Arckaringa

fyi guys - lets hope this is the start of something.

Welcome the experienced oil / gas stockholders thoughts.

Gltah.
Linc Energy to comm
ence drilli
ng 103
Billion
BOE
*
Arckaring
a Basin
in South Australia
•
Linc Energy commits to drilling three
(3)
new
wells in 2014 to commence
late July
proving up deeper parts of the Arckaringa
Basin to start the pro
cess of unlocking the
potential
103 Billion Barrels
of oil equivalent (BBOE)
*
in recoverable oil and gas
reserv
es in this unique energy basin.
•
The South Australian Arcka
r
inga
oil basin
is
going to be
a
key focus
and company
driver
for Linc Energy going forward.
Linc Energy Ltd (
SGX:TI6
) (OTCQX: LNCGY)
is pleased to ann
ounce plans to drill three (3) wells
in the Arckaringa
Basin in
South Australia as part of the
next phase of
exploration and
development of
t
his significant asset.
Given the size of the pot
ential resource the Board of Linc
Energy has determined that
the best
option for shareholder value
is
for the Company
to fund the targeted exploration program
to
better define this basin before
the Company
considers
partnering
for pha
se two or three of
development.
This program will be funded
within the Company’s
budget
.
As part of this strategy, Linc Energy
has engaged with Baker Hughes
as
shale experts and
a
dvisors on
this program.
Baker Hughes
has
completed a comprehensive study and produced a
detailed model on the basin on the following:
•
Geo mechanical
model
l
ing;
•
Wellbore stability analysis;
•
Hydraulic fracture design;
•
Prediction of multiphase flow
performance;
•
Simultaneous inversion analysis of seismic data;
•
Optimising w
ell planning an
d design,
and
•
Preliminary development plan to transition the resource
s to reserves
for development.
Conclusions of the study have been used to assist Linc
Energy with
the design of the three well
exploration program to test the deeper more p
rospective parts of the basin.
This
drilling program
is likely to be focused on the Boorthanna
Trough which formed the basis for
the majority of the pros
pective resources
separately
identified by Gustavson Associates and
DeGolyer
and
MacNaughton
as previously announced
.
To date
no previous drilling has
intersected the formations at depth and the results of these wells will be critical to understanding
the basin in detail.
Samples and
core recovered during drilling activity will be sent for analysis of rock layers within
the targeted formations with the most prospective source rock.
Analysis will include:
SGX
Code:
TI6
OTCQX Code: LNCGY
-
2
-
SG
X Announcement continued...
•
Thermal Maturity
–
to
confirm thermal gra
dient projections in
each of the
t
hree
h
oles
;
•
Source Rock
–
to
confirm source rock quality of Stuart Range,
Boorthanna
and pre
-
Permian formations
;
•
Intersection of at least one of the
c
onventional oil and gas targets identified by Gustavson
as a prospective resource;
•
Logging of all core holes;
an
d
•
Open hole
well testing
if
moveable hydrocarbons
are detected
.
Assessment of the data collected in this first phase of drilling will determine
the next development
steps.
Linc
Energy is committed to attempt
ing to flow hydrocarbons in the Arckaringa
Basin at the
earliest possible opportunity
and will, subject to drill
ing results and Board approval,
look to follow
up this initial three well pro
gram with a further three wells
to commence late this year.
It is
envisaged that based on the success of
the
se 6 wells Linc E
nergy will enter an aggressive and
focused drilling campaign to start to unlock the potential of this 103 Billion barrel basin.
Linc Energy's research
to date
suggest
s
that the conventional oil opportunities are also
significant with sever
al very good conventional oil well opportunities
identified for exploration
in
the near future.
Peter Bond, Managing Director and Chi
ef Executive Officer, said,
“We
look forward to the results
of
these first 3 three wells as we
