I haven't read the reports in detail but my understanding of "prospective resources" is that it is what can be technically extracted , i.e. not just oil in place .
That said only 1 well has been sunk so the estimates are pretty well meaningless . The figures are roughly what I would expect and couple of other central basins have similar estimates .
So to repeat myself ignore the numbers because there is a lot there the question is whether it can be got out , and economically .
There are some things you have to bear in mind with shale oil i.e. liquids . Shale oil is much more difficult to get out than shale gas . The fractures have to be opened wider and propped there so they don't close up for oil to flow . The pressure in the reservoir may have to be dropped to get oil to flow .
What Linc should be looking for is permeable and porous rock in contact with the shale which has become an extensive conventional reservoir .
No doubt there will be acreage within all maturity windows ; oil , condensate , gas .
If Linc can fracture stimulate firstly horizontal and then vertical wells and get commercial rates of oil to flow then this find would be company making .
I'm excited by the POTENTIAL but just as importantly for us is that the U.S. operation is offsetting an increasingly significant proportion of cash burn .
LNC Price at posting:
$2.14 Sentiment: Buy Disclosure: Held
