Linc Energy starts three-well drilling in Arckaringa Basin in South Australia

Linc Energy said it has commenced operations as part of its three-well drilling programme in the Arckaringa Basin in South Australia. The three well locations have been selected following a field appraisal study headed by shale experts.

This drilling programme is focused on the Boorthanna Trough which formed the basis for the majority of the prospective resources separately identified by Gustavson Associates and DeGolyer and MacNaughton as previously announced.

To date no previous drilling has intersected the formations at depth and the results of these wells will be important to understanding the basin in detail.

Samples and core recovered during drilling activity will be sent for analysis of rock layers within the targeted formations with the most prospective source rock. Analysis will include:

• Thermal Maturity – to confirm thermal gradient projections in each of the three holes;

• Source Rock – to confirm source rock quality of Stuart Range, Boorthanna and pre-Permian formations;

• Intersection of at least one of the conventional oil and gas targets identified by Gustavson as a prospective resource;

• Logging of all core holes; and

• Open hole well testing if moveable hydrocarbons are detected.

Assessment of the data collected in this first phase of drilling will determine the next development steps.

Linc Energy said if the results of these six wells are successful, Linc Energy will undertake a focused drilling campaign to start to unlock the significant hydrocarbon potential of this basin.

Linc Energy's research to date suggests that the conventional oil opportunities are also significant with several very good conventional oil well opportunities identified for exploration in the near future.

Peter Bond, Managing Director and Chief Executive Officer, said, “We are looking forward to unlocking the value from this world class asset and are thrilled to have the opportunity to recommence our drilling program on this remarkable asset and get on with making the Arckaringa Shale (near Coober Pedy) one of the Company’s key commercial focus points over the coming months and years. And if you look at the comparison table (Figure 1) below, you will see why we are so excited about this opportunity.”