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SAPEX is one of Linc Energy’s four operating divisions and is based in Adelaide. It holds all of Linc Energy’s petroleum and mineral licences in South Australia, with a total area of ~24,600,000 acres in the Arckaringa, Cooper, Eromanga, Walloway and Stansbury Basins.
SAPEX manages all licence tenements and executes the requirements of those licences. Minimum expenditure is a fundamental part of the work programs operating in South Australia.
The SAPEX team is further tasked with unlocking the commercial potential of the resources contained within its acreage.
Linc Energy’s oil discovery in Maglia-1 in 2010, and the subsequent geotechnical analysis of organically rich cores recovered from the Arck-1 and Wirrangula Hill-1 wells in 2011, signalled the potential for commercially viable deposits of shale oil.
The Company submitted its internal findings to two independent experts for verification and in January 2013, Linc Energy announced that both had confirmed three formations in the Arckaringa Basin had significant shale oil resource-play potential.
Analysis presented in separately commissioned reports by DeGolyer and MacNaughton (D&M) and Gustavson Associates (Gustavson) indicated the Stuart Range formation and the underlying Boorthanna and Pre-Permian formations are rich in oil and gas-prone kerogen, which may form the basis of a new liquids-rich shale play.
Linc Energy holds a 100% interest in licences and applications covering more than 65,000 contiguous square kilometres (16 million contiguous acres) in the Arckaringa Basin.
D&M estimate total un-risked prospective resources for the Arckaringa Basin at approximately 95 billion barrels of oil equivalent (BBOE).
D&M has applied a probability of geologic success to estimate unconventional prospective resources on a risked basis of 3.5 BBOE at 51% liquids.
Gustavson estimate total un-risked prospective resources for the unconventional reservoirs in the Arckaringa Basin to be 233 BBOE. Gustavson has also conducted a preliminary assessment of resource potential in conventional reservoirs in portions of the Arckaringa Basin, amounting to a further 125 BBOE on an un-risked basis. The estimates on the unconventional reservoirs are encouraging and demonstrate potential for the balance of the Basin to contain conventional hydrocarbon deposits, which suggests additional work on conventional resource potential is justified.
The findings in these reports were consistent with Linc Energy’s view that the various formations within the Arckaringa have excellent shale oil resource-play potential with total organic carbon levels, permeability, porosity and thickness comparing favourably to other high-volume unconventional shale oil plays such as the Eagle Ford and Bakken in the United States.