Dear reader, The cheaper natural gas is, the more economic it is to ship around the worldas Liquid

Natural Gas (LNG). And there is enough cheap gas in the Middle East, Australia and North America to keep supplying the Far Eastwhere gas is 3-4x the pricethat the LNG shipping industry will stay tight and profitable for years. Thats why in December 2010 I bought Golar LNG (GLNG-NASD) at $15. The stock climbed to $20 within months, and then the day after the Fukushima nuclear disaster in Japan the stock started a year-long move to $48. That accelerated a trend that was already in motion, and within weeks every single ship in the global LNG fleet was busy. Its now trading in the high $30s, and I still think the stock is going a lot higher. They have also now increased their quarterly dividend three quarters in a row and the company is rolling over old contracts at low prices to new ones at much higher pricessometimes 3x more! Revenue, cash flow and gross margins are still increasing. Golar's business is shipping Liquid Natural Gas (LNG) around the world. Theyre like a marine pipeline... only with much cheaper valuations than regular onshore pipelines. I became a buyer when I saw the small global LNG shipping industry reaching capacity, and day rates for these ships (=profitability) were rising. This report my original research and all my updates will show you the investment potential of Golars business, and give you a confident understanding of the ongoing, high-quality research I do for my subscribers. Follow my original report below, through the updates, and then sign up for a risk-free trial of the Oil and Gas Investments Bulletin. - Keith Schaefer

OGIB BULLETIN #44 JUNE 2012 (updated from Feb 2011) GOLAR LNG (GLNG-NASD)
To me, the best stocks have a story so compelling and simple that I dont have to spend huge amounts of time analyzing its performance Golar LNG (GLNG-NASD) is that type of stock. Its simple, its unique, its management has a remarkable track record in creating shareholder wealth and its the world leader of a big trend that could last for a decade or more the increasing use of natural gas as an energy source all over the world. (LNG=Liquid Natural Gas) After the Fukushima nuclear disaster in March 2011, the world immediately decided LNG was the major fuel of the future, and any spare capacity in the LNG shipping world was quickly contracted outand day rates for LNG ships soared. The result: For the first time ever, there is a real GLOBAL market for natural gas, in the

form of LNG as supply, demand and the cost and technology of logistically moving it and docking have improved. Supply from countries like Qatar and Australia is increasing dramatically, and usage by countries like Korea, Japan, China and Brazil is also increasing dramatically. The global LNG fleet including Golar - is the pipeline. Think of Golar as a marine pipeline company. Day rates for LNG shipping have soared from $40,000/day to $150,000/day in the last 18 months, as the shipping market has become VERY tight; with essentially NO spare capacity. Golar has several ships coming off contracts this year that can be renewed at the new rates. And they have 11 new LNG carriers on order, giving them years of profitable growth ahead. Golars BIG edge is that it is the first company in the world to have successfully retrofitted a LNG tanker to a vessel called an FSRU Floating Storage and Regasification Unit . This is where the compressed LNG is put back into usable form, out in the ocean, and pumped into gas lines onshore. They have 2 FSRUs on order, one in Q4 2014 and one in Q1 2015. Ill explain the power and profitability of being the world leader in this. They have the next 2 FSRUs being built in the world. There are only 15 now operating; they have 4. Chairman John Fredriksen has made almost all of his billions from shipping. He owns 46% of Golar stock and intends to increase dividends as fast and as much as he can. Management has increased dividends in each of the last four quarters, from 25 cents per quarter to 35 cents. I am drawn to this stock they are not dependent on the commodity boom or on China to continue growing very quickly and profitably. LNG is the clean, cheap fuel of choice for the world right now and the market is willing to pay for huge safe growth that is not tied to the China/commodity story.

QUICK FACTS
Trading Symbols: GLNG-NASD Share Price: $35 Basic Shares Outstanding:80.14 million Mgmt Ownership 46.18 % Market Cap (Basic): $2.805 billion Long term DEBT $1.55 billion Enterprise Value (EV): $4.355 billion

THE LNG SHIPPING BUSINESS (abbreviated version)

(most of this info comes from the website of Golars competitor Teekay LNG Partners (TGPNYSE) I have paraphrased much of it) Liquefied Natural Gas--Liquefied natural gas (LNG) is a cheap way of moving natural gas

overseas by super-cooling it to a liquid form, reducing its volume by 1/600th of its gaseous state. The LNG shipping industry is growing rapidly with global demand for LNG expected to increase by more than 50% by 2030. Shipping Natural Gas Shipping natural gas includes the following three key stages: 1. Liquefaction To transform natural gas into a liquid state, it is super-cooled to a temperature of approximately -260 degrees Fahrenheit (-163 degrees Celsius). This process takes place at a liquefaction facility. This super-reduced volume allows LNG to be transported around the world economically, particularly to areas that dont have modern pipeline infrastructure. 2. Shipping LNG is shipped in double-hulled ships. LNG carriers transport LNG between liquefaction facilities and import terminals - which cost $1.5 Billion at least - or floating storage regasification units (FSRU) - which can cost $265 million. (starting to get the idea...???) The double-hulled ships insulates the LNG so it stays in liquid form. LNG that evaporates during the voyage and converts to natural gas (called boil-off) is used as fuel to help propel the carrier. 3. Regasification At regasification facilities, the LNG is returned to its gaseous state. Such facilities have been located on shore for many years but more recently there has been a growing demand for floating regasification units (FSRUs) on which the LNG can be regasified. Floating regasification allows countries who want to import LNG to gain fast and relatively cheap access to global LNG supply. Its advantages include: Floating regasification allows countries who want to import LNG to gain fast and relatively cheap access to global LNG supply. Its advantages include: Ability to fast track regasification access for new LNG importers (Dramatically-ks) Lower upfront capital investment compared to onshore facilities Can be relocated if demand is short term and/or seasonal Allows customers in new markets to gain confidence in LNG Good solution for when availability of land is limited Large pool of potential FSRU conversion candidates in the fleet (these are old LNG carriers that can be retrofitted into FSRUs very cheaply-ks)

A GROWING GLOBAL MARKET

Japan, Korea and India are the biggest Asian importers. In 2009 these countries received about 55 percent of total global LNG trade. Spain, France and the US are the Atlantic Basin's biggest importers closely followed by the UK. China is currently the worlds ninth largest LNG importer and is expected to become a major buyer of LNG in the future. Qatar, Malaysia and Indonesia are the biggest producers accounting for 44% of all LNG exports in 2009. Other major producers include Nigeria, Algeria, Australia and Trinidad & Tobago.

The pattern of global LNG trade is expected to change in the future. Up to now LNG trade has been concentrated in the Asia-Pacific region with gas sourced from Asia and the Middle East. Although this market will continue to expand, LNG demand from the Atlantic basin is also expected to increase. The global LNG fleet is growing rapidly to meet this increasing supply and demand. OK, there you go a bit of history and industry trends, major players etc. - LNG Shipping 101. The only other important item to know is that historically, LNG trades at 13% of Brent Crude. Where the industry is at right now is...that every single LNG ship in the world that can be working, is working. So what that means is that the day rate for these ships has gone up. Back in 2007 day rates for LNG tankers were as high as USD$110,000 a day; they went down to $30,000 after the crash of 2008, then in 2010 moved up to USD$47,000 then the market for LNG tankers got really tight after the Japanese nuclear disaster at Fukushima and have since shot up to $150,000. Golar estimates they need a day rate of only $33,000 to break even. I don't see day rates going higher, but I do see them being sustained at or close to this level for the next 2 years, and only dipping slightly from here to 2020. This chart from Golars May 2012 presentation shows just how rapidly the spot and short term LNG charter rates are improving.

On this next graph from Golar the axis on the left shows the number of vessels available for hire to transport LNG see all those vertical lines moving into the negative space area on the right side of the chart that means a tanker deficit is projected. Thats why day rates are now moving up so sharply.

