Source: Linc Energy
Linc Energy (ASX:LNC) (OTCQX:LNCGY), through its wholly owned subsidiary, SAPEX Limited, has been successful in bids for two new exploration licenses in South Australia’s Cooper Basin.
The South Australian Mineral Resources Development Minister, Tom Koutsantonis, on April 11, 2011 announced the grant of licenses for the tenements, encompassing a total area of 6180 square kilometers in the north east corner of the State.
Linc Energy Chief Executive Officer (CEO), Peter Bond, said, “This is part of Australia’s largest onshore exploration province, and Linc Energy has committed to an aggressive drilling and activities program that includes 2D seismic and drilling.”
“We plan to spend in excess of $14 million on the two tenements over a five year period, drilling four to six wells on our new sites in the region,” the CEO said.
The Department of Primary Industries and Resources of South Australia (PIRSA) conducted competitive bids for exploration acreage with a total of 11 Australian and International bids received for three petroleum licenses in the Cooper Basin, an area that houses many hundreds of working oil and gas wells.
“Now that we have the go ahead, we will immediately commence negotiations for the appropriate native title agreements required for the purpose of the granting of these licences by the State of South Australia so we can get on the ground as soon as possible,” the Linc Energy CEO said.
“I see a significant opportunity to explore and develop the Cooper Basin in a largely underutilised region.”
“We know there are historic petroleum and gas shows and we plan to build on this with an aggressive geophysical exploration, backed up by prospect drilling in future years,” Mr Bond said.
“We are looking forward to cultivating our Cooper Basin oil and gas development in conjunction with our Arckaringa Basin program, which is already underway,” he said.
Earlier this year Linc Energy announced a $9 million oil and gas seismic and drilling program in the Arckaringa Basin and subsequently announced a full 10 well program in the Basin, expanding the original plan by a further 6 wells, which will take the 10 well oil drilling program in the Basin to an approximate $22 million program.
“Linc Energy is pushing its oil and gas opportunities particularly aggressively because, simply put, the potential upside is huge,” said Mr Bond.