Xstate Resources (ASX:XST) has spudded the Shea-Dividend-1-8 exploration well at its West Brentwood prospect in California.
The well will be directionally drilled to a true vertical depth of 1,220 metres from a central drilling area and is expected to take 8 days to determine if hydrocarbons are present.
The latest drilling well will target the highly productive Anderson Sandstone with two other locations also permitted to drill from the same central location.
All three prospects are estimated to contain up to 500,000 barrels of recoverable oil each, with natural flow rates of 200‐500 barrels of oil per day per well.
Xstate will earn a 16.67% working interest in the 340 acre West Brentwood prospect by paying 25% of the first US1 million spent on drilling and thereafter pay its earned working interest share of 16.67%.
The original West Brentwood farm-in deal also includes an Area of Mutual Interest covering about 3,000 acres of high quality seismic data. An additional 7 drillable prospects have been identified on this data set.
The West Brentwood Prospect Area is located 50 kilometres east of San Francisco and just west of the Brentwood oil and gas field which has produced over 8 million barrels of oil and 60 billion cubic feet (Bcf) of gas and adjacent to the West Brentwood fields which have produced approximately 3 MMbbl of oil and 9 Bcf of gas.
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