This is a major trend that should last for many years. Global LNG demand is expected to increase 44% in the next 25 years. The percentage of shipping LNG vs pipeline is expected to increase. With all the shale gas being discovered in the world, the price of natural gas may

well stay low enough compared to oil that will make LNG shipping economic for a long time. So day rates for LNG carriers should continue to be highly profitable. Golar has 13 vessels in its fleet. The world is just in the infancy of a truly global LNG market with a big increase in long term contracts and active spot markets thanks to low gas prices and new technology. Nobody knows now what the nuances of this market will be in the future that will create big opportunities for investors, but the trend of a sustained and active LNG shipping market for the next decade or so seems assured to me. Im willing to put my money into that trade. THE COMPETITIVE EDGE - FSRU But like any energy services company, I want to find a company with a big competitive edge, and I think Golar has that. They are the world leader in FSRU projects Floating Storage and Regasification Units. There are only 15 FSRUs operating in the world right now and Golar has 4 of them. Golar can retrofit an old LNG tanker into an FSRU for anything between $85 to $125 million. NOBODY ELSE HAS DONE THIS. Other companies have built FSRUs from scratch, which can cost up to $300 million. This compares to a price tag of more than $800 milllion++ for an onshore LNG import terminal. For developing nations who dont have the cash, FSRUs are an obvious, cheap and safe way to get gas infrastructure built for the cleanest burning hydrocarbon money can buy. These LNG conversions are faster and cheaper than anything else right now. For the developed world, FSRUs get rid of the NIMBY syndrome NotInMyBackYard. Who wants an LNG terminal beside them that could, if it explodes (terrorism), flatten the earth for a mile or two? These ships sit 10-12 miles offshore just over the horizon and send the gas onshore via a flexible underwater pipe. This photo shows Golars Indonesian FSRU (in orange) taking its first cargo from an LNG tanker The other big plus for developed countries is that FSRUs can be MOVED. Countries like Brazil that see themselves significantly growing natural gas production over the next decade love FSRUs because they can lease them to someone else at any time, or simply hand the keys back to Golar later. Petrobras has 2 Golar FSRUs and has already moved one of them.

The FSRU industry is just in its infancy and I expect it to grow substantially over the coming 20 years for the reasons I just outlined. Unlike LNG carriers, which get contracts for 1-3 years, FSRUs usually get 8-20 year contracts, providing a long term stable cash flow that management can plan dividends around. Golar now has four FSRUs that are operational two with Petrobras (Brazilian National Oil company), one with DUSUP (Dubai Supply Authority) and one with Nusantara Regas (Joint venture between the Indonesian national oil companies Pertamina and PGN). The FSRU contract in Indonesia is particularly exciting because it is the first in South-east Asia, which is a region where the most global interest is centred for FSRUs. The orange ship on the right is the FSRUon the left is a regular LNG tanker delivering gas. Once the LNG is regasified, it will go to shore via undersea pipeline.

(The stock has been soft for awhile now because management indicated to the market in November 2011 conference call that they had another FSRU contract basically "in the bag" and then they didn't get it. So they're not perfect. But they are bidding on 7 other FSRU contracts right now, and have been shortlisted for two.)

GOLAR LNG PARTNERS (GMLP-NASD)

Golar owns 66% of another public company recently, Golar LNG Partners, (GMLP-NASD) which will be where the FSRU contracts get put. The money from this IPO in 2011 paid to buy out the GOLE minority shareholders and take it private again. Golar owns a majority stake in GMLP. So now when Golar (GLNG-NASD) gets an FSRU contract or long term LNG tanker contract, it gets sent down to GMLP. This makes GMLP a near pure play on the hot new FSRU industry. The market sees the global growth of Liquid Natural Gas especially with new shale plays greatly increasing supplyas a Big Theme. The market loves this new set up Golar has, as you can see by the volume and volatility of the share price. GMLP will pay out dividends the same as GLNGwhich means GLNG gets 66% of the dividends as well as their own cash flow to send out to their shareholders (which is where Fredriksen (and

therefore me) has his money.) As shown in the below graphic from GOLAR, GMLP has two FSRUs that Golar now has with Petrobras, and two LNG carriers that are currently under long contracts (8 and 13 years respectively) but are locked in at old-market rates. The Golar Freeze was recently transferred to GLMP by the end of 2011. Management and other sources indicate that the cash flow from the tankers will cover expenses and FSRU revenue should be distributable profits.

Being the smart cookies they are, management will vend in the other new FSRU in from GLNG to the new GMLP, increasing the dividend over this time frame plus being able to show increasing dividends each year the Big Money likes that; makes them feel comfortable. There are only a few companies that can build these LNG tankersthat construction market is so tight and analysts are actually asking what time-slot the builders have for Golar ships (Fortunately, Golar announced they were building most of those ships BEFORE the Japanese earthquake the tipping point that sent LNG stocks to the moon and the industry to the forefront of the mainstream investment market. Costs for post-Fukushima ships have gone up markedly.) Golar is currently building two new FSRUs (with an option to bump that to 6) one scheduled for completion in 2014 and the other in 2015 and one of them is on spec, which is something completely different. The lead time for them to convert one of their LNG tankers into an FSRU vessel is just over one year, so that could be a competitive advantage in one of the 2012 FSRU tenders. Management reiterates that this market is looking very favourable with 7

tenders in progress.

MANAGEMENT
To appreciate this company subscribers should understand what CEO and Chairman John Fredriksen has done in the past. First off, remember he owns 46% of the stock and his partners own more, to the point of just being under 50% in total. So this team is more than committed. He is a rags to riches, Horatio Alger type story. Born to a working class family in Norway, he started off as a trainee in a ship brokering company. But he had gumption, and chartered ships to transport oil in the Middle East during the Iran-Iraq wars. Fredriksen has built up the large oil tanker company - Frontline (FRO-NYSE) and is a major stakeholder in SeaDrill (SDRL-NASD; $33) an offshore drilling company. He is worth an estimated $7 billion - $11 billion, give or take. And he loves dividends. He has shown that he is good at managing companies and increasing their dividends. And as long as he owns 46% of GLNG, Im assuming he will continue his policy.

FINANCIALS
Golar LNG is the institutional crowd's favourite stock for the LNG tanker industry. In their recent Q1 2012 financials, Golar announced its 4th consecutive quarterly dividend increaseto 35 cents/quarter, up from 25 cents just over a year ago. Golar is a long term dividend playmanagement, headed by the legendary John Fredriksen, owns almost 50% of the stock. So his interests are aligned with the rest of us shareholders. The Company had 2011 operating revenues of $300 million, operating income of $121 million and a net income of $46.7 million. This compares to operating revenues of $244.0 million, operating income of $60.2 million and a net income of $0.4 million for the prior year.

Golar's average "equivalent time charter day rate" is now $90,464 over their 13 working vessels. This is sure to go up as new contracts are signed under the improving day rates. With the continued tightening of the shipping market, one year rates have reached $150,000/day! Golar continues to secure contracts for large annualized EBITDA into the future three year charter secured for Golar Grand ($39 million annualized EBITDA) and Golar Gimi reactivated into short term charter ($16 million annualized EBITDA into 2013). Golar has ordered 11 additional LNG carriers and 2 FSRUs, 5 of which will be ready in 2013 and 4 in 2014 and 2 in 2015. These New-Builds in conjunction with the ever increasing charter day rates will be key driver to the Golar revenue stream. They also have the ability to convert four old LNG carriers to FSRUs if they so choose. However, investors should understand this company uses a lot of debt to finance these ships, but that is against a 10 year contract, AND they must put up restricted cash against each ship so this is not a speculative debt instrument. This is one of the key pieces of the puzzle that makes GLNG so profitable debt is cheap right now (Golar pays just under 5% on its debt) and will create a great ROI from the ships cash flow. They currently have $2.4 BILLION in net debt and that will go to over $3 billion as they get these new ships in. Always have to keep an eye on that...

VALUATION
On a trailing PE basis, the stock is not cheapyou see net income of $46 million on a market cap of over $2 billion--but the market sees Golar LNG as a dividend play, given Fredriksens background. Consensus Earnings Per Share for 2012 is $2.18 and for 2013 is $3.15ish. At $35 share price and an annualized dividend of $1.40, the stock trades with a yield of 4% even. When I first bought the stock, every bit of research I read on Golar said that new FSRU contracts would be the main driver for the stock price, with increasing LNG shipping rates being second. While FSRUs are more sexy, and would likely get priced into the stock faster (because they usually come with 5-20 year contracts with price escalators built in), LNG shipping rates are now higher and will actually improve their EBITDA more than FSRUs. So I think I'll be selling my stock for $80/share plus inside 3 years even without FSRUs. But if they can win six new FSRU contracts in the next three years, that would add $1.80 in dividends, which in addition to the $1.40 annualized the company has now, gives investors a total of $3.20 in 3 years or so, and at a 4% yield I get a $80 stock price in 2014. A 6% yield = $53.33/share. And that's just from FSRUs; not counting the new ships or increasing day rates. Right now Golar is one of the most profitable companies in my portfolio - I believe Golar can be $100-$120 stock in 2 years, or even more. The LNG shipping market continues to be very tight; ZERO extra capacity. But day rates HAVE plateauedfor now. Their latest two deals, chartering their GIMLI vessel out for THREE years at roughly $137,000 a day and a (rumoured) one year contract at $150,000/day for Golar Viking. Analysts estimated operating costs on these LNG tankers of $14,000but even at full breakeven of $33,000 per day, that's a gross margin of 74%! Value Line, a venerable independent research service, models the company on 80% gross margin and 50% net.

