There are a lot of oil companies in serious trouble right now and LNC is no exception.
Only oil companies with low overheads and minimal debt will survive if POO stays this low.
You could argue that LNC is a UCG company but nearly all its revenue comes from oil so that makes it heavily exposed right now.
I can't see the logic of spending heaps of cash on the Ark right now as nobody in their right mind is going to either purchase this asset or do a joint venture with LNC whilst POO stays this low.
The company should be in survival mode right now cutting every bit of spend possible to enable them to ride out the current storm and survive and that should include culling directors and staff.
If they play the gambling game by continuing to explore the Ark and Alaska I fear they may well not survive unless the POO makes a huge comeback (which appears very unlikely in the next 1 -2 years).
LNC Price at posting:
99.5¢ Sentiment: Sell Disclosure: Not Held
