The company yesterday said Comet Ridge USA secured the interest and operatorship of a 4678-acre leasehold over part of the oil field in southern Colorado for $US650,000 ($A874,300).
Located about 140km south of Denver and 40km west of Pueblo, the Florence oil field has produced about 15 million barrels of oil since its discovery in 1862.
Comet said it would target recoverable oil reserve potential of between 1 and 2 million barrels with “substantial exploration opportunity” existing in the Niobrara Formation and deeper targets.
“The underlying Niobrara Formation has proven productive but is very lightly explored,” the company said.
“Comet’s intention is to apply 3D seismic to identify fractured areas within both the Pierre Shale and the Niobrara and then use directional or horizontal drilling to maximise the number of fractures encountered in the well bore.
“The potential of deeper reservoirs in the section remains largely untested.”
Comet said it would offer Strike Oil and AJ Lucas Group, its Australian partners in its Rocky Mountain joint venture, the opportunity to take up 33.3% of the available interest in the Florence deal.
Under the agreement, drilling operations are required to begin by August 1,
2007.
