Linc Energy has executed an agreement with GeoPetro Alaska LLC to acquire onshore oil and gas leases in the resource abundant Alaskan Cook Inlet Basin, securing potential short-term revenue opportunities.

The acquired leases fall in Alaska's Cook Inlet Basin, which is abundant in coal resources and home to numerous oil and gas pipelines feeding the State's energy needs. Gas pipelines from the basin run to Kenai, where gas is primarily used to fuel a liquefied natural gas (LNG) plant, and to Anchorage where it is consumed for domestic use. Anchorage Gas pricing is currently approximately US$7.00 per mcf, due to long term gas shortages in the region.

There is an estimated 18 billion tonnes of coal deposits within the area covered by the acquired oil & gas leases, with a large percentage of this coal believed to be suitable for Underground Coal Gasification (UCG) once the relevant leasing access and State permitting has been completed.

Geological data also indicates a number of locations within the acquired leases to have formations with the potential to contain significant accumulations of natural gas, capable of rapid development and delivery into the nearby pipelines for domestic use in Alaska, making this asset a potential early cash-flow opportunity for the company. Based on this information, it is Linc Energy's intention to conduct an exploration program within these locations in 2010 immediately following the transfer of leases. Linc Energy is aiming to drill its first well later this year at a location already developed by GeoPetro known as "Frontier Spirit - 1". The drill pad for this well is already in place, and site is in a convenient location with easy access from a sealed road within 100 metres of the drill pad, and a gas pipeline is just over a mile (approx 1.9km) from the location.

Tags: Linc Energy Ltd