It is useful to remind a few of the newer s/h in Lrl some...

It is useful to remind a few of the newer s/h in Lrl some history with this stock and why i think the same corporate engineering is being put in place with it this time.

Many moons ago LRL had an in specie distribution to its shareholders of its interest in Omega corp. In turn mantra was an in specie distribution from Omega corp. End result was both were taken over for $100ms in cash during the uranium boom.Many of the larger shareholders then, such as Ian Middlemas, are back as shareholders today.

1. Lrl is still with a negative enterprise value so ,and history is forever repeating,it would be within the realm of poss that we will see spin offs again.

2.a. lrl to retain the thermal coal asset is my guess.
b. Oil and gas assets to be spun off into new asx and or hk listed entity. S/h to receive in specie.
c. Mt leyshon...once production agreed to also be spun off subject to any regulatory issue with cleanup and so on.

Hence we get an unlocking of enterprise value.Timeframes are difficult to determine but i am once again working on Chinese time so it may be slower than we would like but so what. they have cash,projects are beginning again and I can see a path to unlocking some value.

One other point. this latest gas project is clearly sustainable subject to drilling. The estimate is 300bcf recoverable and running through SEHs latest missive we are looking at production costs of $1.80 and a well head revenue of $7.50. Margins are vg. Petrochina is the jv partner once they come in and its only for 40% not the ubiquitous 51%.

News flow.

1. JV ann on Mt Leyshon.
2. thermal coal deal in China
3. Left of filed energy play in China.

Very happy to leave cash parked in lrl during this more than difficult market time. For some it has taken too long and skeptical of latest deal etc.The answer is to sell and move on as plenty of fish in the sea but I like history.