Linc may take partner at Umiat

Linc Energy Ltd. may form a joint venture to pursue development of the Umiat field.

Having recently completed a successful flow test at the undeveloped oil field in the foothills of the Brooks Range Mountains, the Australian company said it is “evaluating the advantages of introducing an industry partner to assist us in the future development.”

Earlier this year, the subsidiary Linc Energy (Alaska) Inc. completed Umiat No. 23H, the first horizontal well drilled at the oil field discovered by U.S. Navy contractors in 1946.

A subsequent flow test produced a sustained rate of 250 barrels of oil per day, or 650 barrels total during four flow tests conducted over a seven-day period at the field, according to the company. The well flowed at a peak rate of 800 bpd, Linc said. With a gas drive installed, the company believes the well would produce as much as 2,000 bpd.

Shortly after the test, Linc said it intended to develop the field and began conducting early engineering and permitting for surface facilities, pipelines and roads. But the Umiat field is notoriously remote, even by Alaska standards, and bringing it into production would require significant infrastructure investments. The state has expressed an interest in building a road to Umiat to encourage investment, but the effort has been stalled.

- Eric Lidji