During the last quarter the SAPEX team focused on completion of the technical evaluation of the shale oil potential in the Arckaringa Basin and completion of evaluation of prospective resources contained within Stuart Range Formation, the Boorthanna Formation, and the underlying pre-Permian sediments. All three of these sedimentary units have been identified as potential petroleum source rocks and have been allocated prospective resources by two independent recognised industry consultants.
As reported in the last edition of InvestorLinc, Gustavson Associates identified unrisked prospective resources of 233 billion barrels of oil equivalent in the three identified formations. DeGolyer and MacNaughton identified unrisked potential resources of 103 million barrels of oil equivalent in the three formations and further identified 3.5 billion barrels oil equivalent on a risked basis.
Barclays Bank PLC is acting as a strategic advisor on the SAPEX petroleum assets within the Arckaringa Basin. A process has begun which is aimed at identifying an experienced industry partner to join Linc Energy in a JV or other arrangement to further explore and develop the potential for shale oil resources. Planning for additional drilling and seismic to further define the shale oil resource potential continued.
Linc Energy has plans to perform further 3D seismic work over selected exploration areas in the second half of 2013 to further delineate geological structures and develop drilling prospects and has commenced the preparation to enable this work to occur in that timeframe.