This announcement relates to the purchase of US Oil fields.?...

This announcement relates to the purchase of US Oil fields.





? Linc Energy completes the full purchase of 13 oil fields consisting of 156 leases covering approximately 13,400 acres in the Gulf Coast Region of Texas and Louisiana, from ERG Resources, L.L.C.
? Purchase price of US$236 million plus adjustment for capital expenditure during the due diligence period.
? All legal action between Linc Energy and ERG has also ceased as part of this purchase.
? Acquired fields contain Net Proven Reserves (1P) of 20.5 million barrels of oil equivalent (MMBOE) and Net Proven and Probable Reserves (2P) of 22.3 MMBOE net.
? Production from these assets for the third quarter of 2011 is an average of approximately 3,100 barrels of oil equivalent (BOE) per day gross, comprising approximately 94% oil.
? The immediate plan over the next 24 months is to increase oil production on the acquired fields with additional drilling and well optimization.
? Linc Energy has also taken over the ERG office in Houston to support its Texas & Gulf Coast operations, with many of the ERG employees joining Linc Energy, ensuring a seamless transition.
? Linc Energy has entered into a US$300 million non-recourse credit facility with BNP Paribas, with an

The above is the story so far.

Now having bought this asset for $235 Plus Umiat for $50 M.
LNC has pledged this assets to BNP Paribas.
LNC USA now wants to issue $265 million notes against these assets as well?

U guys can assess the likelyhood of success here!
What would i know....

*** If LNC can borrow it's a whole new ball game!!