WHAT COULD GO WRONG?

No investment is perfect. What am I on the lookout for that might tell me Im wrong? (And I really am a worry-wart.) 1. My biggest worry isnt until 2015, when there is a small surplus of LNG carriers forecast. That could have a big impact on day rates. Dayrates of $90,000 a day are profitable, but Golar is always expensivepriced to perfectionso even the stock chart could flatten, supported by yield but declining revenues at that time. 2. After getting four FSRUs in operation, Golar has missed the last couple bids. They need to show the market they can win bids in a more competitive environmentor I suspect that will take some shine off the stock, despite the fact all the new LNG carriers will greatly increase revenue and profits. 3. I dont know all the exact details of the $2.4 billion in debt, though I do know Fredriksen

owns a good chunk of it directly. Todays banking system in Europe and North America are in enough trouble that if debt all over starts to get called, you could be in trouble. 4. If oil does get to $70/bbl in Asia and stays there (I see this as unlikely), we could see some switching back to oil from natural gas in Asia, the main demand centre for LNG.

STOCK CHART

CONCLUSION
A true, liquid spot market in LNG is now emerging, due to low natural gas prices and new technology such as FSRUs. Golar LNG is THE world leader in FSRUs, and a (but not THE) leader in LNG transport with 13 ships. Management knows the shipping business inside out and owns 46% + of Golar LNG. You could argue that LNG is the only bull market in the energy sector right now. I want exposure to this sector. For now its in a small way until the world finds out if European debt/banking crisis causes another 2008 collapse.

I expect Golars fundamentals to kick in this next quarterEBITDA could double as several new ships have come onto new charters with much higher prices. Day rates are now extremely profitable for companies like Golar. It's one of my favourite stories right now and I think this could be one of the few Big Theme, buy-and-hold-for-5-year stocks. Cheap, global LNG supplies are growing very fast (and not just because of shale gas in the US Australia Indonesia and Qatar are rapidly growing reserves). Demand in Asia is rising fast but its also rising in Latin America, and even in the US. And there just isn't enough ships in the world to handle all this cheap new supply for at least three years. This equals pricing power for Golar and other LNG shippers. I own 500 shares of Golar with my most recent purchase at $35.02, though I have traded the stock for some decent profits in the past two years. My stop-loss on this trade is $29/share. Keith Schaefer Publisher, Oil & Gas Investments Bulletin

OGIB BULLETIN #90 APRIL 5, 2012 GOLAR LNG (GLNG-NASD)

As a small cap, high valuation NASDAQ stock, I would expect Golar to be down, or at least more volatile, than it is doing. Its holding in well at $40, skimming along its 200-day moving average (dma). That could be because two FSRU awards are expected in April, and Golar is in the running for both. One is in Indonesia, and Golar is one of two bidders left. The other will awarded by Valero for an FSRU in the Caribbean island of Aruba, just off Venezuela. Golar is one of three bidders left. Golar does need to show the market it can win FSRU contracts in a newly competitive field especially after all but promising one last quarter and not delivering. LNG carrier contracts are actually worth more money nowthe latest one by Stena was for $150,000 a day for three years. But FSRUs are for a much longer term, often 10-20 years, and will form the backbone of the dividend policy chairman John Fredriksen wants to continually increase. So its tough to say if the market would treat Golar losing both of these as a binary event, causing a big drop in the stock (10-20%) or as a yawn. The reality is they have several more LNG ships coming off contracts this year and will be

able to renew them at much higher rates, so they do have bullets in their arsenal. But as stocks swoon into a late April low any bad news could mean the stock is treated badly. Just be aware. (Nobody said it was going to be easy.)

OGIB BULLETIN # 130 MARCH 13, 2012 GOLAR LNG (GLNG-NASD)

On March 9, a professional short selling group called Pandora's Box came out with a strong sell on Golar. They not only took the company to task (rightly) for poor earnings throughout its history, but got personal on management and accused them of many things, including poor corporate governance and front running by insiders.You can read the full report, which is free and open to all, here: http://www.invest-door.com/downloads/Golar_PandorasBox_12Mar2012.pdf I'm not going to rebut every single point they make. I actually read this 35 page report to see what was right; and am as dispassionate as possible. They hit on several themes: 1. In the past, Golar operating revenue and overall finances have been poor. They are right. Until LNG took off after the Fukushima nuclear disaster in January 2011, this industry spent five years in the doghouse, as shipping companies ordered ships for to import LNG into the USbut then the shale gas boom hit. They had all this supply and no LNG market. But the Japanese earthquake changed everything, and the world is racing to increase liquefaction capacity all over the world. In the past however, their dividend generating ability out of their operations was truly horrible. They also dug up every bad deal this management team has done or allegedly good deal that didn't get consummated. Golar management certainly isn't perfect. 2. Valuations don't support current prices. There is no doubt the stock is expensive right now on any Price: Earnings or Price: Cash flow model. But I do expect cash flow to triple in the next three years. 3. The relationship between GLNG and the subsidiary MLP, GMLP-NASD, is...not good? Shall I say? Pandora's Box does do a good job of outlining just how much clout GLNG has over GMLP at the end of the day (glad I own GLNG and not GMLP), and that minority shareholders in GMLP (GLNG owns 65%) could get screwed. But they get mad at GLNG for creating a legal vehicle that has received a very high valuation in which they can raise money at much cheaper dilution than they could in GLNG. I thought management was supposed to take advantage of Investment Bankers' greed ;-).

Seriously, the whole MLP and income trust model has been made up and used in the US to raise capital for assets at inflated valueslook at the natural gas trusts that aren't allowed to buy any more assets and have a defined death date on them, and yet people buy them knowing that to get yield and tax write offs. They get crazy high valuations to buy assets that spin out yield. I'm glad to see these short sellers are out supporting the little guy here by taking on The Establishment on this one J. It's like calling Philip Morris bad because they make cigarettes. This is what Investment Bankers docreate financial structures that can get high valuations and they can get lots of fees. Like anything else in the markets, you have to figure out what The Game is, figure out who is going to win and get on their side. 4. Golar management has done suspiciously good trading in their own accounts in the subsidiaries of GLNG over time. That could be true. Golar management aren't perfect, and they're not virgins either. Fredriksen made his billions shipping Iranian oil during the Iran-Iraq war, and was all but caught red-handed in an insurance scandal in 1985he settled out of court. I am aware Fredriksen's other company, Frontline, (FRO-NYSE) was in very poor financial shape after lots of dividends were paid out. The only people ever charged in the US for speculating on oil derivatives with the intent of manipulating the oil price worked for Fredriksen. 5. Day rates for LNG carriers are too volatile to model forward, but they're sure that the current $137,000 a day won't hold. They think $80,000 is more realistic. Are they right? We won't know until 2014. Oh, and the sell side analysts are too optimistic. Like that's never happened before. Lastly, the timing of this Pandora's Box report was impeccable. The company does have a bit of egg on their face as they all but promised an FSRU order on their conference call in late 2011 and couldn't deliver. I think the stock was in a holding pattern until they got one of those contracts (they are now bidding on at least 3) or were able to announce some longer term deals on their other LNG carrier ships. Here's my bottom line on this report: It's not the bone-crushing research on a scam or fraud that a group like Muddy Waters puts out. The other companies targeted on Pandora's Box website are Hong Kong listed. The real risks here with this stock in my mind are: 1. Market valuation is high, yes, but so is growth in cash flow. 2. Fundamentalsgrowth in global liquefaction capacity is delayed to the point where, in 2014 when the 64 new ships arrive, there is not enough LNG to keep them all busy. The best research I see (which, by the way, is from a professional buyside research firm, not a sell side.) Now, having said all this, I also have to deal with reality. And the reality is the stock. In my updated report, I outlined everything I could tell you about the company and the industry. They have lots of POTENTIAL CATALYSTSparticularly new LNG carrier contracts.

