Linc Energy Confirms Shale oil Potential in South Australia

Linc Energy has said that two separate independent reports confirm the presence of shale oil in the Arckaringa Basin, South Australia.

The report by Gustavson estimated that the Stuart Range, Boorthanna and Pre-Permian unconventional reservoirs could host Unrisked Prospective Resources of 233 billion barrels of oil equivalent while DeGolyer and MacNaughton’s estimate  was about half that at 103 billion boe, Proactive Investors said citing a company statement.

Both reports indicate the Stuart Range formation and the underlying Boorthanna and Pre-Permian formations are rich in oil and gas prone kerogen that may form the basis of a new liquids-rich shale play. 

The conclusions are consistent with Linc’s view that formations within the Arckaringa Basin have excellent resource play potential with total organic carbon (TOC) levels, permeability, porosity and thickness that compare favourably to prolific US unconventional liquids plays such as the Bakken and Eagle Ford.

These estimates provide strong encouragement that the balance of the basin may also be prospective for conventional hydrocarbon deposits and suggest that additional work on conventional resource potential is justified.

Linc’s licences cover more than 16 million contiguous acres, or the majority of the Arckaringa Basin, Proactive Investors said.