LNC acquires oil producing Assets

This is a ripper of an announcement!!


LINC ENERGY ACQUIRES OIL PRODUCING ASSETS IN WYOMING, USA
 Linc Energy has acquired 27,856 acres of producing oil fields in the Powder River Basin in Wyoming, USA from Rancher Energy Corp.
 Current oil production of approximately 190 barrels per day across three fields.
 Potential to increase oil production from EOR (CO2 Flooding) could be in the 10,000 barrels/day to 20,000 barrels/day range with total recoverable oil from these fields being approximately 100 million barrels.
 Immediate revenue to be realised following completion of the transaction
Linc Energy Ltd (ASX:LNC) (OTCQX:LNCGY) is pleased to announce that its wholly owned subsidiary, Linc Energy Petroleum (Wyoming) Inc., has acquired three producing oil fields (approximately 27,856 acres) from Rancher Energy Corp., securing immediate oil production and a significant CO2 enhanced oil recovery (EOR) opportunity.
The three oil fields have been acquired from Rancher Energy Corp., a Nevada corporation currently in Chapter 11 bankruptcy, for a total consideration of US$20 million. Prior to entering Chapter 11 bankruptcy, Rancher Energy Corp. had acquired the three fields for a total consideration of approximately US$70 million. The Linc acquisition of the Rancher Energy assets was approved by the United States Bankruptcy Court on February 24, 2011 and completion of the transaction is expected in March 2011.
The three fields purchased from Rancher Energy are “Big Muddy”, “South Glenrock B” and “South Cole Creek”. The fields, located 15 miles east of Casper, Wyoming, have combined production of 146.6 million barrels of oil to date from an estimated Original Oil in Place (OOIP) of 466.6 million barrels of oil.
Independent reports commissioned by Rancher Energy indicate that the fields have the potential to increase recoverable oil by up to 70 million barrels from enhanced oil recovery (EOR) techniques utilising CO2 flooding operations.