But the market changes every day and this report could change the market on this stock until the next piece of good news comes. The stock chart was very clear after a double top, $40/share must hold or the stock is going lower. The 200 dma is $37.91. If the stock dips below that level for more than 2 days I am likely a seller and will wait for the stock to recycle, or re-purchase the stock on the back of a positive news release. (How the market treats the next bit of good news will say a lot about where the stock is going near-to-medium term. If it sells off or stays flat on the next bit of good news, that's not a good sign.)

OGIB BULLETIN # 88 FEBRUARY 12, 2012 GOLAR LNG (GLNG-NASD)

Golar has had two positive happenings since my last updateand that has shown up in the stock price. It has jumped from $41 back up to near $48, it's all time high, in a short period of time. It's 66% owned subsidiary, Golar LNG Partners, L.P. (GMLP) announced a quarterly distribution of $0.43 per unit or $1.72 annualizedwhich was an increase over last quarter. So that should mean GLNG will have room to increase their dividend. Then Golar announced two MORE newbuilds with shipbuilder Hyundai; to be delivered in Q3 and Q4 of 2014. The cost is $200 million each, and they have new tri-fuel diesel electric engines. These new engines are more fuel efficient and have lower emission levels. So Golar now has 11 newbuilds on order, plus they are bringing two more into service. The LNG shipping market is very tight right now, with NO spare capacity. There is only one more ship to be delivered in 2012, and then just 22 in 2013. The 25 newbuilds in 2014 that come online (almost all of them in the second half of the year) are barely expected to keep up with the new LNG supply coming out of Australia and Papua New Guinea (PNG). This means day rates for LNG ships should continue to be very strong see Golar's last contract at $137,000 a day. Just as a reminder, operating costs on these ships is about $14,000 a day, making for a gross profit of 90%. Golar is the only shipper with large available capacity able to capture the tsunami in dayrates, having 15 uncommitted vessels (5 in 2012, 5 in 2013 and 5 in 2014). One analyst has a sensitivity analysis that shows if those ships get $140,000 a day, and the market attaches an 11x multiple (and with those profit margins they should...at least), that equals an $81.70 stock price in two years. And that doesn't include any FSRUs. While the company did make mention of a likely FSRU contract in the last quarterly call, no

news has been forthcoming and I'm not sure if that's why the stock had such a dramatic drop from $48 41 a month ago. Golar is expected to announce its next quarter this coming week, with consensus EBITDA of US$57 million. Most analysts now have price targets ranging from $63 - $98. None of the analysts are talking about the $2 billion plus in debt the company has, but when I get a better handle on that myself I will report back.

OGIB BULLETIN # 153 MAY 29, 2012 GOLAR LNG (GLNG-NASD)

I bought 500 shares of Golar LNG (GLNG-NASD) this morning at $35.02. I actually want to buy 1000 shares total, but Im going to wait until I see the next catalyst which is the sister (daughter?) company Golar LNG Partners (GMLP-NASD) raising $800 million and buying the FSRU Khannur from GLNG. When that happens, I expect to see a 5 cent a quarter increase in the dividendpossibly more. Im thinking this will happen within 2 weeks. GMLP has already filed the financing documents with the SEC, and I expect all these transactions financing, acquisition of Khannur and dividend increaseto be announced all at once. In this market where confusion is the norm and old rules of trading dont apply, my theory is own your favourite stories, just own less of them so that you dont lose any sleep. And I was out of the market on Golar; I want to own it.

OGIB BULLETIN # 90 APRIL 4, 2012 GOLAR LNG (GLNG-NASD)

As a small cap, high valuation NASDAQ stock, I would expect Golar to be down, or at least more volatile, than it is doing. Its holding in well at $40, skimming along its 200 day moving average (dma). That could be because two FSRU awards are expected in April, and Golar is in the running for both. One is in Indonesia, and Golar is one of two bidders left. The other will awarded by Valero for an FSRU in the Caribbean island of Aruba, just off Venezuela. Golar is one of three bidders left. Golar does need to show the market it can win FSRU contracts in a newly competitive field especially after all but promising one last quarter and not delivering. LNG carrier contracts are

actually worthmore money nowthe latest one by Stena was for $150,000 a day for three years. But FSRUs are for a much longer term, often 10-20 years, and will form the backbone of the dividend policy chairman John Fredriksen wants to continually increase. So its tough to say if the market would treat Golar losing both of these as a binary event, causing a big drop in the stock (10-20%) or as a yawn. The reality is they have several more LNG ships coming off contracts this year and will be able to renew them at much higher rates, so they do have bullets in their arsenal. But as stocks swoon into a late April low any bad news could mean the stock is treated badly. Just be aware. (Nobody said it was going to be easy.)

OGIB BULLETIN # 86: JANUARY 22, 2012 GOLAR LNG (GLNG-NASD)

Golar announced that one its ships, the Golar Arctic, had signed a 3 year contract with a Japanese firm for three years. The $45 million annual EBITDA they announced in the news release equates to a day rate of $137,000double the rate of just one year ago, but not quite the $150,000 + a day I hear in the news sometimes. One analyst told me the company gave up $12,000 a day for the security of a three year contract. Golar has about 25% of the spare LNG capacity in the world right now and is considered the "swing" player who basically gets to decide prices. According to one shipping broker, Golar is targeting a spot rental rate of $200,000 per day. Time will tell. Sell side analyst reports are (of course...;-)) still see a very tight LNG shipping market through to 2015 and even 2018. And should the USA end up being a new source of global supply, then it's to 2019 for a tight market. The highest analyst target I see for Golar on The Street is $98. As a side note, Golar's 66% owned subsidiary, Golar LNG Partners (GMLP-NASD) announced some changes in its contract to Brazil's Petrobrasand one of them was location. They are moving their FSRU Floating Storage and Regasification Unit750 miles or 1200 km from Riode Janeiro to Bahia. FSRUs are floating LNG terminals that cost 15% of what a land based one does. The point is, they're movable, portable etc.land based ones are not. Cost and flexibility are two big reasons why FSRUs are the future in natural gas, and natural gas is the future fuel of the world they say. Golar is the world leader in FSRUs.

OGIB BULLETIN # 84: DECEMBER 2, 2012 GOLAR LNG (GLNG-NASD)

This is one of my favourite stories right now, and whenever there is something new on Golar I want to write about it firstbecause this company is just plain FUN to write about. We are witnessing the birth of a new global industry nownatural gasand the LNG shippers like Golar are on the front line of the investment opportunity. Natural gas will no longer be a regional or continental market. Golar is an LNG shipping company with very high margins, and I urge all new subscribers to use the alphabetical index to read all that I have written on this company. Their Q3 financial numbers came in roughly to just above where The Street expected, with near perfect fleet utilization and lower costs combining to create a revenue jump of81% over Q2 2011 to $77 million. Expenses also dropped 22%, so their cash flow, or EBITDA, was $56 million. LNG shipping is the ONLY segment of the shipping market that is not oversupplied in fact, there are basically NO LNG tankers not booked now. And LNG demand continues to increase. What was most interesting to me in their quarterly was their language around FSRUs Floating Storage and Regasification Units. These are the ships that convert the LNG back into regular dry methane gas that we use in our homes. They sit offshore just over the horizon (where the greenies can't see them ;-)) and only cost $300 million, vs $2 billion PLUS for a new land based LNG terminal. FSRUs are the future. Golar said they had been shortlisted for three contracts, and that they had decided to change one of their new LNG ship builds into an FSRU, (Samsung in Korea is the shipbuilder.) as they had the right to do under the contract. Now, history says that when Golar uses the word "shortlisted" that means they have been chosen as the successful bidder, and are now just negotiating on price. Because of all this, I am expecting at least one FSRU order here in the short term. Management said as much on the conference call. As a reference, FSRUs have a day rate of roughly $145,000 per day, versus current day rates of $125K + for an LNG carrier. FSRU's have operating costs per day of $17K- $20K per day, and an LNG carrier has costs of $11K-$14K/day. That's what I call gross profit margins! LNG carrier day rates are expected to continue to go higher for a few reasons. One analyst reported that in the past, the LNG tankers have been paid as much as 17% of the value of their LNG cargo for delivering it. Today that's about 14%, and they claim the difference between those two numbers implies a freight rate of $170K/day. The other reason is obviously supply and demand. While there are 58 new LNG tankers coming online between Jan 1 2013 and Dec 31 2014, there is enough new supply coming

