Point 1. LNC also has a non recourse loan facility of $300M with $131M drawn. The quarterly says they can draw more based on increased production & oil price. With production increases they CAN draw more.
2. Av BOPD for last qtr was 2800+ with 4000BOPD reached in June. So average for Sept Qtr should be min of 4500 BOPD and cash revenue of $25M-$30M for that qtr.
3. Av BOPD should be around 5500 for Dec qtr with cash revenues of $32M-$37M.
4. By Dec 12 they should have the first $60M from GCL.
So, providing their plan is approx on target, they will have no cash shortages.
LNC Price at posting:
53.5¢ Sentiment: Buy Disclosure: Held