"Early drilling results showed the oil portion of the Utica isn’t as porous as some other shale formations and is shallower than its gas-filled areas, meaning it’s harder to get oil to flow through the rock, and there’s less natural pressure to help force it out, said Jerry James, president of Artex Oil Co. in Marietta, Ohio. "
based on the linc announcement. arckaringa shale has similar porosity and about one third of the depth. that means it will be harder to extract oil compare to eagle ford / bakken.
however compare to utica formation arckaringa seems better. in terms of porosity (I haven't do more research).
"Utica acreage can fetch about $1,000 to $8,000 an acre"
arckaringa has 4mil acres, worth around $4Bil with the worst valuation.
"Much still depends on the construction of processing units and pipelines to provide a route to market for Utica production. The pace of drilling has been hindered by a lack of infrastructure that may require a $30 billion investment over three years to build out, said Jack Lafield, CEO of Dallas-based pipeline operator Caiman Energy LLC. "
I wouldn't imagine that arkaringa need that much infrastructure invesment.
Good luck everyone.
DYOR
LNC Price at posting:
$1.88 Sentiment: LT Buy Disclosure: Held