onstreamnotably from Australiathat the industry will be able to absorb that. The three main LNG shipbuilders are Korean Samsung, Daewoo and Hyundai, and combined they can produce roughly 40 new ships a year. So while shipping is a boom and bust cycle (look at the stock chart of Chairman John Fredriksen's other big shipperFrontline FRO:NYSEOUCH!!) I think this industry is safe from a HUGE glut until 2015 or better. And in the meantime, day rates are expected to, overall, average $125K/day or slightly better. Golar has 6 new ships coming onstream during that time, and I expect them to win several FSRU bids during this time as well. Golar is one of the few companies that has ships coming available in the near term, so they should be able to take advantage of the new higher day rates in 2012. In fact, management has said they may only take short term contracts through the next year to see how high rates go. Rising dayrates and increased fleet size have one brokerage firm, Arctic Securities, suggesting revenue, cash flow and income as follows for the next three years: Revenues for 2011, 12, and 13 of $296 M, $406 M, and $550 M EBITDAs for 2011, 12, and 13 of $202 M, $315 M and $437 M Net Income for 2011, 12, and 13 of $54 M, $172 M and $257 M Most analysts now have their targets in the $54 range, or 320 Norwegian kroner. (Because Chairman John Fredriksen is Norwegian, several Scandinavian brokerage firms cover Golar.) I want to quickly ensure you understand the relationship of Golar to its daughter company, Golar Partners (symbol GMLP-NASD, vs. Golar LNG which is GLNG-NASD) Golar-GLNG gets a long term contract and sells the ship to Golar Partners GMLP. GLNG owns 65% of GMLP. Those LNG tankers get sold down to GMLP for...well, the last one was $330 million. GLNG uses that money to pay for new ships and for dividends. GMLP pays that moneyoften a 6-9x multiple of EBITDAup to GLNG, which is a good deal for GMLP as those shares are valued at a 6% dividend yield, which works out to a 12X to 14X EBITDA multiple instantly accretive! GMLP then receives the revenue from that ship. GMLP or GLNG could raise the money to help pay for new shipbuildswhichever has the highest valuation (and therefore the cheapest capital on an equity raise). In other miscellaneous news on Golar, Value-Line just picked up coverage, saying the company would have strong earnings growth before mid-decade, but valuation was currently high. Value Line is a well known service and Golar's inclusion there will help the stock's exposure. On Nov 28, The South China Morning Post article said China could see a surge in its use of liquefied natural gas, one that will require a massive investment in new terminals and gascarrying ships to import the energy source. China only uses LNG now for 4% of its energy use, and coal=70%. LNG usage could be 20%

or more, which the story said would mean 80-100 additional LNG carriers would be needed just for China. So of course, all this sounds wildly bullish and it is. That's why I keep adding to the position in small lots whenever I can. I think the dividend potential here is hugeand so are the capital gains. In a few lines down I will explain how a low dividend yield equals a high stock price. But before that, please remember that Golar has $1.2 billion in debt and will at one point in the next few years have almost $2 billion. Despite having both hard assets (the ships) and the cash flow to back all that up, it would still be inconvenient, in this era of sudden liquidity crunches, for those loans to be called. Now I don't know the terms of the debt, but management didn't respond to my request for info on who the banks were that owned the debt. It might not be an issue. But when I'm this keen on a story I look for anything to be cautious about so I don't get carried away. The stock is now trading at a yield of 2.75%. I get that by dividing the dividend by the share price - $1.20/$43.60. When I bought the stock last year it had a yield of 6.67% - $15 stock with $1 dividend. 1/15=0.06667. I believe one of the main reasons the market prices in a lower yield in a stock is because it likes the growth prospects of the stock; it believes dividends will increase. The market sees sustained dividend increases coming in the next several years from both LNG carriers and FSRU. A low yield creates a more highly levered stock. It means for every $1 increase in dividends, the stock will go up 1/.0275=$36.36 per share. Compare that to a stock yielding 6%, where $1 increase in dividends will increase the stock 1/0.06=$16.67. As soon as the market senses the growth in the company is slowing and dividend increases will not be as big or as regular, the market will trade the stock at a higher yield. So even though business may still be great and even still improving, the stock could stay flat for a year as the market re-prices the stock via the yield. IMHO, I don't need to do that for 12-18 months, barring any major event in the natural gas/LNG markets.

OGIB BULLETIN # 107: OCTOBER 27, 2011 GOLAR LNG (GLNG-NASD)

I bought 500 more shares of Golar (GLNG-NASD) today at $40.78 as the stock broke out to new highs, on the back of sister company GMLP-NASD increasing its dividend to 40 cents per quarter.

GLNG owns a controlling interest in GMLP, so when GMLP ups their dividend, GLNG will as well. Shipping billionaire John Fredriksen owns 46% of Golar and he loves to pay himself dividends. While there is a strong argument today everybody should be a SELLING, NOT BUYING, I have had some of my best trades on breakouts. I am drawn to this stock. They are not dependent on the commodity boom or on China to continue growing very quickly and profitably. LNG is the clean cheap fuel of choice for the world right now and the market is willing to pay for huge safe growth that is not tied to the China/commodity story. And unlike my juniors, I don't watch these stocks too closely (I have been guilty of being too close to the screen on some tradesand a little too bearish!). And right now Golar is one of the two most profitable companies in my portfolio. I believe Golar can be $100-$120 stock in 2 years, or even more. The LNG shipping market continues to be very tight; ZERO extra capacity. And day rates are rising sharply. Their latest deal, chartering their GIMLI vessel out for THREE years usually contracts are one year at roughly $125,000 a day. In the last 15 months, day rates for LNG tankers have more than tripled from $35,000 a day to $90,000 to now $125,000/day. Analysts estimated operating costs on these LNG tankers of $14,000making for a gross margin of 89%.

OGIB BULLETIN # 98: SEPTEMBER 27, 2011 GOLAR LNG (GLNG-NASD)

Today I bought 500 shares of Golar (GLNG-NASD) at $33.47. The reason for the purchase is that I now believe the low of the market has been set for a while, and the market will be more positive moving forward. While the stock is technically trading in no mans land still, it's a stock I want to own more of, and if the market goes up it should take Golar with it. Also, they do have several bids out on new FSRU contracts and an announcement on any of them would be a boost to the stock. One research report I have read is suggesting this stock is $100 in 3-4 years based on increasing dividends as the eight new LNG tankers it has ordered. This fits my theme of continually buying small positions in good companies at market lows. Don't overcommit too much capital at any one time...just dollar cost average into my favourites in a small way. What I really like about this company is that management puts their money where their mouth isthey own almost half the stock. They want the company to perform and pay out their free cash flow in dividends.

Chairman John Fredriksen has done this with all his companies. I wish all management teams were like this! Sadly, many companies prefer share buybacks that do more to help management stock options than shareholder wallets. I believe yield will be the largest determinant on price for this stock moving forward. If the stock doesn't move through $34 on some volume, and staythere, I may trade the stock out but I want to be long this stock.

OGIB BULLETIN # 61: JUNE 10, 2011 GOLAR LNG (GLNG-NASD)

Golar announced its Q1 2011 numbers, and made some of the best information both public, and easy to understand a welcome change! I'll go through the numbers first and explain their new structure and strategy second. Overall revenues were $67.5 million, up from $64.6 million Q4 2010, despite lower ship utilization. That's because day rates went from $74,206 to $80,694 during the quarter, and they said rates are now over $90,000 a day for LNG tankers. Net income was $16.3 million, more than three times Q4 2010 net income of $4.1 million. Golar Commodities their trading arm - continues to lose money - $3.6 million in Q1. They trade physical cargos and financial derivatives the first makes money, the second one loses money. They did give guidance that some physical cargo trades will show a profit in Q2. They announced a continued 25 cents a share dividend for this quarter and that is actually an overall increase in cash as there is now 79.8 million shares outstanding after the complete takeover of Golar Energy, which was listed on the Oslo Stock Exchange only. That means I now have clarity on share structure and dividend. Plus, theirholding in the new GMLP-NASD listed Golar LNG Partners was worth $714 million and Golar expects to bring up $10 million per quarter from GMLP into Golar (GLNG) in GMLP dividends. GLNG owns 67% of GMLP the public owns the rest, which it bought on the IPO in Q2 at $22.50. Now that Golar (GLNG) has absorbed Golar Energy, they have decided to change strategy a bit. Golar Energy was going to do short term, spot business in the LNG market. But then the tight tanker market while good for GLNG's day rates made life hell for Golar Energy. There was no product! All the ships were spoken for. So now Golar (GLNG) will do the short term business, and the newly listed Golar (GMLP) will do both the long term LNG tanker contracts AND ALL THE FSRU business Floating Storage and Regasification Units. These are the ships that turn Liquid Natural Gas (LNG) back into regular dry natural gas (methane) that you and I can heat our homes with. So while Golar (GLNG) used to be the long term pubco, it's now the short term one. But Chairman John Frederiksen still owns 46% of Golar (GLNG) and GLNG owns 67% of GMLP, so he still controls everything through GLNG, so that's where I will keep my money.

