The decline rates on the Barbar Hill wells are much higher than LNC expected. They spent a heap of money drilling new wells but have not generated one surplus dollar from the wells (when you include the US Admin Costs and Interest payments).
The Auditors will either force them to make a write down or will make them increase the rate of depreciation. If they don't that the value of the drilling new wells sitting on the balance sheet will be less than the Assets.
The year on year oil production has gone up but they spent a heap of cash achieving that.
As far as all the new Finance and other jobs that you keep posting, I know you see this as a positive but I see it as a negative as it just keeps increasing Admin costs.
They should be doing less projects and reducing Admin costs and not the reverse.
LNC Price at posting:
$1.48 Sentiment: None Disclosure: Not Held
