Proactive Investors - Run By Investors For Investors

Australian Oil Company ups stake in Californian gas wells

Australian Oil Company ups stake in Californian gas wells

Australian Oil Company (ASX: AOC) has signed a binding Heads of Agreement with Blue Sky Energy and Power Inc to acquire a 15% interest in 8 gas wells and infrastructure in the onshore Sacramento Basin, Northern California.

This increases AOC’s working interest in the acquired assets to 55%. Consideration was US$220,000, and the acquisition will be effective from 1 January 2014.

At least three separate geologically-independent, high impact prospects have been mapped within the acquired leases, and the gas wells will also provide modest cash flow.

The operator of these wells estimates the remaining gas producible from these wells to be around 1 Bcf; at current gas prices the Net present value is over $1/mcf, or US$1 million.

The transaction is in line with consistent with AOC's strategy to increase exposure to the potential for a major discovery in conventional sandstone reservoirs in the Sacramento Basin.

AOC has also recently streamlined its assets to focus solely on highly prospective onshore California exploration opportunities, which includes a joint venture agreement with Xstate Resources (ASX: XST).

AOC is presently valued at around $12 million.

 

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.

View full SGC profile View Profile

Sacgasco Ltd Timeline

Newswire
September 05 2017
Newswire
March 17 2017
Newswire
February 03 2017

Related Articles

oil rig
May 08 2019
The NJOM3 well will be drilled to a total depth of 1,100 metres intersecting at least three reservoir zones
A map of Buru tenure in the Kimberley region of Western Australia's northwest
March 22 2019
Buru’s chairman Eric Streitberg will speak at an energy and minerals conference in Brisbane next Wednesday.
Gas flame
April 05 2019
POS-GRIP, invented by the company’s chief executive Ben van Bilderbeek, is designed to prevent gas leaks, particularly methane, in wellheads and other connectors

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use