Ambassador Oil and Gas spuds first of two Cooper Basin oil...

Ambassador Oil and Gas spuds first of two Cooper Basin oil exploration wells

Monday, June 25, 2012 by Bevis Yeo


Ambassador Oil and Gas (ASX: AQO) has spudded its first exploration well in the Cooper Basin targeting more than 250,000 barrels of oil.

The Shocking-1 well is located just 1.8 kilometres north of operator Senex Energy’s (ASX:SXY) 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 any potential 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%.

http://www.proactiveinvestors.com.au/companies/news/30487/ambassador-oil-and-gas-spuds-first-of-two-cooper-basin-oil-exploration-wells-30487.html