AOC ready for Cali drilling

California drilling: AOC readies

Sydney-listed Australian Oil Company (AOC) is readying itself for the drilling of the Dempsey-1 well at the Sacramento basin, onshore California.

The well will be targeting 1 trillion cubic feet of gas at the Dempsey prospect, based on seismic and other wells drilled in the basin.

Because the well will be located on an existing drilling pad with a gas unit from which AOC sells gas, permitting is only expected to take 45 to 60 days.

Once this is approved, the well could spud by December or early 2015, depending on when a rig becomes available.

AOC is well advanced in finding funding for the well which could cost between US$4.5 million and US$5.5 million.

The Dempsey prospect is a simple titled fault block closure with seven different prospective zones.

Two of them are in existing field production reservoir zones, while five are in the underdeveloped Sacramento basin.

AOC managing director Gary Jeffery said the prospect gave the company good leverage in the area.

“The existing production equipment also facilitates early production revenue from a successful well,” he said.

“The interpreted presence of seven target reservoirs in the Dempsey Prospect increases the probability of a commercial success.”

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