Linc Energy revealed Wednesday that it will be moving into production drilling in the Arckaringa Basin, following two independent reports confirming the presence of shale oil in the onshore basin, South Australia.
A report prepared by Gustavson estimated that the Stuart Range, Boorthanna and Pre-Permian unconventional reservoirs could hold unrisked prospective resources of up to 233 billion barrels of oil equivalent (boe), while a separate report by DeGolyer and MacNaughton (D&M) estimated that the region could hold unrisked prospective resources of up to 103 billion boe.
"These conclusions presented by Gustavson and D&M are consistent with [our] view that formations within the Arckaringa Basin have excellent resource play potential with total organic carbon levels, permeability, porosity and thickness that compare favorably to prolific U.S. plays such as the Bakken and Eagle Ford," Linc said in its disclosure.
"The estimates provide strong encouragement that the balance of the basin may also be prospective for conventional hydrocarbon deposits and suggests that additional work on conventional resource potential is justified," Linc added.
The company has appointed Barclays Bank for advice on strategic options, including the introduction of an experienced shale operator to joint venture the development of this shale play. Linc's Managing Director Peter Bond told Rigzone Wednesday in an interview that the company will take around six months to identify a suitable operator.
"We are keen to work with both international and local partners, especially Asian partners," Bond said.
After selecting a partner, Bond intends to develop the company's assets in the Arckaringa Basin through the drilling of both exploration and production wells. The company is also exploring the possibility of doing horizontal drilling in its permits.
Linc, through its wholly owned subsidiary SAPEX, currently holds seven petroleum licenses that cover a total of 21,224 square miles (54,970 square kilometers) in the 31,000 square miles Arckaringa Basin. Linc has also obtained approval for an additional petroleum license that would add another 3,649 square miles to the area of interest.