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Linc Energy holds seven exploration licences and two licence applications in their entirety for the Arckaringa Basin in South Australia, covering 16 million continguous acres, or 80% of the Basin, with exploration rights exceeding eight years over prospective areas.
Independent consultants DeGolyer and MacNaughton have estimated a potentially enormous unrisked prospective unconventional resource of 103 and 233 BBOE respectively1,2 in the Arckaringa Basin and a previous exploratory drilling program by Linc Energy in 2010 discovered a light, sweet crude oil, providing proof of an active petroleum system in this Basin.
In late 2014 Linc Energy commenced the next phase exploratory drilling program in the Arckaringa Basin in order to improve the Company’s understanding of this asset. Three of the geological formations that both Gustavson Associates and DeGolyer and MacNaughton had identified as prospective resources were targeted in the program with the results showing both formations had significant hydrocarbon generation potential.
The Stuart Range Formation indicated potential yields of up to 54 litres of oil per tonne, while the organic intervals within the Boorthanna Formation indicated a possible output of up to 70 litres of oil per tonne. Additionally, organic rich mudstones and coals were intersected within the Boorthanna Formation, signifying the discovery of an additional, previously unknown source rock.
Data gathered throughout this drilling program and to date about the Arckaringa Basin will be used to inform a development plan focused on extracting as much value from this resource as possible.
1 The Prospective Resources estimate in the DeGolyer and MacNaughton report dated 21 January 2013 was prepared in accordance with the Petroleum Resources Management System (PRMS) approved in March 2007 by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, and the Society of Petroleum Evaluation Engineers by John W. Wallace (consultant).
2 Prospective Resources are those quantities that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Application of any geological or economic chance factor does not equate prospective resources to contingent resources or reserves.