Eba 1 is the second in a three-well campaign designed to target the Stuart Range, Boorthanna and Pre Permian formations which have never before been intersected at such a depth.

"The drilling has been slower than anticipated in this second well, simply due to the hardness of the formations we are drilling through at present," Linc chairman Peter Bond said.

"This slows down the rate of drilling but also has an effect of wearing out drill bits at a faster rate, which means loss of further time in changing these out."

The well is currently drilling ahead towards a total depth of 2500 metres, with the company continuously reviewing the well prognosis based on the lithology's intersected to ensure the well's primary objectives are met.

Once the well is drilled an extensive logging program will evaluate the hydrocarbon resource potential and aim to develop a critical understanding of Arckaringa.

Linc Energy holds more than 65,000 square kilometres within the Arckaringa Basin across seven petroleum exploration licences, with an application for an eighth in the works.

The company says its technical analysis of data obtained from wells drilled to date within the basin indicates that the formations encountered have excellent resource play potential with total organic carbon levels, permeability, porosity and thickness comparing favourably to prolific US unconventional petroleum plays.