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BRISBANE, Queensland -- Linc Energy has commenced operations as part of its three well drilling program in the Arckaringa basin in South Australia. The three well locations have been selected following a lengthy and ongoing field appraisal study headed by Baker Hughes.

This drilling program is focused on the Boorthanna Trough, which formed the basis for the majority of the prospective resources separately identified by Gustavson Associates and DeGolyer and MacNaughton.

To date no previous drilling has intersected the formations at depth and the results of these wells will be important to understanding the basin in detail. Samples and core recovered during drilling activity will be sent for analysis of rock layers within the targeted formations with the most prospective source rock. Assessment of the data collected in this first phase of drilling will determine the next development steps.

Linc Energy is committed to attempting to flow hydrocarbons in the Arckaringa basin at the earliest possible opportunity and will, subject to drilling results and Board approval, look to follow up this initial three well program with a further three wells to commence this financial year. It is envisaged that if the results of these 6 wells are successful, Linc Energy will undertake a focused drilling campaign to start to unlock the potential of this basin.

Peter Bond, managing director and CEO, said, “We are looking forward to unlocking the value from this world class asset and are thrilled to have the opportunity to recommence our drilling program on this remarkable asset and get on with making the Arckaringa shale (near Coober Pedy) one of the Company’s key commercial focus points over the coming months and years.”

Linc Energy' s research to date suggests that the conventional oil opportunities are also significant with several very good conventional oil well opportunities identified for exploration in the near future.