lion to spin off cooper basin, page-2

Entek Energy to list on the ASX...

It could indeed be a good way to "release" the locked up value of Aussie assets...then again, it could just as easily be seen as a life raft, designed to help LIO shareholders abandon ship?

Quick back of the envelope figures.

Buy 1000,000 LIO shares now at a cost of $6,000

This will entitle you to approx 11,300 Entek shares

Assume LIO drops to .005 after the distributon record date.

Assume Entek trades about 15c when they list.

We get:
1,000,000 LIO @ .005 = $5,000
11,300 Entek @ .15 = $1,695

Therefore, our initial investment of $6000 in LIO has now become $6,695

Best scenario:
LIO holds at .006 and Entek trades at 20c...our initial $6000 investment becomes $8,260

Worst scenario:
LIO drops to .004 and Entek trades at only 10c...our initial investment becomes $5,130

So...upside of $2,260 versus a downside of $870.

Should be good overall for LIO in my opinion.

Cheers!