re: Ann: LNC Oil and Gas Division Results for...
Lory Linc were very sneaky using an average on average comparision which to be honest means absolutely nothing.
The thing is they drilled a lot of new wells in December 2012 to achieve the 4667 bopd Net figure (as at 31st Dec 2012), so it is pointless comparing current average production to last quarters average production which would of only had a few days production from the new wells.
The starting point has to be production at 31st Dec 2012 to make it meaningful. Hence 3793 bopd (average for 3rd quarter) divided by 4667 bopd (as at 31st Dec 2012) gives you a 19% reduction in production and this was despite drilling another 9 new wells in the third quarter.
If we new what the Actual bopd was at 31st Mar 2013 and excluded the 9 new wells drilled in the quarter we would see what the true depletion rate was. It must be at least 19% and almost certainly higher as I left in the new wells and used the average rather than the figure as at 31 st Mar.
Linc are very good at spin and manipulating numbers to make things look good. This is a very good example of that.
LNC Price at posting:
$1.52 Sentiment: Sell Disclosure: Not Held
