This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Australia Oil Fields Direct Investors To Linc Energy

Stocks in this article: LNC

Linc Energy (ASX:LNC), an Australian energy company headquartered in Brisbane, has recently announced its discovery of up to 233 billion barrels of oil in the Arckaringa Basin. The Australian government is hoping this development can allow the country to transform into an oil exporter and retain its energy self-sufficiency.

Linc Energy (ASX:LNC ) stock price over the past year:

At first glance, this piece of news may make investors extremely bullish on Linc Energy; with the price of oil hovering around 96 dollars a barrel, this could translate to huge growth for the company. Before coming to such conclusions, however, we must explore some important issues associated with the recent discovery.

The Arckaringa Basin’s reserves consist of shale oil, as opposed to conventional crude. Shale oil comes from sedimentary rock and the conversion process into liquid form proves extremely costly and difficult. CEO Peter Bond predicts that in the worst case scenario, only 3.5 billion can be extracted, which would still render 336 billion dollars for a company with around 3 billion in yearly revenues.

Bond has also stated that it could cost up to $300mm to start the extraction process, which would not hit its stride for several years. Analysts have refrained from jumping on the Linc bandwagon, stating their desire to first find out more about the quality of the oil reserves, the project timetable and other factors such as infrastructure and piping.

Investors should also consider the prospect of Linc Energy possibly sharing the rights of the reserves with a larger oil company to help out with the extraction process. With all these factors taken into consideration, and even in the worst case scenario, it seems Linc Energy may have a bright future ahead of it. Linc’s recent discovery and improved performance in 2012 should place the firm on investors’ watch list. In 2012, Linc managed to up its production to around 6,000 barrels per day, which helped the company’s stock price rally past $1.20 by the new year (a doubling of share price from August). It could also be wise to keep an eye out for Australia ETFs and piping companies that will soon join the party.

Linc Energy (LNCGY) stock price over the past six months:

Written by Kapitall's Sherif Hamid


Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs