Monday, February 25, 2013

Fortunes will be Made in Arckaringa Basin

The energy world has been turned on its head, as the announcement by a comparatively small energy company named Linc Energy Ltd. (AXS: LNC) that it holds the leases to a gigantic new shale oil field in southern Australia named the Arckaringa Basin, near the tiny town of Coober Pedy, that contains an estimated 233 billion barrels of oil, with the possibility it could be as high as 400 billion barrels, based upon low initial estimates in other shale fields.

As to the 233 billion barrels of oil estimated to be in the Arckaringa Basin, those figures come from Gustavson Associates, an independent petroleum industry consulting firm.

While investors could make a lot of money from investing in Linc Energy Ltd. and holding it for the long term, there are other plays in the sector that will prove to be even more profitable.

Since the huge amount of oil would be impossible for Linc to produce on its own, it means there will be some partners in the operators and service providers side of the energy industry to help them tap into the huge reserves.

Even though some names have been floated around as the most likely to be included in the process, they haven't been confirmed as being locked in at this time.

With that in mind, we all know it'll have to be some big players, and almost certainly they'll already have a presence in Australia, along with the needed connections that accompany it.

Those knowing the fairly short list of companies that fit that description, they will be the first to comfortably invest in them, and among those making the most money. 

Well production is scheduled to being in the early part of 2014, so the time for preparing to invest in the short list of companies that could be partners in the venture is now.

1 comment:

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