Linc reported that the well was drilled to a total depth of 6,323ft into the basement volcanic rocks.
The LEA #1 well encountered a number of gas bearing horizons and 7" casing has been run and cemented.
A testing program to evaluate the potential for commercial gas production from the well will now be undertaken, and as expected, a number of significant coal seams were encountered.
Coal is recognized as the source rock for all the gas discovered and produced from the prolific Tyonek, Beluga and Sterling formations in the Cook Inlet Basin.
In addition to testing LEA #1, Linc Energy has stated that it will now prepare for phase two of its Alaskan natural gas drilling program in the Trading Bay Block leases which are located on the northwest side of the Cook Inlet approximately 70 miles from the site of LEA #1.
Under the terms of its purchase and sale agreement with Linc, GeoPetro will receive $4m from the proceeds of the first 75% of 8/8ths of the oil and gas production produced from or attributable to the Alaska Leases.
After GeoPetro has received the $4m payment, it will thereafter receive an overriding royalty interest of 10% of 8/8ths of the proceeds of oil and gas production produced from or attributable to the Alaska Leases.