In giving guidance, management said they expect to hear back on at least three and possibly five FSRU contracts by the end of 2011, on which they have submitted bids. (Golar has never lost an FSRU contract that got completed.) They also intimated they were lucky to get Samsung, the Korean conglomerate, to build them 6 new LNG tankers for 2013 and 2014 as shipbuilding capacity is also very tight globally. 35 new LNG tankers are on order worldwide now, 16 of which were just ordered since January. They should be coming onstream just as the huge Australian LNG plants open. Australia will probably be a bigger LNG exporter than even Qatar then. But for the next 2-3 years, LNG tankers will enjoy a very tight market, and strong pricing power. In closing, here are the two paragraphs that intrigued me most from their quarterly. Subscribers should remember this is a very exciting time for this industry as it is making LNG a true global market for the first time ever in 2011. It's kind of like horizontal drilling and fracking they have all been around for awhile now, but are just hitting their stride and being adopted by the masses, creating BIG opportunities for investors and I have already benefited this as Golar LNG has doubled for me. "The next wave of midstream LNG solutions continues to be developed inside Golar. Floating LNG to power vessel, floating storage and small scale LNG are all on Golar's drawing board and the Company anticipates they could all add significantly to our growth in the future. It is the Company's target to conclude firm business for at least one of these projects before the end of the year. "The Board also sees several other interesting opportunities for further growth. Shareholders should anticipate continued high investment activities in the coming quarters." Very interesting. I love following this company; this industry. It's new, it's global.

OGIB BULLETIN # 59: MAY 28, 2011 GOLAR LNG (GLNG-NASD)

On May 17, Morgan Stanley initiated coverage on Golar with a $34 target. They had a separate bullish target of $65 which could happen if: -LNG day rates go to $120,000 a day, up from the current $85K-$90K (which is up from $30K nine months ago). This is the price that the Liquid Natural Gas shippers charge their clients -Golar converts its current 3 idle LNG carriers into FSRUs (Floating Storage andRegasification Units basically offshore natural gas terminals) and obviously get contracts for them -China adopts natural gas as one of their main sources of fuel its now only about 4% compared to 27% in US (its a resource story so we must have the China angle covered).

Nothing they said about the macro LNG shipping or production situation has changed from when I did my initial report in January, though one statistic surprised me global LNG shipping grew 21% in 2010. That is BIG growth. Other than that, its a tight shipping market, demand for gas will outpace the shipping industrys ability to keep up (4% vs 2.5% growth), and almost all the production coming onstream in the next decade most of it from Western Australia is already spoken for. Remember, Golar is a yield play on LOW global gas prices. If gas prices are low, then LNG will supplant oil as the fuel of choice and the shippers will keep busy transporting it around the globe. For new subscribers, the Japanese earthquake transformed the global investment communitys opinion of LNG they voted with their wallets, saying uranium and nuclear were out and LNG was in. LNG would become a much greater part of the worlds total fuel much more quickly than before. And being as Golar is the only US listed company with available capacity that could take advantage of fast rising spot prices for shipping rates, the market has bought it up. Golar is highly levered to global LNG shipping rates Morgan Stanley said that every $10,000 a day change in day rates meant a $7/share change in the value of the stock. Morgan Stanley said the $34 target price represents a 3.5% yield. When I bought the stock it was a 6%+ yield, and I dreamed that one day the market would take it to a 4% yield. Part of me wants to buy this stock back, for several reasons 1. Stock chart looks goodmaking me have some seller's remorse... 2. It is now the Go-to institutional stock for this sector. But the market is building in a lot of future growth at this price already. The other thing to keep in mind is that Morgan Stanley said FIVE new contracts for FSRUs are expected to be awarded in 2011. FSRUs are more profitable than LNGcarriers theyarealreadyat$120,000aday. In my initial report I wrote Each ship will create about 30 cents a share in dividends, which at the current 6% yield is good for $5 per share on the stock (0.3 / 0.06). A 4% yield which is where I think this dividend is going - would imply a stock price increase of $7.50/share. So the market knows, or strongly believes assuming that the ship is operational on time, that an extra 30 cents a year is coming in 2012 dividends. At $1.20 annual dividend, the stock is now trading at 3.8% yield, so if the market is willing to keep the yield under 4% - and I would suggest in the post-Japan-earthquake world it will - any new FSRU contract win could theoretically cause the market to add $7.50 per share to the stock. I would also say that Golar, now in a "honeymoon" phase with investors, would likely get a lot of credit for that very quickly in its stock. Now, that $7.50 was under the old share structure and now that they have bought most of Golar Energy, I dont know exactly how many shares Golar has out now. Nor has the

company given clear guidance on the dividend policy between Golar LNG and the new Golar GMLP, so valuing the company is a moving target now you can only believe that Chairman John Fredricksen owns 46% of Golar and he has a great track record in building dividends. His interests are aligned with mine, as a shareholder. So reading that over, it makes sense I should buy the stock back as it has the 4% yield I expected it to have, the market now loves the story as I expected it to, so it makes sense the stock will hang around this price level until the market smells a new catalyst either a new FSRU contract or having its 3 ships come out of drydock and take advantage of high spot day rates in the LNG market. Another potential reason the stock is showing so much strength is whats talked about in this Reuters article http://www.calgaryherald.com/Desperate+majors+seek+scarce+tankers/4841901/story.html The article was based on an interview with Ulf Ryder, CEO of privately-held Stena Bulk. Stena acquired three LNG carriers from Taiwans TMT in a deal announced last week and since then their phones wont stop ringing, according to their CEO. Mr. Ryder went on to say that I have never, in 40 years in tanker markets, had the pleasure of an oil company executive calling me up to say they are interested in chartering a ship." He goes on to say that he has received calls from all the majors and turned down offers of $105,000 to $110,000 per day for up to two year charters in the hopes of securing something closer to $150,000 per day. A $150,000 day rate could generate $50 million in annual EBITDA for an LNG carrier. But in one sense I dont like buying back stock I sold at a big profit. Its my money now. And I generally dont do well buying back stocks I've sold for big gains. I think Im going to be patient, but ready to pounce if I smell something in the chart or on The Street.

OGIB BULLETIN # 76: MAY 3, 2011 GOLAR LNG (GLNG-NASD)

I sold 1000 shares - half - of my Golar position today at $30.56, for a gain of 101% in just five months. This trade is strictly due to the action in the chart. The stock has gone more vertical more quickly than I ever expected (yeah!) and IMHO is now trading well beyond its fundamentals. I will be looking to buy this back or even increase my position over time. But I have been too slow to monetize some quick profits that I've been lucky to have on several stocks in my portfolio (Bengal, Toreador). Management has done a great job in capitalizing on the new attitude towards LNG in the wake of the Japanese earthquake - nuclear's pain is LNG's gain. The stock is now trading at a 4% yield - for 2012 - based on $1.30 dividend next year.

