Linc Energy CEO and Managing Director Peter Bond announced this week that Terrex Seismic had been awarded a $2.6 million contract for an aggressive 2D seismic program on Linc Energy’s petroleum and coal exploration leases in South Australia’s Arckaringa Basin.

Mr Bond said that Terrex, an Australian company, was one of Australia’s leading onshore seismic acquisition contractors, and best equipped to undertake Linc Energy’s extensive seismic program in South Australia’s Arckaringa Basin.

“We are about to undertake an  exploration and development phase for oil and gas in South Australia. The seismic program involves over 500 line kilometres of dedicated testing in a previously under explored section of the Arckaringa Basin,” Mr Bond said.

“Our oil and gas strategy is built around up-front, high value addition activities, designed to prove prospects and leads for either sole development by Linc Energy or to build potential Joint Venture operations,” the Linc CEO said.

Terrex Seismic will be providing a field crew of 30 highly skilled personnel for Linc Energy’s two month seismic program.

Linc Energy’s 2010 Arckaringa Seismic Survey will be conducted within the area of its Petroleum Exploration Licences 117, 121, 122 and 123 with the possibility of additional surveying if required.

“Linc Energy holds significant petroleum and coal exploration tenure in central northern South Australia. This initial testing program will focus on the petroleum (oil and gas) and UCG potential of the Permian and pre-Permian sequences found within the Basin,” Mr Bond said.

“Multiple sources exist with oil mature source rocks at various levels within the basin and a variety of oil traps ranging from small structural closures (South Maglia) to giant pinnacle reefs (William Creek 1),” Mr Bond said.

Based on these results, Linc Energy has moved quickly to reprocess existing seismic and acquire additional detailed gravity and seismic information in order to better understand the distribution and thickness of the older pre-Permian sediments that are believed to be the origin of the oil found in the Maglia-1 well that Linc Energy drilled earlier this year.

Details of the Arckaringa Basin oil drilling program will be unveiled in the coming weeks.
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