California: Monterey exploration outlined

By OGJ editors
HOUSTON, Feb. 18
– Alamo Creek Oil LLC of California has acquired 4,068 acres at Porter Ranch in San Luis Obispo County northeast of Santa Maria, Calif., where it proposed to explore for oil in the Miocene Monterey formation.

The former Phillips Petroleum Co. briefly explored the leases in the 1980s, drilled one well, built roads and two well pads, and exited due to depressed oil prices. No further exploration has occurred there. The leases contain two anticlines.

The 1984 Phillips well tested oil from three zones before encountering drilling problems and was plugged. Alamo Creek is evaluating the economics of redrilling the well.

Alamo Creek is 45% owned by United Hunter Oil & Gas Corp., Toronto, 45% by Australian Oil Co., and 10% by Calog LLC, a subsidiary of AOC. UHO said it is in advanced talks to lease a further 4,982 acres.

United Hunter and AOC have also proposed to develop Monterey oil with hot water injection at Huasna field just northwest of Porter Ranch.

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