Australian Oil Company (ASX: AOC) plans to drill two onshore California wells, targeting oil and gas respectively, in the first half of 2014.
The gas prospect – a low risk appraisal of a major gas show well – could host between 600 billion and 3 trillion cubic feet of gas while the oil prospect targets more than 10 million barrels of crude at a location updip from tested oil.
Success will de-risk other prospects in the Sacramento and Santa Maria basins, which are prospective for gas and oil respectively.
The company had earlier this year acquired a 40% interest in seven producing gas wells in the Sacramento Basin, giving it cash flow, production infrastructure and access to 200 square miles of 3D seismic data.
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.