Linc Energy Ltd (ASX:LNC) has ‘spudded’ its first oil well in what it says is the most aggressive oil and gas exploration program in South Australia for almost 30 years.
The Haystack 1 well in the Arckaringa Basin, which is about three quarters the size of the state of Oklahoma, has been described as the quickest route to revenue and profit by the company’s CEO, Peter Bond.
"The oil projects could potentially add incredible value to the 70,000 square kilometre asset,” Mr Bond said.
The company will also continue to drill coal in the basin.
On Monday, the company announced it purchased 14 oil fields in the Gulf Coast region of Texas and Louisiana.
In the second half of 2010, Linc Energy posted a profit of $327.6 million.
