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Linc Hires Advisers for U.S. Oil Asset Sale or Partnership Deal

ByJames Paton
February 16, 2015

(Bloomberg) -- Linc Energy Ltd. hired two banks to help bring in a partner or sell oil assets in Alaska and Wyoming as it looks at potentially expanding in the U.S. Gulf coast region, according to its chief executive officer.

“We’re in active discussions with a number of groups, particularly around our Alaskan project,” Craig Ricato, CEO of Brisbane-based Linc, said today by phone, declining to name the financial advisers. The company is targeting a decision within the current half, he said.

Linc, which said in September that it received unsolicited approaches for its oil assets in Alaska and Wyoming, has allowed companies into its data room, Ricato said. The company, whose shares trade in Singapore, also has oil fields in Texas and Louisiana and shale operations in Australia.

The decline in oil prices has hurt companies including Linc, forcing the industry to cut more than $40 billion in spending and lower the value of their assets. Linc last week announced writedowns of about A$118 million ($92 million).

With the oil downturn, Linc is “looking for opportunities” in the Gulf Coast, Ricato said. “This market is challenging, but there are also opportunities it presents.”

The company sold its coal business to United Mining Group for A$5 million, Linc said today. The book value of the assets, including liabilities, was A$29.7 million at the end of 2014, it said. As part of a revenue-sharing accord, Linc said it also may earn about $590 million in future coal sales from the assets.

http://www.bloomberg.com/news/articles/2...rship-deal

Gone case stock. Highly likely somebody has issued put options with the investment bank screwing around with the market price.

(06-05-2015, 05:00 PM)propertyinvestor Wrote: [ -> ]Gone case stock. Highly likely somebody has issued put options with the investment bank screwing around with the market price.

The price has dropped ridiculously to 27 cents. Really gone case!

http://www.theedgemarkets.com/sg/article...te-holders

SINGAPORE (May 7): Shares of Linc Energy fell as much as 29% after the oil and gas producer said it was in talks with its US subsidiary’s note holders over the terms of its cash call following the collapse in oil prices.

At 4:18pm (0818 GMT), the stock was down 21.8% at 21.5 cents, with more than 15.8 million shares traded.

The Brisbane-based company made the disclosure after the Singapore Exchange queried it over the 16.7% drop in its share price yesterday. The sharp falls on both days shaved as much as 48% off its market value.

The selloff came just a few days after Linc Energy issued some 8.4 million shares upon conversion of US$5 million ($6.6 million) worth of its US$200-million notes due in 2018.

The notes bear a 9% coupon rate and can be converted into shares at 77 cents each.

Early this year, Linc Energy repaid its note holders US$50 million. Following the latest conversion, it now has US$145 million of notes outstanding.

The deleveraging comes as the company cuts capital expenditure and prepares to sell non-core assets amid a tougher operating environment.

It said in February it would sell its conventional coal business to United Queensland Resources, a unit of United Mining Group, a move expected to help it save more than A$20 million ($21.2 million) a year in administrative and liabilities costs.

Linc Energy also said in February it hired two banks to help it look for a business partner or sell some of its US oil assets.

Be greedy when others are fearful, worth a look at this price.

(07-05-2015, 04:51 PM)valuebuddies Wrote: [ -> ]Be greedy when others are fearful, worth a look at this price.

Its low share price is one thing, but how many of us here have the expertise to value its assets on its balance sheet. Genting berhad may have bought a big stake in the past 2 years but sometimes big institutions also do stupid things

I could be wrong but I guess the slump in share price could be attributed to the following

1) Weak oil price.
2) Weak coal prices.
3) Carmichael royalty had been sold at too low a price.
4) Conventional coal asset had been sold at too low a price.
5) Conventional O&G assets (especially Umiat) need high capex to develop.
6) Arckaringa needs expenditure to explore – nothing substantive has been found to date.
7) Potentially, Linc could be running out of cash………………………
8) Short selling.

What would eventually happen is of anybody’s guess.............but Linc could potentially be one of the many casualties of weak oil/coal prices.............

Wondering what the SSH (Peter Bond, Genting and Credit Suisse) is going to do...........

(vested - with profit only)

(08-05-2015, 11:15 AM)safetyfirst Wrote: [ -> ]

(07-05-2015, 04:51 PM)valuebuddies Wrote: [ -> ]Be greedy when others are fearful, worth a look at this price.

Its low share price is one thing, but how many of us here have the expertise to value its assets on its balance sheet. Genting berhad may have bought a big stake in the past 2 years but sometimes big institutions also do stupid things

Genting berhad would have made millions if they had bought put warrants relating to this stock

an unwanted child delisted from resources savvy ASX that found its way to SGX...

Still has any relevance on Linc?

http://www.smh.com.au/business/mining-an...ih7h3.html

Adani stands down major contractors
Date
July 21, 2015 - 6:59PM

Lisa Cox
National political reporter

Adani insisted on Tuesday that the mine would still go ahead and it was not pulling out of Australia. Photo: Glenn Hunt

Indian mining giant Adani has suspended two major contractors on its Queensland coal project, raising fresh speculation about the company's ability to finance Australia's largest coal mine.

Project managers Parsons Brinckerhoff and Korean construction company Posco, which is also touted as an investor in the final project, were told late last week to stop work on the Carmichael mine, rail and port project.

Company sources said senior Adani executives flew to India at the weekend for talks about the project's future.

Adani's coal mine plans have led to protests, including this one in Brisbane.
Adani's coal mine plans have led to protests, including this one in Brisbane. Photo: Glenn Hunt
It comes less than a month after Adani stood down four engineering firms – WorleyParsons, Aecon, Aurecon and SMC – and scores of workers involved in preparatory works on the development, which would open up Queensland's vast Galilee Basin.

"It seems to me like they're at the crossroads of do they continue or do they do what GVK did and sack everyone," one source said.

"I think they just don't have the money and can't get the money to go ahead. I think, one, Adani don't have the money, and two are realising this is a long, drawn-out process."

Indian billionaire Gautam Adani.
Indian billionaire Gautam Adani. Photo: Glenn Hunt
It also follows revelations by Fairfax Media that senior Queensland Treasury officials had advised the Queensland government last year that they believed the project was unviable.

Adani insisted on Tuesday that the mine would still go ahead and it was not pulling out of Australia.

"These structural changes are connected to the same engineering contracts and preliminary works variations Adani announced last month," an Adani spokeswoman said.

Parsons Brinckerhoff referred requests for comment to Adani, while calls to Posco were not returned.

Adani staff were told last month that the engineering firms were suspended while it waited for approvals from the Queensland and federal governments that are required before work can begin.

Parsons Brinckerhoff are the principal project management consultant on the project, while Posco had been set to build Adani's 388-kilometre rail line from the mine to Abbot Point and take a financial stake in the development.

The standing down of both key firms is viewed by workers involved in the development as an extraordinary step.

Queensland's Labor government included no potential royalties from the project in its recent budget. But it has continued to back the development despite calls for an inquiry after hundreds of pages of confidential Treasury correspondence raised serious concerns about Adani's transparency and its ability to finance the coal mine.

During the Queensland election campaign Labor pledged that it would not invest in a rail line connecting Adani's mine to coal terminals at Abbot Point.

But Fairfax Media reported last month that Queensland's Department of State Development had prepared a briefing for ministers on alternative options for assisting Adani, including a so-called "royalty holiday" period that would save the company hundreds of millions of dollars if its mine goes ahead.