AusTex Oil Balder 1-30N Horizontal Well Update
Sydney, April 23, 2012 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (OTCQX: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 13.73% Working Interest 11.15% Net Revenue Interest
The operator, Range Production Company Inc., reports that the Balder #1-30N horizontal well was successfully hydraulically fractured and is currently flowing back fluid. The well is being tied into onsite storage facilities for production testing.
As previously report the well reached a TMD of 8,952 including a 3,911 foot horizontal section in the Mississippi Lime formation. The horizontal section was stimulated with a 19 stage frac completed over two days of operations.
Range Production Company Inc., a subsidiary of Range Resources Corporation (NYSE:RRC), is the operator and holds the remaining working interest.
RRC has produced a typical type curve and economics based on previously drilled wells adjacent to the Balder #1-30 N. Estimated Ultimate Recovery (EUR) per well is between 400,000 BOE to 500,000 BOE comprising 70% liquids. With a drilling and completion cost of ~$3.1m, their wells show an internal rate of return of between 90% to 105% using a $100 oil price model on the above EURs (Please refer to Figure 1 below).
Managing Director of AOK, Daniel Lanskey commented, "Our participation in this well with Range has provided a substantial amount of additional reservoir knowledge and is another step in derisking the Snake River Project development. This information has provided us with a greater certainty of success as we continue our development drilling with additional vertical wells underway. As this was the first horizontal well we have been involved in, we took a low risk approach by working with Range, who have been in full scale development in the area for over a year. We are continuing our discussions with other Companies regarding participation in additional horizontal wells. Our goal is to substantially increase our production in this project over the coming months".
Further updates will be made when production testing commences.
For the complete AusTex Oil announcement including Figure 1, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-675826.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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