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Ambassador Oil & Gas www.ambassadorexp.com.au/index.html

Ambassador Oil & Gas (ASX: AQO) is an oil and gas explorer with exploration permits in the South Australian Cooper Basin.

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Ambassador Oil & Gas sees signs of oil at first Cooper Basin exploration well

Ambassador Oil & Gas (ASX: AQO) could be on track to enjoying early success with its first exploration program, with the Shocking-1 well in the Cooper Basin encountering good oil shows.

The company and partner Senex Energy (ASX: SXY) are now preparing to carry out a drill stem test to acquire the oil shows in the first primary target, the McKinlay Formation.

Oil shows were also noted in another primary objective, the Murta Formation.

Shocking-1 is currently at a depth of 1394 metres and drilling is expected to resume towards the planned total depth of 1700 metres once drill stem testing is completed.

The Shocking-1 well is located just 1.8 kilometres north of operator Senex’s producing Vintage Crop-1 well and 65 km southeast of the Moomba oil and gas processing facility.

This allows the well to be commercialised quickly in the event of a success.

Considerable upside also exists at Shocking-1, with the structure mapped at holding potential recoverable oil of more than 500,000 barrels from the Murta, McKinlay and basal Birkhead/Hutton formations, all well-known oil producing horizons in the Cooper basin..

The Century Rig 3 is expected to take about 14 days to drill the well.

Following testing, it will then move to drill the second Ambassador well, Kruger-1, which targets 380,000 barrels of oil.

Under the farm-in agreement, Ambassador will pay 100% of drilling costs to earn a 60% interest in each successful prospect. Senex holds the remaining 40%.

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