LNGL's Australian Securities Exchange stock soared 15.7% after gaining much as 20.5% intraday - icing on the cake considering it has rocketed from less than 30c at the start of last year to Friday's close of $4.80.
Tim Dohrmann, an analyst at share tipping service Australian Small-Cap Investigator, said the major upswing had rewarded shareholders with "outrageous gains" of 1527%.
Friday's gains followed a market-sensitive announcement that morning which revealed LNGL was getting closer to signing a binding tolling agreement for its Magnolia LNG project in Louisiana.
LNGL said Meridian Holdings had notified it of its intentions to progress a 20-year liquefaction tolling agreement with LNGL's 100% owned subsidiary, Magnolia, for 2MMtpa after having already signed a 20-year gas sales agreement with E.On Global Commodities SE.
Magnolia will comprise four liquefaction trains, each capable of producing up to 2MMtpa of LNG.
Dohrmann, whose share-tipping service tagged LNGL's stock as "buy" long before it started its meteoric rise, says the deal "significantly de-risks" LNGL's Magnolia project and "boosts confidence that Magnolia will operate to its full production capacity when it goes live in 2018".
"LNGL appears to be executing this ambitious project perfectly. That's a rarity in today's energy industry, and it looks like there's plenty of life in this story yet," the analyst said.
"Investors considering the stock now should remember that LNGL won't process its first gas for another several years. There's plenty of scope for investors to bag even bigger profits from this star performer — but the story will take time to play out."
Motley Fool analyst Ryan Newman shares Dohrmann's bullish sentiment that the LNGL story has a long way run, adding that this means inherent risks are attached.
"Investors need to remember that [LNGL's] Magnolia project - together with its Bear Head project in Nova Scotia, Canada - are still years away from production while regulatory and operational risks also remain high," he said.
"Exacerbated by the enormous run-up in share price enjoyed by LNGL over the past few months, an investment in the stock today is by no means risk-free.
"However, the pending agreement with Meridian is a huge step in the right direction for LNGL and could be just the beginning of great things to come.
"Investors considering building a position in the company would be wise to take a small bite to begin with, whilst also ensuring they maintain a diversified portfolio."
