VicPet increases stake in US oil project

With oil selling for $US35 a barrel and confident that a current testing program will significantly increase production, Victoria Petroleum has decided to increase its stake in the San Antonio Oil Project.

The junior explorer informed the market it will increase its stake in the San Antonio-1 well to 9.77% - this figure will be 7.325% after taking out production and drilling costs. In the remaining San Antonio lease area, the company will have a 5.53875% interest.

The second fracture stimulation and production testing program, designed to increase flow rates from the Vacqueros Sand, will continue for the next 14 days.

The San Antonio anticlinal prospect is a dual target oil prospect said to contain to up to 106 million barrels of recoverable oil in the target Vacqueros Sand and Monterey Shale horizons, according to VicPet.

The San Antonio Oil Project covers 3,940 acres and is located in Monterey County, California. Operator of the project is Trio Petroleum Inc.