In keeping with the spirit of a bit of the old, cut and past plagiarism and in an effort to emphasise Twoeasy’s thread title, lets all take a quick trip back in time...
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(Extract from)
ASX Announcement
27 September 2013
UMIAT OIL FIELD VALUATION INCREASES TO OVER US$2.8 BILLION
• Independent consultants Ryder Scott estimate Probable (“2P”) reserves for Linc Energy’s Umiat oil project in Alaska, USA of 154.6 million barrels of oil equivalent (“MMbbls”), with a 2P NPV10% of US$2.465 billion, and Probable & Possible (“3P”) reserves of 194 MMbbls, with a 3P NPV10% of US$2.845 billion.*
• 2P reserves valuation increases by approximately US$1 billion over the previous report.
Linc Energy Ltd (ASX: LNC) (OTCQX: LNCGY) is pleased to announce the update of the independent reserve estimate report prepared by Ryder Scott for 100% of the Company’s interest in the Umiat oil field project located in Alaska, USA based on Alaska’s S.B. 21 legislation. As a result of the legislation changes, Ryder Scott estimate Probable (“2P”) reserves of 154.6 million barrels of oil equivalent (“MMbbls”), with a 2P NPV10% of US$2.465 billion, and Probable & Possible (“3P”) reserves of 194 MMbbls, with a 3P NPV10% of US$2.845 billion.* This is a 65% increase in the 2P valuation from the previous report prepared by Ryder Scott on the Umiat oil field that had a 2P NPV10% of US$1.496 billion.
Alaska’s S.B. 21, signed into law by Governor Sean Parnell on 21 May 2013, provides various exploration and development incentives to North Slope producers which enhance ultimate economics on projects. This Bill was enacted to drive oil and gas investment within Alaska. The changes outlined in S.B. 21 take effect on 1 January 2014, the S.B. 21 provisions combined with some existing State incentives will allow Linc Energy to claim a significant percentage of the cost of development at Linc Energy's Umiat oil field in the foreseeable future, with these incentives being paid as cash reimbursements to the Company. Linc Energy is well advanced with its plans to continue drilling the Umiat oil field this 2013 Winter drilling season.
“We see this legislation as a win-win for the citizens of Alaska and for Linc Energy. The ultimate addition of 50,000 BOPD to the Trans-Alaska pipeline as well as the utilization of multiple Alaskan contractors employing hundreds of Alaskan citizens presents a significant positive economic impact,” noted Peter Bond, Linc Energy Chief Executive Officer and Managing Director.
Linc Energy’s Umiat oil field consists of 19,358 gross acres over three leases and is located in the western foothills/foldbelt province of the North Slope Foothills of Alaska. The reserves estimate was conducted by independent consultants, Ryder Scott Company, L.P. in accordance with the definitions and guidelines set out in the 2007 Petroleum Resource Management System approved by the Society of Petroleum Engineers.
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No vote is a HUGE! win for Linc for sure.
Cheers ..... J
