By OGJ editors
HOUSTON, Sept. 12 -- California Oil & Gas Corp., Calgary, plans to take a farmout from March Resources Corp., Calgary, on the Pica North Block in the Tamarugal basin in northernmost Chile.
COGC has committed to drill two wells to casing point to earn a 50% interest in the block. It also has an option to obtain an interest in the Pica South Block. The blocks total 2.5 million acres in a nonproducing, frontier basin. Development rights are valid for 35 years.
March will contribute $1 million/well, with COGC responsible for the rest of the well cost to casing point. The first well is to spud by the end of 2006.
The initial prospect on Pica North may contain a resource of 86 bcf to 1.5 tcf of gas, consulting engineers estimated.