AusTex Oil Limited (ASX:AOK) Rolf No.1 Well Production Testing Commences
Sydney, Feb 1, 2011 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) is pleased to announce the following update on operations in Kansas.
Castle Resources Inc. (CVE:CRI) (PINK:CUNCF), as operator, advises that production testing has commenced on the Rolf #1 Well, Ellsworth County, Kansas. The well was drilled during October 2010 to a Total Depth of 3,470 feet. Logs confirmed the presence of hydrocarbons in the targeted Lansing-Kansas City and Arbuckle Formations.
A second porosity streak in the Arbuckle Formation was identified and horizontal laterals were jetted into the formation using a truck mounted Radial Jetting Rig. This technology allows for horizontal radials to jet into pay zones from a vertically drilled well. After the application of the Radial Jetting Rig, the well swab tested at over 7,000 barrels of fluid with a 1% oil cut.
A special polymer treatment developed by Polymer Services Inc., a Kansas based service company, was applied to cut back water flow and the well was shut in for 4 weeks to allow the chemicals to set.
The operator reports that during the last 7 days the well has been pumped slowly at a rate of 43 barrels of fluid a day and is producing 39 barrels of oil per day. Further testing at this rate is continuing to ensure the polymer has set correctly.
AOK holds a 53% Working Interest and a 38% Net Revenue interest in this project located in Sheridan County, Kansas.
Background
The 3,000 acre Ellsworth Project is located in Ellsworth County, Kansas. The Rolf #1 well is the first well on the project to test the 2nd break in the Arbuckle Formation with this completions technique. Historical production in the area has been from the Lansing-Kansas City and the top of the Arbuckle Formation.
The Arbuckle Formation is a water drive zone with high water content. Castle Resources Inc., and Polymer Services Inc., have developed this completion technique using the Radial Jetting Rig and special polymer specifically for limestone formations.
Managing Director of AOK commented, "This is an exciting result. Historically the Arbuckle Formation in this region is well known for its long term oil production with a high water cut. With the application of modern technology we are hoping to demonstrate that oil production can be sustained without the need for high volume disposal wells. Whilst this is the first well completed with this method, the project presents many previously drilled locations with shallower production. AOK operates a truck mounted Radial Jetting Rig in Oklahoma, which has had recent success with completions in the Mississippi Chat formation in Northern Oklahoma. We are collaborating with Castle Resources to further refine the technology".
For the complete AusTex Oil Limited announcement including figure, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/65124-ASX-AOK-622371.pdf
About AusTex Oil Limited
AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is a Public Company listed on the Australian Securities Exchange (ASX) and the OTCQX.
AusTex is focused on exploration and development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas and is currently developing producing leases in both states with interests in 11,600 net acres of oil and gas leases in the Mississippi Lime Play. The Company has net production of circa 800 boe/day with Independent 1P reserves certified at 3.505 Million BOE with NPV10 of US34.8 million as at 31 December 2015.
US operations are based in Tulsa, Oklahoma, with an office at 1801 East 71st Street. International Energy Corporation (Oklahoma) is a wholly owned subsidiary and a licensed oil and gas operator in Oklahoma and Kansas.
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