OGIB BULLETIN # 45: FEBRUARY 9, 2011 GOLAR LNG (GLNG-NASD)

To me, the best stocks have a story so compelling and simple that I dont have to spend huge amounts of time analyzing its performance. GasFrac is the perfect example of that kind of stock. Its propane fracking is unique to them and it works so much better than other methods the customer gets it for free. This next stock pick of mine Golar LNG (GLNG-NASD) is that type of stock. Its simple, its unique, its management has a remarkable track record in creating shareholder wealth and its the world leader of a big trend that should last for a decade or more the increasing use of natural gas as an energy source by the developing world. (LNG=Liquid Natural Gas) Golar is more than an LNG shipping company, but some investors may visualize it as a pipeline company the lower the cost of gas, the more economical it is to ship/transport. Supply from countries like Qatar is increasing dramatically, and usage by countries like Korea, Japan, China and Brazil is also increasing dramatically. The global LNG fleet including Golar - is the pipeline. For the first time ever, there is a real GLOBAL spot market in LNG as supply, demand and the cost and technology of logistically moving it and docking have improved. It is projected to increase from 210 billion cubic metres (bcm) in 2008 to 500 bcm in 2035. The share of LNG in total natural gas trade versus pipelines is projected to grow from 31% in 2008 to 42% in 2035. Golars BIG edge is that it is the first company in the world to have successfully retrofitted a LNG tanker to a vessel called an FSRU Floating Storage and Regasification Unit. This is where the compressed LNG is put back into usable form, out in the ocean, and pumped into gas lines onshore. Ill explain the power and profitability of being the world leader in this. Management here is also a very clear bonus. John Fredriksen is worth billions, and made almost all of it from shipping. He owns 46% of Golar stock and intends to increase dividends as fast and as much as he can. He has a great track record in doing this. Consider these two news items just from TODAY New Jersey governor vetoes a huge, 65 acre offshore LNG terminal, and Israel announces it is building a new LNG import facility using FSRU. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7055279. Trading Symbols: Share Price: Basic Shares Outstanding: Mgmt Ownership Market Cap (Basic): Net DEBT Enterprise Value (EV): GLNG-NASD $18.39 (my price $15.42) 67.58 million 46.18 % $1.242 billion $412 million $1.6 billion THE LNG SHIPPING BUSINESS (abbreviated version) (most of this info comes from the website of Golars competitor Teekay LNG Partners (TGPNYSE) I have paraphrased most of it)

Liquefied Natural Gas Liquefied natural gas (LNG) is a cheap way of moving natural gas overseas by super-cooling it to a liquid form, reducing its volume by 1/600th of its gaseous state. The LNG shipping industry is growing rapidly with global demand for LNG expected to increase by more than 50% by 2030. Shipping Natural Gas Shipping natural gas includes the following three key stages: Liquefaction To transform natural gas into a liquid state, it is super-cooled to a temperature of approximately - 260 degrees Fahrenheit (-163 degrees Celsius). This process takes place at a liquefaction facility. This super-reduced volume allows LNG to be transported around the world economically, particularly to areas that dont have modern pipeline infrastructure. Shipping LNG is shipped in double-hulled ships. LNG carriers transport LNG between liquefaction facilities and import terminals - which cost $1.5 Billion at least - or floating storage regasification units (FSRU) - which can cost $265 million. (starting to get the idea...???) The double-hulled ships insulates the LNG so it stays in liquid form. LNG that evaporates during the voyage and converts to natural gas (called boil-off) is used as fuel to help propel the carrier. Regasification At regasification facilities, the LNG is returned to its gaseous state. Such facilities have been located on shore for many years but more recently there has been a growing demand for floating regasification units (FSRUs) on which the LNG can be regasified. Floating regasification allows countries who want to import LNG to gain fast and relatively cheap access to global LNG supply. Its advantages include: Ability to fast track regasification access for new LNG importers (Dramatically-ks) Lower upfront capital investment compared to onshore facilities Can be relocated if demand is short term and/or seasonal Allows customers in new markets to gain confidence in LNG Good solution for when availability of land is limited

 Large pool of potential FSRU conversion candidates in the fleet (these are old LNG carriers that can be retrofitted into FSRUs very cheaply-ks) A Growing Global Market Total demand for natural gas is projected to increase from 3,149 billion cubic meters (bcm) in 2008 to 4,535 bcm in 2035. This is a 44% increase over the period at an average annual growth rate of 1.4%. Inter-regional natural gas trade is projected to increase from 670 bcm in 2008 to 1,187 bcm in 2035. This is a 77% increase over the period at an annual average rate of 2.1%. Trade rises much faster than demand due to the pronounced geographical mismatch between regions of production and consumption. Japan, Korea and India are the biggest Asian importers. In 2009 these countries received about 55 percent of total global LNG trade. Spain, France and the US are the Atlantic Basin's biggest importers closely followed by the UK. China is currently the worlds ninth largest LNG importer and is expected to become a major buyer of LNG in the future. Qatar, Malaysia and Indonesia are the biggest producers accounting for 44% of all LNG exports in 2009. Other major producers include Nigeria, Algeria, Australia and Trinidad & Tobago. The pattern of global LNG trade is expected to change in the future. Up to now LNG trade has been concentrated in the Asia-Pacific region with gas sourced from Asia and the Middle East. Although this market will continue to expand, LNG demand from the Atlantic basin is also expected to increase. As of June 2010 global liquefaction capacity totaled around 360 bcm per year. An additional 77 bcm per year is under construction while a further 500 bcm per year is currently in the planning stage. Australia, Nigeria, Iran and Russia account for 77% of the planned new production capacity, though not all of these projects are expected to come online due to political and economic barriers. The global LNG fleet is growing rapidly to meet this increasing supply and demand. As of November 2010 there were 360 LNG vessels in service with a further 24 vessels on order. OK, there you go a bit of history and industry trends, major players etc. - LNG Shipping 101. The only other important item to know is that historically, LNG trades at 13% of Brent Crude. Where the industry is at right now is...that every single LNG ship in the world that can be working, is now working. So what that means is that the day rate for these ships is now going up. Back in 2007 day rates for LNG tankers were as high as USD$110,000 a day; they went down to $30,000 after the crash of 2008, and up until late this summer were sitting at USD$47,000 then the market for LNG tankers got tight and have since shot up to $70,000. Golar estimates they need a day rate of $33,000 to break even. This chart from last November (their latest; overall info on the Golar website of the company

and the industry is not good) shows two things the axis on the left is the day rate in thousands of dollars per day, which is the blue line that is now on the rise and has broken a steady four year downtrend. The right axis is the number of vessels available for hire to transport LNG see all those vertical lines disappearing into the bottom right of the chart that means there are almost none left. Thats why day rates are now moving up sharply. This is a major trend that should last for many years. Global LNG demand is expected to increase 44% in the next 25 years. The percentage of shipping LNG vs pipeline is expected to increase. With all the shale gas being discovered in the world, the price of natural gas may well stay low enough compared to oil that will make LNG shipping economic for a long time. So day rates for LNG carriers should continue to be highly profitable. Golar has 7.5 LNG tankers in its fleet. The world is just in the infancy of a truly global LNG market with a big increase in long term contracts and active spot markets thanks to low gas prices and new technology. Nobody knows now what the nuances of this market will be in the future that will create big opportunities for investors, but the trend of a sustained and active LNG shipping market for the next decade or so seems assured to me. Im willing to put my money into that trade. THE COMPETITIVE EDGE - FSRU But like any energy services company, I want to find a company with a big competitive edge, and I think Golar has that. They are the world leader in FSRU projects Floating Storage and Regasification Units. Golar can retrofit an old LNG tanker into an FSRU for anything between $85 to $125 million. NOBODY ELSE HAS DONE THIS. Other companies have built FSRUs from scratch, which can cost up to $300 million. This compares to a price tag of more than $1.5 billion for an onshore LNG import terminal. For developing nations who dont have the cash, FSRUs are an obvious, cheap and safe way to get gas infrastructure built for the cleanest burning hydrocarbon money can buy. For the developed world, FSRUs get rid of the NIMBY syndrome NotInMyBackYard. Who wants an LNG terminal beside them that could, if it explodes (terrorism), flatten the earth for a mile or two? These ships sit 10-12 miles offshore just over the horizon and send the gas onshore via a flexible underwater pipe. The other big plus for developed countries is that FSRUs can be MOVED. Countries like Brazil that see themselves significantly growing natural gas production over the next decade love FSRUs because they can lease them to someone else at any time, or simply hand the keys back to Golar later. The FSRU industry is just in its infancy and I expect it to grow substantially over the coming

