Linc Energy Ltd is pleased to announce the spudding of the significant 23H well at the Company’s Umiat oil field project located in Alaska, USA on 15 February 2014. The proposed program will include the drilling, completion and production testing of the horizontal well (23H).
The Umiat team has again constructed a 102 mile (175km) snow road from Dalton Highway to Umiat to support winter operations. However, unlike last year, commencement of drilling was not dependent on the completion of the snow road. The in-field ice roads have all been constructed concurrently with the snow road, allowing movement of the rig to the 23H drilling pad which had been stacked at the Umiat site over the summer.
Linc Energy’s Umiat oil field consists of 19,358 gross acres and over one (1) billion barrels of oil in place, over three leases and is located in the western foothills/foldbelt province of the North Slope Foothills of Alaska.
The reserves estimate was conducted by independent consultants, Ryder Scott Company, L.P. in accordance with the definitions and guidelines set out in the 2007 Petroleum Resource Management System approved by the Society of Petroleum Engineers.
Peter Bond, Chief Executive Officer and Managing Director of Linc Energy, said, “This is a hugely exciting opportunity for the Company. We have the opportunity to unlock the value of this asset with this well, which, if successful, has the potential to move the asset from the appraisal phase to development. Our intention is that this season’s drilling results will move some of the reserves to the proven category whilst also firming up our plans to use horizontal drilling techniques to commercially develop this world class billion barrel asset. With results from the flow test expected in late 1st quarter/early 2nd quarter this year, Linc Energy can then get on with the next stage of
development and work with the state of Alaska to bring this oil to market.”