Linc Energy (ASX:LNC) Alaskan Gas Exploration Program Shows Commercial Gas Potential

Brisbane, Nov 18, 2010 AEST (ABN Newswire) - Linc Energy (ASX:LNC) (OTCQX:LNCGY) is pleased to report that it has completed the drilling of the LEA #1 exploration well in the Point Mackenzie Block of the Cook Inlet Basin in Alaska, USA.

The well was drilled to a total depth of 6,323 feet into the basement volcanic rocks. LEA #1 encountered a number of gas bearing horizons and 7" casing has been run and cemented. This will allow Linc Energy's technical teams to plan a testing program to evaluate the potential for commercial gas production from the prospect. A number of significant coal seams were encountered as expected. Coal is recognised as the source rock for all the gas discovered and produced from the prolific Tyonek, Beluga and Sterling formations in the Cook Inlet Basin.

Linc Energy CEO Mr. Peter Bond said "In light of the fact that Linc Energy took over these Leases in June, it is an exceptional result that by October, our team planned and permitted a drill site, built the pad, contracted the rig and spudded the LEA #1 well. The safe completion of the well to depth, within budget and time is also a fantastic outcome. It will now take our team about a month to conduct the relevant tests upon LEA #1 to define a commercial outcome. I am very excited about the opportunity that Alaska offers, particularly for the potential for early cashflow to Linc Energy."

In addition to testing at LEA #1, Linc Energy will now prepare for phase two of its Alaskan natural gas drilling program in its Trading Bay Block leases which are located on the northwest side of the Cook Inlet approximately 70 miles from the site of LEA #1.

Contact

Information for Media: Greg Meyer Media Manager Phone: +61-7-3229-0800 E-mail: greg.meyer@lincenergy.com.au ASX Contact: Craig Ricato Director, Legal and Corporate Affairs Phone: +61-7-3229-0800 E-mail: craig.ricato@lincenergy.com.au Information for Investors: Anton Rohner Chief Financial Officer Phone: +61-7-3229-0800 E-mail: anton.rohner@lincenergy.com.au