Linc fields shale calls
"You've got the majors, but by the same token a lot of second-tier groups with big chequebooks," said Peter Bond, chief executive of the Brisbane-based company. "We've had about 70 inquiries."
Linc has hired Barclays Plc to find a partner to develop shale oil prospects in the Arckaringa Basin that it says may be similar to acreage in the Bakken and Eagle Ford shale regions in the US.
Any partner would follow global energy companies including Chevron Corp, ConocoPhillips, Statoil and BG Group in making shale bets in Australia to tap the world's sixth-biggest potential resources of the fuel.
"There's a good likelihood of a partnership forming," said Paul Jensz, an analyst at PhillipCapital. "You'd think there would be a few majors involved. It's risk management. They don't want to be left out of a large new energy play."
Linc is seeking a partner to contribute as much as $300 million to fund the shale oil exploration, Mr Bond said on Thursday.
Of the companies that have contacted Linc, there are a "lot of North American groups, but quite a few from Asia and India and Europe as well," he said.
Frequently Asked Questions about this Article…
Linc Energy said it has been contacted by about 70 companies from North America to India seeking to fund the development of its shale oil prospects in central Australia, indicating strong industry inquiry.
The prospects are in the Arckaringa Basin in central Australia. Linc says the acreage may be similar to US shale regions such as the Bakken and Eagle Ford, and Australia is described as having the world's sixth-biggest potential resources of shale fuel.
Linc Energy has hired Barclays Plc to identify and secure a partner to help develop the shale oil prospects in the Arckaringa Basin.
Linc Energy is seeking a partner who could contribute as much as US$300 million to fund shale oil exploration in the Arckaringa Basin.
Inquiries have come from a mix of majors and second‑tier groups, with a lot of North American firms and interest from Asia, India and Europe, according to Linc Energy's comments.
Yes. The article notes that global energy companies such as Chevron, ConocoPhillips, Statoil and BG Group have made shale bets in Australia, which potential partners to Linc might follow.
Paul Jensz, an analyst at PhillipCapital, said there's a good likelihood a partnership will form and that a few major companies would likely be involved as a form of risk management so they don't miss out on a large new energy play.
Linc Energy has compared the Arckaringa Basin acreage to the Bakken and Eagle Ford shale regions in the US, suggesting a potentially similar type of shale resource, but the article only reports the company's comparison rather than independent verification.
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