Over the past few months Linc Energy has been aggressively expanding its presence into North America through the purchase of a number of oil and gas assets. The company recently announced it acquired a controlling interest in the 19,358 acre Umiat oil field. This field is located in the National Petroleum Reserve, Alaska, 140 miles, or 225 kilometres, south west of Prudhoe Bay and 80 miles, or 129 kilometres, west of the Trans-Alaska Pipeline System (TAPS).
Peak oil production from the Umiat acreage is currently estimated to be in excess of 50,000 barrels of oil per day, with an estimated oil in place of one billion barrels of Alaskan Light Sweet Crude (API 37). Chief Executive Officer Peter Bond says the move is key to reaching his company’s goal of 100,000 barrels of oil a day.
“This is one of the most significant acquisitions in Linc Energy’s history and gets us significantly closer to reaching our goal of one billion barrels of 2P oil reserves and an oil production rate of more than 100,000 barrels per day.”
“The Umiat acquisition has also given us a greater ‘northern exposure’, one that has been recognised by the Alaskan Governor himself,” said Bond.
“Using Umiat as an operational base, we intend to increase oil and natural gas exploration and development activities in the foothills of the North Slope region. The potential in this area is simply staggering and virtually impossible to replicate in any other part of the world,” said Bond.
Governor Parnell has acknowledged that Linc Energy’s acquisition and its plans for development will benefit all Alaskans and the communities in the region by helping sustain the long-term operations of the TAPS.
The Alaskan State Government has since announced plans to build an all-weather road from the TAPS to the Umiat site, with planning and environmental studies already underway. Construction of this transport infrastructure by the state substantially decreases project development risk, timeframes and capital requirements. Construction is expected to start at the end of the environmental impact study period, in about 24 months time, and take some 18 months to complete. To support the development of the Umiat region and future expansion plans in Alaska, Linc Energy will build on its Alaskan-based workforce.
Working closely with state and federal agencies, Linc Energy plans to permit and develop the pipeline infrastructure between the Umiat oil field and the TAPS. The completion of this pipeline will mark the first significant all season oil transport infrastructure in this region, opening up the area for further significant development. While the Umiat road and pipeline is being developed, Linc Energy intends to undertake further exploration, resource delineation and development of the Umiat field.