further define the potential
of
this world class energy asset.
Importantly for shareholders, we have not had to
reduce our exposure to the
upside of this asset
and yet
are still able to explore and potentially develop this
simpl
y
massiv
e oi
l
opportunity.
The
targeted 2014 exploration prog
ram will help us understand the deeper, more prospect
iv
e parts of
the basin and hopefully
help us unlock the
value of this incredible
oil
asset
.
W
ith
Brent
crude
oil
at
over $11
0
per barrel
and further uncert
ainty in the global oil markets
and with
the
reports and
modelling completed by Baker Hughes
s
howin
g
a great oil and ga
s
opportu
nity awaits
us
, now is
obviously
the
ideal
time to act
a
nd
commence this drilling
p
rogram.
I
t
’
s worth n
o
ting
that
a
lthough
we
received
offers from our partnering process last year, it
didn’t make sense to farm down
this
ver
y
significant oil
acreage
b
efore we had
com
m
enced
t
o
unlock and es
tablish
the value
of this
asset
more fully by drilling the
obvious deeper shale zones and
commencing
drillin
g the
numerous
conventional oil targets.
Linc Ener
g
y has
a
l
o
t of exp
e
rience
i
n
drilling
and completi
ng
successfu
l
dril
l
ing
programs
from
the
Te
xas Gu
l
f Coast to A
laska
, where the
L
inc En
ergy
team
has perfor
m
ed some extra
o
rdinary campai
g
n
s under
very difficult
c
onditions. G
iven our
experienc
e
as a
company
, the
early drilling
and development of thi
s
16 Million
acre, 10
3
Bill
ion
BOE
asset is
best, I belie
ve, exploit
e
d in the first ins
t
ance by Linc E
n
ergy. I am confi
d
ent that our
drilling
program
in the
Ar
c
karing
a B
a
sin
w
ill be a company m
a
king project.
We
are committed to
flowing hydrocarbons
(oil and gas)
from this asset as soon as possible and look forward to
updating
the market
on our 2014 drilling result
s
and p
r
ogress
in the near future.”
SGX
Code:
TI6
OTCQX Code: LNCGY
-
3
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SG
X Announcement continued...
Linc Energy
holds over 65,000 km
2
(16 million contiguous ac
res) within the Arckaringa Basin
across seven Petroleum Exploration Licences (PELs) and one Application (PELA).
Figure 1: Arckaringa
Basin Location
Cooper Basin
Arckaringa
Basin
PEL117
PEL122
PEL119
PEL123
PEL124
Marla
Coober Pedy
Prominent Hill project
Olympic Dam
project
Leigh
Creek
PEL 120
Whyalla
Port Augusta
ADELAIDE
Moomba
Port Lincoln
Oodnadatta
Ceduna
Linc
petroleum exploration licence
Linc
petroleum exploration
licence
application
Petroleum exploration licence
Gas pipeline
Gas field
Oil/NGL pipeline
Oil field
Kilometres
0
80
160
0
50
100
Miles
PEL121
WA
NT
QLD
SA
NSW
VIC
PELA
604
PEL118
SGX
Code:
TI6
OTCQX Code: LNCGY
-
4
-
SG
X Announcement continued...
Linc Energ
y believes that data from wells drilled to date confirms that formations within the
Arckaringa
Basin have
excellent resource play potenti
al with
total organic carbon (TOC) levels,
permeability, porosity and thickness comparing favourably to prolific
US unc
onventional liquids
plays
(Bakken,
Eagle Ford, Mississippi Lime).
Figure 2: Historical Arckaringa
Basin Drilling
*Note:
1)
Prospective Resources estimate
in
DeGolyer and MacNaughton report dated 21 January 2013.
The
Prospective Resources estimate presented in this report has been prepared in accordance with the
Petroleum Resources Management System (PRMS) approved in March 2007 by the Society of
Petroleum Engineers, the World Petroleum Council, the American Associ
ation of Petroleum
Geologists, and the Society of Petroleum Evaluation Engineers by DeGolyer and MacNaughton by
John W. Wallace (consultant), who has consented to the form and context in which the prospective
resource estimate appears.
2)
Prospective Resource
s are those quantities that are estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of future development projects.
Application of any geological or economic chance factor does not equate prospective
resources to
contingent resources or reserves.