short term trading week starting - 10th feb, page-111

Entry for STT List

LNG - Gas infrastructure in US (FA)
Cash: $13.8m
Market cap: $115m

18 month Price Target: $2.25 by Proactive Investors
(Full report: http://www.lnglimited.com.au/IRM/Company/ShowPage.aspx?CategoryId=190&CPID=1983&EID=17526114)

Liquefied Natural Gas Ltd (ASX: LNG and U.S. Exchange: (OTC ADR Ticker: LNGLY) (“LNGL” or the “Company”) is an international developer of mid-scale Liquefied Natural Gas “LNG” projects and aims to be amongst the first five producers and exporters of U.S. LNG. The Company is fast tracking the development of its 100% owned flagship Magnolia LNG Project that is located in the epicentre of the burgeoning energy sector on the U.S. side of the Gulf of Mexico.

Proactive Investors expects the new over-the-counter (OTC) trading facility in the U.S. will attract strong interest from international investors, seeking the “next” Cheniere Energy type investment opportunity.

Proactive Investors believes that LNGL is at the beginning of a surge in share market re-rating; tracking a path by Cheniere Energy that saw its share price increase from US$2.68 to $43.94 in four years.

Proactive Investors anticipates the Stonepeak funding terms should be satisfied by mid-2015 and that the 50% interest retained by the Company in Magnolia LNG will therefore value the Company at A$779 million or $2.25 per share. By end of 2016, our valuation increases to $6.91 a share for Liquefied Natural Gas.