AusTex Oil Production Underway at Ludwick No. 1 Well - Kansas
Sydney, April 11, 2012 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to advise the following update on operations in Kansas.
AusTex Oil and Castle Resources Inc., as operator, are working interest partners under a Joint Operating Agreement in oil and gas leases in Ellsworth and Rice Counties, Kansas.
Ellsworth Project - 3,200 acres
AOK 50% Working Interest 38% Net Revenue Interest
Ludwig #1 Well
Section 35 - Township 19S - Range 10W
Rice County, Kansas
Castle Resources Inc., as operator, reports that production testing on the Ludwig #1 well are underway. As previously reported on 8 March 2012 a Drill Stem Test was conducted on a 51 foot section of the Arbuckle interval between 3,237 feet and 3,288 feet. During the one hour test 19.29 barrels of clean 42 gravity oil and a quantity of gas were recovered.
The well has now been completed for production in the Arbukcle interval with a rod pump fitted. During the last week production testing has been undertaken using a diesel generator to supply electricity to the pump. The well has operated for 8 hours each day over consecutive days and has produced 240 barrels of oil during each 8 hour period with no water produced. It is expected that a permanent electricity connection will be in place by the end of the month. In the meantime the well will continue to run each day for 5-8 hours on the diesel generator.
A review of the 3D Seismic data on the location indicates that there are another 3 well locations on the 4 way closure. The next well is scheduled to spud on April 28.
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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