core sector communique

LINC ENERGY RECORDS ‘OIL SHOWS’ IN THE ARCKARINGA BASIN

• Oil shows at Maglia-1 in the Arckaringa Basin are the most significant find in the history of the basin

• Active petroleum system proven during Arckaringa Basin exploration and appraisal program

Linc Energy Ltd (ASX:LNC) (OTCQX.LNCGY) is pleased to announce interim results from the first round of drilling in its Arckaringa Basin Petroleum Exploration Licenses (PEL’s) aimed at assessing the suitability of the Permian Mount Toondina coal seams for Underground Coal Gasification (UCG) and, indirectly, also assessing the Coal Seam Gas (CSG) potential at the selected locations.

In October 2009, Linc Energy mobilised ‘Boart Longyear Rig 9’ to the Arckaringa Basin, South Australia where it currently holds seven Petroleum Exploration Licenses prospective for UCG, CSG and conventional petroleum. Six wells were drilled, of which four cut large diameter core over the Upper Mount Toondina sequence for geotechnical analysis, specialised coal gasification testing and coal seam gas analysis. Two of the wells have been completed as piezometers to provide a baseline for ground water behaviour in the area.

Heavy flooding postponed the final two wells in the ‘PEL’ program along with drilling aimed
at appraising conventional coal mining in selected areas held under mineral Exploration Licenses (EL’s). Subject to weather conditions, it is anticipated that finalisation of the program will occur early in the second quarter of 2010.