20 years for the reasons I just outlined. Golar now has three FSRUs that are operational two in Brazil and one in Dubai. The cash flow from these ships, along with two of their ships that are in long-term charter contracts, covers 100% of the current $1/share annual dividend, which is paid 25 cents quarterly. These ships have 10 year contracts which guarantee this dividend. And Golar has just won a bid to do an FSRU in Indonesia (the first FSRU in South-east Asia, where most global interest is centred for FSRUs), which will be operational by year end 2011. This is a significant contract to Golar because majority of FSRU interests come from that region. Each ship will create about 30 cents a share in dividends, which at the current 6% yield is good for $5 per share on the stock (0.3 / 0.06). A 4% yield which is where I think this dividend is going - would imply a stock price increase of $7.50/share. So the market knows, or strongly believes assuming that the ship is operational on time, that an extra 30 cents a year is coming in 2012 dividends. GOLAR HAS NEVER LOST A BID ON AN FSRU CONTRACT that made it into production. They are the acknowledged world leader in this. One of my favourite lines for subscribers is that when making financial projections, I like to keep one foot firmly planted in the air. So, Golar is now working on 10-12 FSRU bids around the world. If they win half, or six, that would add $1.80 in dividends, which in addition to the $1.30 the company will have in 2012, gives investors a total of $3.10 in 3 years or so, and at a 4% yield I get a $77.50 stock price. Thats a big IF, but very possible. MANAGEMENT To appreciate this company subscribers should understand what CEO and Chairman John Fredriksen has done in the past. First off, remember he owns 46% of the stock and his partners own more, to the point of just being under 50% in total. So this team is more than committed. He is a rags to riches, Horatio Alger story. Born to a working class family in Norway, he started off as a trainee in a ship brokering company. But he had gumption, and chartered ships to transport oil in the Middle East during the Iran-Iraq wars. Fredriksen has built up the worlds largest oil tanker company - Frontline (FRO-NYSE, $2.2 billion market cap). He has a major stake in SeaDrill (SDRL-NASD; $36) an offshore drilling company. He is worth an estimated $7 billion - $11 billion, give or take. And he loves dividends. He has shown that he is good at managing companies and increasing their dividends. And as long as he owns 46% of GLNG, Im assuming he will continue his policy. FINANCIALS In the first nine months of 2010 Golar has revenue of $180 million, EBITDA of $45 million and just returned to profitability in Q3 with 6 cents a share earnings. For the 9 months of 2010 the loss is 7 cents. The stock has had a good run lately as Q4 is expected to be very strong with

the increase in day rates for shipping. There are a couple items here that investors should take note of: Investors should understand this company uses a lot of debt to finance these ships, but that is against a 10 year contract, AND they must put up restricted cash against each ship so this is not a speculative debt instrument. The financials will show $821 million in debt, but once you subtract the restricted cash against that, ($554 million), there is really only $267 million in net debt (plus there is equity of $1.6 billion in the current ships). This is one of the key pieces of the puzzle that makes GLNG so profitable debt is cheap right now (Golar pays an average 4.89% on its debt) and will create a great ROI from the ships cash flow. One analyst estimated an FSRU will create 4.5x its cost in EBITDA (Earnings Before Interest, Tax, Depreciation and Amortizationthis is roughly equivalent to cash flow) over a 10 year life and when that cost is debt against restricted cash that just gets recycled, the profits are even more lucrative. The second thing is that Golar LNG owns 63% of an Oslo-listed company called Golar Energy (GOLE-Oslo). Golar Energy is more involved in straight LNG spot market. They do short term LNG shipping contracts and act as a feeder for Golar LNG any shorter term contract that turns into a long term one will get sold up to Golar LNG. Fredriksen has said that Golar Energy will need to get financing for its projects on its own, so at one point in the near to medium future its revenue will not be consolidated. Lastly, Golar Energy has a commodity division, Golar Commodities (of course) which is into trading LNG. While this is not core business, they see an opportunity where, when they own the ships, and can have a stronger negotiating position in dealing with customers and contracts. This new part of the business does involve derivative trading and the company did have a loss in this segment in the last quarter. VALUATION The market sees Golar LNG as a dividend play, given Fredriksens background. Every bit of research I read on Golar said that new FSRU contracts would be the main driver for the stock price, with increasing LNG shipping rates being second. As such, analysts are looking for new FSRU contracts to be won, and dividends to be increased, which will increase the stock price. As I mentioned earlier, each ship will create about 30 cents a share in dividends, which at the current 6% yield is good for $5 per share on the stock (0.3 / 0.06). A 4% yield which is where I think this dividend is going, as the market gains more faith in the business - would imply a stock price increase of $7.50/share. So the market knows, or strongly believes assuming that the ship is operational on time, that an extra 30 cents a year is coming in 2012 dividends.

If they can win six new FSRU contracts in the next three years, that would add $1.80 in dividends, which in addition to the $1.30 the company will have in 2012, gives investors a total of $3.10 in 3 years or so, and at a 4% yield I get a $77.50 stock price in 2014. A 6% yield = $51.67/share a triple from my $15.42 cost. CONCLUSION A true, liquid spot market in LNG is now emerging, due to low gas prices and new technology such as FSRUs. Golar LNG is THE world leader in FSRUs, and a (but not THE) leader in LNG transport with 7.5 ships. Management knows the shipping business inside out, as John Fredriksen owns Frontline, the worlds largest oil tanker company. Management also owns 46% + of Golar LNG. This is the right team at the right time. As the rest of the worlds shipping is slowing down (those charts arent pretty), LNG shipping analysts are forecasting a very tight market for several years. Day rates are high and rising. For those investors who want a natural gas play, this is it. Its also a China play, an India play, and a non-US play. And its a play for those who believe natural gas will stay cheaper than oil which at a 6:1 ratio is $16.67/mmcf on $100 oil. The only real negative here is that analysts are calling for the major growth to happen in 2013 and 2014. The stock has had a great run, and once it hits an implied 6% yield on 2012 dividends of $1.30 which is $21.67 the stock could easily stall until they win a new FSRU contract, or LNG shipping rates get and stay over $90,000 a day. I own 2000 shares of Golar at $15.12. OGIB BULLETIN # 59: DECEMBER 21, 2010 GOLAR LNG (GLNG-NASD) AND NOW FOR SOMETHING COMPLETELY DIFFERENT I have bought 2000 shares of Golar LNG, symbol GLNG-NASD at $15.12 today. I am excited about this company I think its going to be a no-brainer for years to come. They ship LNG liquefied natural gas, but they also change LNG to regular gas thats called re- gasification and they do it offshore on a ship they have a Floating Storage and Regasification Unit FSRU. Nobody wants all that high pressure LNG in their backyard so why not have it offshore just over the horizon? The industry is growing quickly, and Golar is the #1 company in the world at this. Petrobras has three Golar FSRU and they are winning most of the contracts around the world in this sector. I will explain more in my full report but management has a large stake in the company and

knows shipping. Management has a track record in growing businesses and dividends. I have been watching this company for 3 months now hoping to buy it cheaper but I dont think its going to happen. $250 million annual revenue, slightly profitable, 65.6 million shares out. Kind regards, Keith Schaefer Publisher, the Oil & Gas Investments Bulletin Ive just shared with you one of my TOP trades of 2011 and 2012. I put my money on the line with my subscribers in finding the best growth stocks in the energy sectors. And there are more portfolio stocks that are enjoying exploration success and being rewarded by the market. Become an Oil & Gas Investments Bulletin subscriber today for 20% off our regular rates (LIMITED TIME OFFER) and feel secure in the value of your investments, and enjoy the profit potential that current subscribers have experienced. Annual subscriptions have a 60-day, 100% money back guarantee. CLICK HERE TO ACCESS OUR DISCOUNTED RATES

About the Oil & Gas Investments Bulletin

Keith Schaefer, Editor and Publisher of Oil & Gas Investments Bulletin, writes on oil and natural gas markets - and stocks - in a simple, easy to read manner. He uses research reports and trade magazines, interviews industry experts and executives to identify trends in the oil and gas industry - and writes about them in a public blog. He then finds investments that make money based on that information. Company information is shared only with Oil & Gas Investments subscribers in the Bulletin - they see what hes buying, when he buys it, and why. The Oil & Gas Investments Bulletin subscription service finds, researches and profiles fast growing oil and gas companies. The Oil and Gas Investments Bulletin is a completely independent service, written to build subscriber loyalty. Companies do not pay in any way to be profiled. For more information about the Bulletin or to subscribe, please visit: www.oilandgas-investments.com.