why i am shorting linc, page-2

I do agree with a fair bit of what you say apart from the following:

(1) You are correct that the oil purchase so far has contributed nothing but Cedar Point could change things as the first two wells were very good.
This is why Cedar Point well 3 is so important but I agree if either the next well is dry or the depletion rates turn out to be higher than expected then it was a very bad investment.


(2)UCG has delivered two likely deals now and does have a lot of potential. It is however still several years away.


(3)They won't run out of cash in six months as they have other debt facilities in place. As at 30th June 2013 I estimate they have approx $200M in cash and remaining undrawn debt.


Totally agree about that Cricket though especially being from Sydney and having to fund a Queensland team !

What they need to do is sell something, slash the Admin costs and bring the debt down.