Linc still mulling Umiat sale

Linc Energy Ltd. is still considering offers to sell the Umiat oil field.

The Australian independent “continues to engage with these parties while pursuing its permitting and development plans for the field,” according to recent quarterly filings.

In September, the company launched “a formal process to work with additional parties who have expressed an interest in the potential acquisition of the company’s entire USA based oil and gas portfolio,” which would include the undeveloped Umiat oil field.

While the earlier announcement provided little insight about the nature of the inquiry, the current update suggests that the solicitation came in response to the results of Umiat exploration work this past winter. “The company’s Umiat 23H horizontal well has attracted attention, with Linc Energy receiving expressions of interest from third parties regarding the future development of the oil field,” the company wrote in its filings.

Umiat 23H was the first horizontal well to be drilled and flow tested at the known oil field in the foothills of the Brooks Range Mountains. The flow test produced a peak rate of 800 barrels per day and a sustained rate of 250 barrels per day, according to Linc.

Those results convinced Linc to pursue development. The company is still working through early environmental studies but has suggested a 70-well development plan.

Back in September, Linc said it would make a decision about the sale by the end of the year. Any sale of such “core assets” would require the approval of shareholders.

- Eric Lidji