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Linc Energy Limited
Pleasing Interim Drilling Results
LNC $0.26
BUY
22 February 2007 S&P/ASX 200 28 April 2006 XJO Jeremy Tobias
+612 9226 0086
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BBY maintains its BUY recommendation on Linc Energy Limited (LNC) with a DCF valuation of A$1.52/sh and a 12-month price target of A$0.60/sh after the company released pleasing interim coal drilling results today. LNC earlier this week also announced that it had entered into a Cultural Heritage Management Program (CHMP) with two Aboriginal tribes, an important positive step in the process to obtain Environmental Impact Study (EIS) approval for the 20,000 bbl per day Gas to Liquids (GTL) plant. Both these developments reiterate BBY’s positive view on LNC. We expect a progressive re-rating of the stock to occur as the company continues to meet and exceed prospectus milestones. Key Highlights