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
- Pope Francis Meets Sudanese Woman Who Was Spared Death for Apostasy (PHOTOS)
- Malaysia Airlines Flight MH17: King Williem-Alexander, Queen Maxima Hold Solemn Reception Ceremony for Victims
- Jennifer Lawrence & Nicholas Hoult Allegedly Split: Mad Max Actor Cheats with Kristen Stewart & Riley Keough - Reports
- Celebrities Suffering From Lupus: Facts About the Disease
Join the Conversation
- 2014 Meteor Shower: Where to Watch Delta Aquarids July 28-29 Peak Online, NASA Cameras Spotted Start of Perseid Meteor Shower
- Viral Wedding Photo: Amy Hicks Reveals True Story behind Viral Photo that Created Trending Hashtag on Twitter #westillcoming
- New Zealand-Born IDF Soldier Killed in Gaza Attack Amid Ceasefire Promises
- Six-Year-Old Canada girl Dies after Hit by Sedan in Crowded Store
- Volunteer Teen Rapes Orphans during Mission Trip
- Apple iPhone 6 on Two Confirmed Release Dates, New Parts Leaked Suggesting Bigger iPhone to Come
- Google Nexus 6, 8 with Android L on Release Date Promises Killer Mobile Device Experience
- iPhone 6 Release Date Relevance to iOS Newbies: Specs Meaning, Price Considerations
- Xiaomi Mi4 vs OnePlusOne vs Nexus 5: Mi4 is the ‘Perfect’ Phone
- Israeli Women Stripping Naked for IDF Soldiers
- HTC One M8 Android 4.4.3 KitKat Update Roll Out, Introducing the HTC One Remix
- Shocking Video of Pedigree Dog Culling in Bali Emerges [Video]