Linc Energy Limited (ASX:LNC) Spuds New Well in Barbers Hill Oil Field, Texas, USA

Brisbane, Nov 15, 2011 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC) is pleased to announce the commencement of drilling on the Fitzgerald Unit #1 of the Barbers Hill oil field in Chambers County, Texas. This is the first new well to be totally drilled by Linc Energy since acquiring the Gulf Coast assets of ERG Resources on 11th October 11 2011. The well will be drilled utilising the Pioneer Rig #15 and has a proposed total depth of 1,706 metres (5,544 feet).

The Barbers Hill field was originally discovered in 1916 and is geologically related to the Barbers Hill salt dome. It has produced over 130 million barrels of oil and reached a maximum annual production level in excess of 8 million barrels in 1931. The oil is produced from the prolific "Miocene" and "Frio" sand reservoirs that are between 5 and 35 million years old.

The Fitzgerald Unit #1 well is targeting multiple productive reservoir sands which have produced over one million barrels of premium crude in this part of the field. To reach the multiple potentially productive sands that lie between 1,025 and 1,700 metres (3,300-5,500 feet), the well will be directionally drilled. Linc Energy will be using advanced Logging-While-Drilling (LWD) technology, thus allowing for course corrections during drilling and assuring that the well will be in the most advantageous up-dip structural position.

Linc Energy's Chief Executive Officer, Peter Bond, said, "Spudding the Fitzgerald Unit #1 well represents a milestone for Linc Energy by kicking off the first of our development well program which is to be drilled in the coming months in our new Gulf Coast oil fields. Drilling additional development wells in proven reservoirs is one of the methods that Linc Energy will use to unlock the vast oil potential held within these fields. We are targeting highly productive zones in proven reserves - it's a low risk way of rapidly building our crude oil production rates."

Contact

Information for Media: Heather Stewart Media Manager Phone: +61-7-3229-0800 E-mail: heather.stewart@lincenergy.com ASX Contact: Brook Burke Company Secretary Phone: +61-7-3229-0800 E-mail: brook.burke@lincenergy.com Information for Investors: Justyn Peters General Manager Investor Relations Phone: +61-7-3229-0800 E-mail: justyn.peters@lincenergy.com