Linc Energy Limited (ASX:LNC) To Conduct A$9 Million Oil And Gas Exploration Program In Arckaringa Basin

Brisbane, Jan 31, 2011 AEST (ABN Newswire) - Linc Energy Ltd (ASX:LNC) (PINK:LNCGY) is pleased to announce it will conduct an aggressive oil and gas exploration program to the value of A$9 million on its petroleum and exploration tenements in the Arckaringa Basin, South Australia.

"We have conducted considerable preliminary work to get to this point and I firmly believe the Arckaringa Basin has a huge potential for oil and gas. This is pioneering work and the program we're running will be the most aggressive oil and gas exploration program South Australia has seen for nearly 30 years," said Linc Energy Chief Executive Officer Peter Bond.

"Our program will deliver four oil and gas wells estimated at A$9 million. The success rate for these types of wells is traditionally one in ten. Success comes with having an experienced team and very good seismic information, and we have both," said Bond.

Linc Energy has appointed Hunt Energy & Mineral Co Australia Pty Ltd, an Adelaide-based drilling contractor, as part of the contract, to drill the series of wells in the Arckaringa Basin, with earthworks set to start in February 2011. Last December Linc Energy awarded a A$2.6 million contract to Terrex Seismic for over 500 line kilometres of detailed 2D seismic program on its petroleum and exploration leases in the Arckaringa Basin.

"The Arckaringa Basin is under-explored. The big oil players of the 70s and 80s got distracted with the Moomba/Cooper Basin. There are fewer than six oil wells in the basin and most are too short or too far from targets," he said.

"Our research tells us the Boorthanna Trough on the eastern side of the basin is a strong possibility and this is confirmed by our seismic program."

Last year Linc Energy discovered an 'oil show' at its Maglia 1 well following the first round of stratigraphic drilling. Maglia 1 oil is carbonate sourced and pre-Permian, indicating there is an active oil system in the basin allowing the oil to migrate.

"The first part of 2011 will see what opportunities can be obtained through oil and gas in the Arckaringa Basin. Our South Australian strategy is based on high value activity up-front to prove up prospects and leads for development or to build potential significant joint venture operations," said Bond.

Linc Energy currently holds eight Petroleum Exploration Licenses (PELs) and seven Exploration Licenses (ELs) in South Australia. The total area of PELs is 74,027 square kilometres, with the total EL area at 2,800 square kilometres.

"Once Linc Energy can ascertain the early results from the first of these oil wells and based on a positive outcome, Linc Energy will commit to another ten (10) wells. I believe the potential to be so significant that we need to 'push the envelope' and get as many holes in the ground as quickly as makes sense."

Contact

Information for Media: Greg Meyer Media Manager Phone: +61-7-3229-0800 E-mail: greg.meyer@lincenergy.com.au ASX Contact: Brook Burke Company Secretary Phone: +61-7-3229-0800 E-mail: brook.burke@lincenergy.com.au Information for Investors: Anton Rohner Chief Financial Officer Phone: +61-7-3229-0800 E-mail: anton.rohner@lincenergy.com.au http://www.lincenergy.com.au