Australian Oil Company (ASX: AOC) is preparing to announce results from drilling of the Shea –Dividend #1-8 well at West Brentwood, Contra Costa County, California, with the ASX granting the company a trading halt this morning, with its shares placed in pre-open.
The exploration well was directionally drilled to a true vertical depth of 1,220 metres from a central drilling area, and will only take around a week to determine if hydrocarbons are present.
In the March 2013 quarter the Australian Oil Company signed a Farmin Agreement to earn a 26.67% working interest in 340 acres in Contra Costa County.
Under the terms of the farmin agreement the company will pay 40% of the first US$1,000,000 spent on drilling activity (i.e. US$400,000) and thereafter pay it’s earned working interest share of 26.67%.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 8th May 2013.
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