viewSacgasco Ltd

Australian Oil Company, Xstate Resources farm out gas prospects in California


Australian Oil Company (ASX:AOC) and Xstate Resources (ASX:XST) have signed a farm-out agreement with Northern Gulf Petroleum (NGP), which will fund drilling of two gas prospects in California’s Sacramento Basin.

The Alvares and Dempsey prospects have gross unrisked best estimate recoverable prospective resources of 2.4 trillion cubic feet (tcf) and 1Tcf of gas respectively.

NGP will earn a 50% interest in the prospects by funding up to US$4.6 million for the Dempsey Exploration and US$10 million for the Alvares Appraisal Prospects.

AOC and Xstate have the option to increase their working interests in these prospects and are expected to have a 30% and 12.5% working interest respectively in each prospect following drilling.

NGP will also subscribe for 13,529,651 shares priced at $0.12 in AOC, or about 15% of the company, to raise about $1.6 million.

AOC will use the proceeds for acquisition of additional working interest in California, including additional working interests in the Dempsey and Alvares Prospects in the Sacramento Basin prior to farm-out, and working capital.

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.

Quick facts: Sacgasco Ltd

Price: 0.014 AUD

Market: ASX
Market Cap: $3.79 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Full interview: GlobeX Data looking to bring cyber security platform to...

GlobeX Data (OTCQB: SWISF- CSE: SWIS) President and CEO Alain Ghiai joined Steve Darling from Proactive Vancouver to discuss the company signing a deal with a conglomerate that represents some 2000 cybersecurity resellers in Latin and Central America. Ghiai telling Proactive this will see...

53 minutes ago

2 min read