I'm not sure if my memory is correct and I am speaking off the cuff here but did Linc have to drill Umiat within a certain timeframe or lose their rights to the lease?
They knew the oil was there but what AK govt needs is proof of commercial viability to link it to trans alaska pipeline.
A risky game but high reward.
Nobody had a Umiat core worth analysing to determine the way forward. Linc have that now.
Linc use of concrete lining and perforation charges, to the lay person having read the US Navy drilling reports and analysis of what worked previously in Umiat, looked incompetent in the vertical well #18 but at least they got that core and proved that the use of concrete lining and perforation chages is not a good idea.
The horizontal well by its nature will be a "barefoot completion" (thanks Dicko for the terminology there) and is the proposed commercial type of hole. In some ways its a shame that they did not get time to do #23H in April because they may have proven Umiat commercial viability and the wheels of progress would already be turning but this season they will get that hole done and will do it with the benefit of the results from scientific core analysis.
We have a greater probability of success this season with the advantage of core analysis - but never a guarantee.
LNC Price at posting:
$1.81 Sentiment: LT Buy Disclosure: Held
