2014/15 Drilling Program Final Report confirms significant hydrocarbon potential of the Arckaringa Basin
The Stuart Range Formation shows potential yields of up to 54 litres of oil per tonne
The Boorthanna Formation shows potential yields of up to 70 litres of oil per tonne
Potential discovery of a new hydrocarbon system within the Boorthanna Formation
Next stage of development to reprocess existing seismic data and acquire new seismic to identify next drilling targets
Linc Energy Ltd (SGX:TI6) (OTCQX: LNCGY) has recently received the laboratory results of its Arckaringa Basin 2014/15 drilling program and is pleased announce the program’s successful completion.
Mr Craig Ricato, Linc Energy’s CEO & Managing Director said “The laboratory test results from the 2014/15 drilling program are very encouraging. The additional information gathered on the Formations within the Arckaringa Basin has added significantly to our understanding of the petroleum systems within the basin and will inform our development plan for the asset. Both target Formations indicate significant potential hydrocarbon yields. As such, the Company will continue to explore areas where we expect to encounter the Formations at greater depths to achieve greater thermal maturity”.
Mr Ricato went on to say “Linc Energy is committed to further developing the Company’s understanding of the Arckaringa Basin and is focused on delivering the most cost effective development plan to ensure shareholder value is maximised. The Company recognises the need to attract strong strategic partners to the basin and is focused on delivering a commercial transaction that supports an accelerated exploration and development program. Based upon the results from the 2014/15 program, we remain very confident that the Arckaringa Basin contains significant hydrocarbon potential and we remain committed to its development”.
A program summary and technical update on the analysis and interpretation completed on the Pata 1 (located in PEL121) and Eba 1 (located in PEL121) cuttings and rotary side wall cores (RSWC) is provided below.
The drilling program for 2014/15 was designed to assess the potential of the Arckaringa Basin for unconventional hydrocarbon production from the Permian and pre-Permian Formations. The results of the laboratory testing of recovered samples mark the successful completion of the 2014 and 2015 drilling program. The program achieved its goal of adding significant new information to the existing data collected by the Company on the basin. The program consisted of two wells, Pata 1 and Eba 1.
Total expenditure for this program is currently being reconciled and finalised. Once completed, total expenditure will be reported in the 2015 Annual Report.
The Pata 1 well targeted the Boorthanna Trough where the Stuart Range was interpreted to be of sufficient depth to be within the oil generation window, based on current seismic data. A thick section of organic rich shale was intersected in both the Stuart Range and Boorthanna Formations exhibiting potential for hydrocarbon generation if it can be found at greater depths (higher maturity) in the basin. Linc Energy will continue to review the current seismic data to define areas where the Stuart Range and Boorthanna Formation is at greater depth and has been exposed to higher heat flow. Additional seismic data will be required as previous programs have traditionally focused on delineating stratigraphic highs and conventional targets within the basin rather than the troughs.
The Eba 1 well targeted a thick package of pre-Permian sediments interpreted to be up to 2km thick and believed to be the source of the Maglia 1 oil show (previous drilling program). In this well, the intersected pre-Permian sediments contained lower Total Organic Carbon content than was expected however testing results indicated that they were mature enough to have produced hydrocarbons in the past. Drilling results also place the Formations at much greater depth than originally anticipated. The pre-Permian Formations will be remapped within the regional seismic model in an attempt to better understand the organic areas that could constitute potential source rocks for hydrocarbon generation.
For more detail, view the ASX Announcement Linc Energy 1-7-2015 (PDF)