AJ Lucas Services Pty Ltd and the Lukas family have partnered with Ilwella Pty Ltd, the private office of the Flannery family, to form Luco Energy Pty Ltd.
Luco Energy has agreed to acquire Cypress Petroleum Pty Ltd, the Australian subsidiary of TAG Oil (TAO:TSXV) including its three Queensland tenements PL 17, ATP 2037 and ATP 2038.
These assets have potentially vast volumes of tight gas and condensate and are strategically close to infrastructure and the east coast gas market.
Platform for Australia’s Next Era of Oil and Gas
Australia’s tight gas time has come
Until recently, tight gas and shale gas have been neglected in Australia. This is largely because of the focus by the majors on delivering large scale commitments for their coal seam gas (CSG) programmes. Structural problems have resulted in an unnecessarily high cost of production for both conventional and unconventional gas on the east coast – leading to a lack of affordable supply. At last, after a decade of rapid development of tight gas reserves in the USA, Australia’s time has arrived. The best opportunity is to unlock the tight gas closest to the east coast infrastructure and market including the undersupplied Gladstone LNG facilities.
Luco Energy is assembling a portfolio of assets to deliver the next era of efficiency that will unlock multi-tcf of tight gas. Luco is the first Australian operator to apply the highly efficient approach of the US gas fields of lean overheads, self-performing delivery, technology and simply, a sense of urgency. Majors and others are starting to look at these plays; our strategic advantage will be our lower cost of production.
Luco Energy, Executive Chairman, Andy Lukas, a veteran of the Australian petroleum and gas industry, sees technology as the key,
"applying the demonstrated success of the US approach without mega-overheads is how to tackle tight gas.
The most successful US operators take ownership of the delivery of their projects and that's what we're doing through Luco.
The volumes we're dealing with, so close the existing pipelines and to Brisbane, is going to be a game-changer."
About AJ Lucas Services
Experienced Delivery-Focused Management
The AJ Lucas brand was established by the Lukas family in 1958. It has a rich history of projects in Australia and across Asia Pacific including China, Hong Kong, Indonesia and Papua New Guinea.
The Lukas family is no longer affiliated with the listed AJ Lucas Group (AJL:ASX) and
AJ Lucas Services Pty Ltd is now prosecuting independent specialist drilling and technical engineering services and Luco Energy Pty Ltd as a development business.
Key differentiator is providing services and development based on proven advanced drilling engineering and methodologies that utilise specialised, state-of-the-art equipment and technology. US technology which has created the natural gas boom in the US will be brought to the development of these tenements.
We offer a turnkey whole of project delivery which includes sub-surface and surface facilities. This model utilises multitasking of non-drilling support equipment and personnel reducing costs, reducing the number of people on site, and encouraging efficiencies.
Dependable delivery capability provides an avenue to access opportunities for upstream development and the ability to achieve superior returns.
The team is formed around Andy Lukas who has a 40-year track record. Internationally recognised as a pipeline construction expert and industry pioneer of horizontal directional drilling in Australia. Supported by long-serving senior executives across relevant industries.
Management’s promotion of past investments developing in the Gloucester, Surat, and Sydney Basins’ CSG fields translated $40 million investment into $400 million.
Strategy is to use services platform to replicate the nimble, technologically-savvy, independent E&P companies in the US that led to the discovery and development of unconventional gas fields and maximise value through vertically integrated infrastructure development.
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