Linc to push Alaskan project as tests yield sweet crude
SARAH-JANE TASKER The Australian March 31, 2014 12:00AM
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An aerial view of Linc Energy’s well in the Umiat oilfield in Alaska and the rig used to
An aerial view of Linc Energy’s well in the Umiat oilfield in Alaska and the rig used to drill a horizontal well. Source: Supplied
LINC Energy has completed drilling at one of its wells at its Alaskan project, which is the first time crude oil has flowed in Umiat, a frontier oil lease in the northern part of the state, since 1952.
Chief executive Peter Bond said Linc was now moving forward to complete environmental studies and conduct engineering of the surface facilities for the Umiat commercial operation, including finalising the best routes for the Umiat pipeline and road.
Linc Energy’s drilling program marks not only the first drilling at Umiat since the late 1970s, but the company says it is the first time modern Arctic drilling techniques have been applied to the reservoirs. Marking the milestone, Mr Bond met Alaskan governor Sean Parnell to show him a sample of the oil produced from the Umiat well and to discuss how Linc and the state of Alaska could work together in finalising the permitting process to take Umiat into full commercial production.
The oil would be pumped into the Trans-Alaskan Pipeline (TAPS). Linc, which has delisted from the Australian market and relisted in Singapore, noted that TAPS urgently required more oil.
Linc’s Umiat oilfield comprises 7800ha over three leases and is located in the western province of the North Slope Foothills of Alaska.
Mr Bond said the company had now proved that oil flowed easily from the Umiat reservoir with very good permeability. “I was fortunate enough to be on site at Umiat during the oil flow and was very impressed with how easy the well came in (flowed) and the quality of the oil, which is light sweet crude,” he said.
The Umiat reservoirs were discovered by the US Navy in the mid-1940s as a part of the exploration of the National Petroleum Reserve. “I’d read stories of how the US Navy was known to put the Umiat crude oil straight from the well head into their trucks and drill rigs,” Mr Bond said.
“And after seeing and experiencing the oil for myself I can see why they would do this, as the Umiat oil looks like and has the consistency of diesel fuel, just fantastic quality oil that did not change throughout the flow test.”
Linc expects peak production could be approximately 50,000 barrels of oil per day.
LNC Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
