Revised April 30, 2014
We are a stand-alone project that is committed to exploring Umiat and working with the surrounding communities to provide job opportunities and to assist in protection of their subsistence way of life.
Linc Energy acquired the Umiat leases from Renaissance Alaska in July 2011. We began the permitting process in October 2011 with an ambitious exploration drilling program that commenced during the 2012–13 winter season and continued again during the 2013–14 winter season.
Umiat lies in in an extremely remote location and winter weather conditions can be harsh. Logistics and the weather challenged our team from day one and will continue to be a challenge. However, our Linc Energy Alaska team has over 100 years of Arctic experience and met the challenge. After the tundra officially opened to travel during the 2012-13 winter drilling season, Linc Energy constructed a 101 mile snow road from the Dalton Highway mile post 359 to Umiat over which 400 loads of equipment moved weighing more than 15 million pounds (7,500 tons). In addition, Linc Energy contracted and moved the Kuukpik No. 5 drilling rig to Umiat, built and maintained a 150 man-camp at Umiat, upgraded and maintained the air strip at Umiat, and flew in more than 50 loads of supplies on C-130 Hercules aircraft. Although only one well was drilled, well #18, the 2012-13 drilling program was deemed a success due to the Umiat oil field formation data gathered and key North Slope operations data and experienced obtained.
The recently completed 2013-14 winter drilling season has also been hailed as a success as Linc Energy announced the successful oil flow from the first ever horizontal well drilled at Umiat, the well #23H. Peak oil flowed at 800 barrels per day and sustained rates of 250 BOPD and is excellent quality produced at a 38.5 API gravity. Linc Energy will continue to model the data from the flow test, including working with our petroleum reservoir engineers and consultants.
Ryder Scott estimates Umiat Proved & Probable (“2P”) reserves of 154.5 million barrels of oil equivalent (“MMboe”), with a 2P NPV10% of US$2.465 billion, and Proved, Probable & Possible (3P”) reserves of 194 MMboe, with a 3P NPV10% of US$2.845 billion.