Australian Oil's subsidiary Los Alamos Oil (LOA), has entered into a farmin agreement for leased area measuring around 12.5km2 in California, US.
According to the agreement, LOA will pay 75% of the cost of a completed producing well to earn a 75% interest in the total leased area which located in Los Alamos, Santa Barbara County.
On repayment of the cost of drilling and completing the well, LOA’s interest will reduce to 56.25%.
LOA has scheduled to drill the well to a depth of 12,000ft in September.
LOA has also an option to farmin into an additional 7.2km2 area adjacent to the leased area.