(MENAFN - ProactiveInvestors - Australia) 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%.