Chinn Exploration will be the operator of the project and has contracted with Coastal Drilling Company to drill the initial well to the primary Frio Sand target at approximately 13,800ft.
Should geologic conditions warrant, the well could be drilled to a total permitted depth of 18,000ft, according to the company.
The KMF 64-1 No. 1 is located on a 1,043 acre oil & gas lease obtained from the Kenedy Memorial Foundation (Lessor) by Strategic American Oil in 2009.
The prospective Frio Sands and anticlinal structure were identified in-house through detailed evaluation of 303sq miles of 3D seismic data.
The company believes that the multiple Frio sands identified in the seismic profile is expected to contain substantial gas reserves.
Strategic American Oil will assign the operatorship to Chinn Exploration Company, a fully licensed and bonded Texas oil and gas operator.
Chinn was assigned 81.25% of the working interest in return for paying all drilling costs, estimated at $3m, and will pay $200,000 to Strategic American Oil for leasing, land and geophysical work.
