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Investor Linc Newsletter

December 2011 /20

Significant Oil Shale Discovery

Linc Energy’s exploration team recently discovered a significant oil shale deposit within the Stuart Range Formation located in the Arckaringa Basin in South Australia.

The oil shale deposit was intersected during the completion of the ‘Arck 1’ stratigraphic well drilled in PEL 122 as a part of Linc Energy’s current South Australian exploration program.  The deposit occurs at depths of over 854m covering an area of approximately 284,000 acres. 

Rock-Evaluation Pyrolysis testing results on the Stuart Range Formation shales intersected during the drilling program indicate oil shale with potential oil yields of 25 litres to 45 litres of oil per tonne. 

Shale oil (or kerogen oil) is an unconventional oil produced from oil shale. Modern technologies make it possible to process the shale oil underground (in situ processing), extracting the oil via oil wells.  The resulting oil can be used immediately as a fuel or as oil refinery feedstock.

South Australia’s Minister for Mineral Resources Development, Tom Koutsantonis is supportive of Linc Energy’s exploration and development program in the area and says this discovery “reinforces the prospectivity for shale oil in the Arckaringa Basin.”

Linc Energy’s CEO, Peter Bond said, “This exploration program and our recent success of discovering what appears to be a multibillion barrel unconventional oil shale play provides significant opportunities for Linc Energy and the State of South Australia, but frankly it’s just the beginning. It is also another example of the incredible depth and quality of the resource assets which Linc Energy holds.”

With Linc Energy’s current focus in South Australia on oil and gas exploration, this crucial seismic and drilling program provides the science behind an exploration platform to not only identify new oil and gas targets for the company, but in the case of the Arckaringa Basin also piece together the potential for a new hydrocarbon producing region.