2011-06-15-2011-06-06

To buy assets including 14 producing oil fields on 156 leases spanning 13,400 acres, gaining 3,300 BO/d, 20.5 MMBO proved.

Linc Energy Operations USA, a U.S. subsidiary of Linc Energy Ltd., Queensland, Australia, (Australia: LNC) has acquired assets on theTexas and Louisiana Gulf Coast from Houston-based, privately held ERG Resources LLC for US$236 million.

The assets include 14 producing oil fields on 156 leases spanning 13,400 acres. Fields include Black Bayou, Port Neches, Hull, Barber's Hill, Goose Creek, Atkinson Island, High Island, Cedar Point, Lafittes Gold, Aquarium, Hoskins Mound and Grass Island. Linc plans an enhanced oil recovery program using CO2.

Production is 3,300 barrels of oil per day. Net proved reserves are 20.5 million barrels of oil consisting of 4.5 million barrels proved developed producing, 4.4 million proved nonproducing and 11.6 million proved undeveloped. Proved and probable reserves are 22.3 barrels of oil.

Linc plans to open offices in Baton Rouge, La., and Houston. The majority of ERG's operational and office-based staff will work for Linc on the acquired assets.

Linc Energy chief executive Peter Bond says, "I hope to exceed 6,300 barrels per day the fourth quarter of 2012 on the ERG fields."

ERG, led by Scott Y. Wood, focuses on the onshore Gulf Coast and California.