Australia: 'Massive' Multibillion Barrel Oilfield Found by Linc Energy
By Umberto Bacchi | January 25, 2013 12:37 AM EST
A "massive" oil deposit potentially worth some trillions of dollars has been discovered in southern Australia.
Brisbane company Linc Energy announced it has found untapped shale oil equivalent to hundreds of billions of barrels trapped within the rocks of the Arckaringa Basin, 1,000km northwest of Adelaide.
"[It could be] several times bigger than all the oil in Australia," Linc managing director Peter Bond told the Herald Sun. "The opportunity of turning this into the next shale boom is very real."
Two independent reports said the deposit holds ''unrisked prospective resource'' of up to 223 billion barrels of oil equivalent.
"That's massive," said Bond. "If it comes in the way the reports are suggesting, it could well and truly bring Australia back to [oil] self-sufficiency."
Linc's share price on the Australian stock exchange rocketed up 30 per cent in a day, to a 52-week pike of $2.82, closing at $2.67.
The deposit was valued about $20tn (£12.6tn) by South Australia state mining minister Tom Koutsantonis.
"If the reserves and the pressure were right over millions of years and the rocks have done the things they think they've done, they think they can extract vast reserves of oil out of South Australia which would have a value of about $20 trillion," Koutsantonis said.
However the valuation was played down by the company, as the ''unrisked prospective resource'' classification means that the actual size of the deposit was not certain and may not have commercial viability.
"That's not our valuation. I don't know who did that but someone's got a calculator out and come up with that number. We wouldn't put a valuation on it at this stage. It's too hard," Bond told Business Day.
However Linc was confident it was sitting on an ocean of black gold.
"Formations within the Arckaringa Basin have excellent resource play potential with total organic carbon levels, permeability, porosity and thickness that compare favourably to prolific US plays such as the Bakken and Eagle Ford," the company said.
It had asked Barclays to find a joint venture partner to develop the field.
"No matter how you look at it, it's big,'' Bond said.
"It's a multibillion-barrel opportunity, and that's a good news story. Three, four, five billion barrel resources are virtually unheard of these days, so even stressing this number down to the minimum number the experts stress it down to, it's still a big story.''
To contact the editor, e-mail:
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- Jeremy Meeks Death Hoax: Handsome Felon's Fake Death after Release from Jail Goes Viral
- Another Aviation Disaster: Taiwan Plane Crashes, Passengers Aboard Feared Dead [PHOTO]
- 'Dronies' to Become Latest Trend as Tourism New Zealand Buys Drone to Record Tourists' Videos
- Tony Abbott Launches #BringThemHome Operation for MH17 Victims; Black Avatars Trending on Social Media
- Former Destiny’s Child Star Farrah Franklin Arrested
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Google Nexus 8 Release Date Soon Along with 2 More HTC Android Tablets – Reports
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales