AMG Oil spuds Arcadia-1 well in New Zealand's Canterbury basin
AMG Oil Ltd. has spudded the Arcadia-1 well in New Zealand's Canterbury basin to test a large structure. It also will assign a 20% interest in the northern area of the Canterbury basin petroleum exploration permit 38256 to Durum Consolidated Energy Corp.
AMG Oil Ltd., Calgary, spudded the Arcadia-1 well Nov. 12 to test a large structure that it claims could contain an oil and gas trap encompassing more than 15,000 acres. The well is expected to reach its target of 6,000 feet in 2 weeks.
The Arcadia is in the North Area of the 1.3 million-acre permit 100 miles from the recently drilled Ealing-1 well. AMG said the Arcadia is in a separate geological area from the Ealing prospect and the block contains a number of untested prospects and leads.
AMG is assigning a 20% interest in the northern area of its onshore Canterbury basin permit 38256 to Durum Consolidated Energy Corp. in exchange for $400,000 (US). Durum will reimburse AMG a portion of past exploration costs, and contribute 40% to the cost of drilling of the Arcadia-1.
The area includes 785,000 lightly explored acres and contains a number of prospects and leads, of which Arcadia is the best-defined prospect, said AMG.
Following completion of funding obligations by Durum and AMG on the Arcadia-1 well, interests in the North Area permit will be AMG Oil Ltd., with 50%; Durum Consolidated Energy Corp., with 20%; Indo-Pacific Energy Ltd., with 20%; and Orion Exploration Ltd., with 10%.