logo-loader

Australian Oil Company spuds California oil well

Published: 22:30 25 Apr 2013 EDT

no_picture_pai

Australian Oil Company (ASX: AOC) has spudded the Shea-Dividend 1-8 well in California that could flow up to 500 barrels of oil per day from the highly productive Anderson Sandstone.

Two other locations also permitted to drill from the same central location, which are also expected to flow between 200 and 500 barrels per day.

All three prospects are estimated to contain up to 500,000 barrels of recoverable oil each.

AOC is paying 40% of the first US$1 million on drilling activity at the Brentwood prospect to earn its 26.67% interest.

Shea-Dividend 1-8 well has an estimated dry hole cost of US$700,000 (AOC share - US$280,000). An additional $US263,000 (AOC share – US$105,200) will be required for completion and tie-in costs in the case of drilling success.

The well will be directionally drilled to a true vertical depth of 1,220 metres from a central drilling area and is expected to take 8 days to determine if hydrocarbons are present.   

West Brentwood is located 50 kilometres east of San Francisco and just west of the Brentwood oil and gas field which has produced over 8 million barrels of oil and 60 billion cubic feet of gas and adjacent to the West Brentwood fields which have produced about 3MMbbl of oil and 9Bcf of gas.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

3 hours, 53 minutes ago