Reports Strong Flow Rates at Balder Horizontal Well
Sydney, May 28, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to report that it has received confirmation from Range Resources Inc (NYSE:RRC) that the Balder #1-30N horizontal well has commenced production with highly encouraging flow rates recorded in the first six days.
AOK holds a 14.15% working interest and an 11.15% net revenue interest in the well which is located on the western edge of AOK's East Tonkawa Unit, which is part of the Snake River Project in Northern Oklahoma. A 40 acre portion of Range's 320 acre well location is on AOK's project area. This is the first horizontal well in which the company has participated, and these initial production rates highlight the potential value and prospectivity of AOK's Snake River Project in the Mississippian Limestone Play.
AOK's Managing Director, Daniel Lanskey, said: "The well is still recovering the large frac load from 19 stages and may take another 2-3 weeks to stabilise. These are outstanding early production rates and give us added confidence in the Snake River Project. Not only do they increase our monthly production and revenue flows, they confirm that AOK may be sitting on a project with significant untapped potential for the company and its shareholders.
We are continuing to assess other participation opportunities in the same area as Balder #1, with a number of horizontal well locations being considered at Snake River. Participation in a horizontal well with Range Resources has increased the appeal and visibility of the Snake River Project, and we intend to capitalise on this further in the near term."
Mr Lanskey also added that drilling of the first vertical production well on one of the Blubaugh Leases, the Blubaugh #20-1 in the Snake River Project, reached TD overnight with logging operations underway. He said an active vertical well development program is well underway on the continguous Blubaugh leases.
"Very shortly we will have two rigs drilling vertical wells on the Snake River Project, with one rig continung to develop the Blubaugh leases as a second production hub on the north side of the river which bisects the project area. With conditional funding agreements in place and a growing revenue base, Austex is well placed to fast-track the development of new production wells from this point on. We will continue to update shareholders on our corporate and operational progress in the coming weeks."
To view the complete AusTex Oil announcement including Figures, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-680232.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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