5 years for UGC to be widely taken up may well be true - but not because there is lots of cheap natural gas.
Many countries are short energy and would like to be more self sufficient. UK, India and Vietnam are looking at UGC as a new source of energy. LNC won't be the only company doing UGC that's for sure. Widespread use of UGC will take years and billions of dollars of investment.
LNC Price at posting:
$2.60 Sentiment: LT Buy Disclosure: Held
