Ann: LNC Oil and Gas Division Results for Third Q, page-21

re: Ann: LNC Oil and Gas Division Results for... Hi Al,

Sorry if I offended you. As always with my responses to you that was not the intention but an unfortunate result of soundly disagreeing with the way you chose to compare some of the numbers. And honestly, I thought I'd taken the particular ramble you took offence to out of my response before I posted it. I'll blame my iPad and say a sincere sorry.

The reason I was planning on not posting for a number of months was to avoid this sort of tit-for-tat. But given I poked you and you deserved a right of reply it's only fair I respond one more time to at least allow you the due respect of knowing I read your response.

Not much needs to be said however.

You agree that 4667 bopd is a net production figure based on a single days production in Dec '12. Yet you insist on comparing that to an average production figure which by its very nature defines an environment where a HIGHER than average production figure MUST have been achieved at some point. So to compare an apple [max production output] to an orange [average production output] and come out with a depletion rate is a little loose.

I agree however, that without a March exit rate it's impossible to compare max output of the collective fields across quarters. Moreover I accept that it’s incredibly unlikely that the company bettered the stated exit rate from Dec because if they did we would almost certainly know about it. That's simple and true. But the lack of a March maximum gross production figure only serves to make the Dec ‘12 exit rate irrelevant in comparison to anything other than a Dec '13 exit rate, which we need to wait 7 months for.

The company is working against depletion with makes them members of an elite club called oil producers. New wells are an inevitability and when they come on-line is a matter of mere academics. The fact that they DID come on-line and will continue to do so is the takeaway point.

I know you know that averages should be compared to averages. I just can't work out why a smart guy like you isn't? And I’m right there with you in thinking the company is in the woods. I have no doubt about that. But oil production IS up Q on Q [as rteflected in sales] and while that is not the sole answer to the companies woes, it will help. If the average ever falls, you can quote me this thread and I will be on your side berating management with the best of them!

I'm off to do a better job of holidaying and I need to try harder not to come back, so I apologise in advance for my lack of any further debate.