The Coalinga Prospect is situated just to the south of the Chevron owned and operated East Coalinga Extension oil field which has produced over a half billion barrels of oil from the Gatchell Sandstone. The block contains the Gatchell zone rights and is mapped as a separate field.
AOC will pay their ground floor earned share of the well plus their share of the prospecting fee to earn 32.81% of the prospect.
SCU #1-24 (previously NNG-Coalinga 1-24) is a 8,500 foot (2,600m) test and will commence drilling early next month. This well will evaluate the Gatchell sand prospect immediately south of hte East Coalinga Extension oil field which has proven reserves in the Gatchell of over 500mmbbls. The prospect is mapped as a separate field and could contain over 20 mmbbls of recoverable oil. Wells in the East Coalinga Extension initially flowed in excess of 4,000 bopd.
SGC Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
