Liquefied Natural Gas Ltd Stock Market Press Releases and Company Profile
Provides Research Report From Foster Stockbroking
Provides Research Report From Foster Stockbroking

Perth, June 27, 2014 AEST (ABN Newswire) - Liquefied Natural Gas Limited (googlechartASX:LNG) (googlechartLNGLY:OTCMKTS) (Company) is pleased to advise that Foster Stockbroking Pty Ltd has provided research coverage on the Company.

To view a copy of the report, titled "US Investors Light up Magnolia", please visit our website at
http://www.lnglimited.com.au
and click on Investor Centre and Analysts Reports.

Below are the investment highlights from the research report:

Investment Highlights:

- Magnolia fully funded to Financial Close: recent placement of $49.5m provides LNG with all remaining development capital required for Magnolia including all permitting and FEED activities through to Financial Close, build out the project team located in Houston and review growth projects.

- US institutional investors get set: with 80% of the recent placement and a sell down of the HQC shareholding taken up by US investors who also own Cheniere Energy (LNG US), the register of LNG has quickly transformed to have US institutions holding up to 40% of the stock with a number of well known investors now disclosed: Baupost Group, Valinor Management, Claren Road and Fairview Capital. On market buying support has followed recent disclosures with the stock 300% higher in recent months.

- DOE changes to granting non-FTA catalyst for re-rating: DOE's granting of non-FTA to be based on readiness for final action (currently an application queue) will prioritize resources on the more commercially advanced projects. This change could see Magnolia 'jump the queue' for non-FTA export approval in line with FERC approvals mid-2015, which in turn opens up tolling discussions with high caliber LNG buyers and a balance sheet to support bankable tolling agreements.

- FERC filing acceptance upgrades LNG buyers and investors: both LNG buyer and investor interest has increased since May when Magnolia's FERC filing was accepted. This represents a critical step towards Financial Close and lifts the credibility of Magnolia to a 'real' project vs one of many proposed US export projects. The draft EIS will get underway next month setting the regulatory timeline to achieve all approvals by mid 2015.

- Management appointments de-risk delivery of Financial Close: we view the recent appointments of John Baguley (COO) and Rick Cape (CCO) a significant step in de-risking miletstones that include EPC, Tolling and Finance. Both hires come with +30yrs in EPC, big oil and LNG development and operating experience.

- Upgrade in Magnolia valuation to $3.32/sh: in our valuation assumptions we have upgraded our capacity tolling fee to US$2.30mmBTU and US$2.50mmBTU for our 4mtpa case and 8mtpa case respectively. Together with a change in valuation approach using a conservative 12x EV/EBITDA multiple we derive an un-risked LNG equity value of US$2.2b on the 4mtpa case and US$4.2b on 8mtpa. We discount this future value by 15% per annum to derive our risked value for 4mtpa of US$2.40/sh (FV assumed FY19) and 8mtpa of US$3.77/sh (FV assumed FY21) (A$2.58/sh & A$4.05/sh respectively). Our valuation for Magnolia of $3.32/sh is based on a blended valuation of our discounted 4mtpa and 8mtpa case.

Foster Stockbroking Pty Ltd received a fee to act as a placement manager for the Company for a share placement that was completed on 18 June 2014 but has not been paid a fee for research coverage.

To view the full analysts report, please visit:
http://www.abnnewswire.net/lnk/CUBU8TR2


About Liquefied Natural Gas Ltd

Liquefied Natural Gas Limited (ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:

- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;

- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;

- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and

- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.

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Contact

Liquefied Natural Gas Limited
T: +618-9366-3700
F: +618-9366-3799
WWW: www.lnglimited.com.au



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