Drilling Underway on Balder 1-30N Horizontal Well
Sydney, Mar 14, 2012 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (PINK:ATXDY) is pleased to report the following update on drilling operations in Northern Oklahoma.
Snake River Project - Balder #1-30N Horizontal Well
Section 30, Township 25 North, Range 1 East
Kay County, Oklahoma
AOK 12.25% Working Interest 9.5% Net Revenue Interest
Drilling of the Balder #1-30N horizontal development well commenced over the weekend. With an expected TFD of 9,600 feet including a horizontal section, this well is targeting the Mississippi Lime formation. The well is being drilled on a 320 acre spacing and is located directly west of AOK's recently completed Mississippi Lime producing wells. (To see Figure 1 - please refer to the link at bottom of release).
A subsidiary of Range Resources Corporation (NYSE:RRC), Range Production Company Inc., is the operator and holds the remaining working interest. Drilling of the well is expected to take up to 21 days.
Background
Range Resources Corporation holds interests in ~125,000 acres of oil and gas leases within the defined Mississippi Lime play. Being one of the first movers in the horizontal development of the play, Range Resources Corporation has gained valuable experience in driling and completing this type of well with multiple stage fracs. The economics of their wells are shown below in an excerpt from the Range Resources February 2012 Investor Presentation. www.rangeresources.com
Speaking from Tulsa, Executive Director of AOK, Richard Adrey commented, "We are extremely excited to be a working interest partner in this well with Range and look forward to working several such deals as part of our continuing program".
To view the complete AusTex Oil announcement, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-671232.pdf
About Australian Oil Company Limited
Australian Oil Company Limited (ASX:AOK) (OTCMKTS:SGCSF) is an Australian-based energy company focused on under-explored, recently over-looked, world class oil and gas opportunities near under-supplied markets. The Company is currently focussed on conventional oil and gas exploration and production in the Sacramento Basin in California. Australian Oil has a portfolio of natural gas and oil producing wells in addition to prospects and discoveries at various exploration and appraisal stages. AOK is in the process of evaluating the acquisition of oil and gas producing and exploration assets to enhance the Company's strategic needs and deliver shareholder value.
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