Blubaugh 20 - 1 Vertical Well Success Snake River Project
Sydney, May 31, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to announce that the Blubaugh #20-1 production Well has been successfully drilled to a Total Depth of 4,844 feet. AOK holds a 100% Working Interest and a 81.25% net revenue interest in the Snake River Project which sits in the highly prospective Mississippian Limestone Play ("Mississippi Lime") located in Northern Oklahoma and Southern Kansas.
Blubaugh #20-1 is the first production Well on the prospect, and is located 80 feet from the disposal well. Logs and samples revealed multiple hydrocarbon bearing zones. The well is to be completed for production in the Mississippi Lime interval.
Drilling has also now also commenced on the second production well for the Blubaugh prospect (Blubaugh #21-3), with the rig drilling ahead at 3,140 feet with a planned TD of 4,850 feet.
AOK is particularly encouraged by the potential of the Snake River Project, with the Blubaugh Lease being just one prospective area within the 100%-owned project. The company is continuing to fast-track its aggressive drilling program.
AOK's Managing Director, Daniel Lanskey, commented: "The Blubaugh Leases on the north side of the river are being developed as a second production hub on the Snake River Project. We now have the Salt Water Disposal Well under completion along with the first production Well. The hydrocarbon shows from the Well confirm the extension of multiple zones to the north of our producing wells, and this gives us greater confidence that Snake River will be a signficant value and revenue driver for the company".
Mr Lanskey continued: "As we have previously stated, vertical well spacing of 40 acres allows for up to 100 production wells to be drilled in the Snake River project area, with an estimated ultimate recovery of up to 100,000 barrels of oil equivalent per well at a cost of approximately AU$650,000 per well."
"AOK's development plan remains active, and the company is positioned for continued production growth."
AOK will continue to update shareholders in the coming weeks on its exploration and well development activity.
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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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