Reports 30 Day Rates for Balder 1-30N
Sydney, June 20, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to announce an update on the 30 day production rates for the Balder #1-30N Horizontal Well at the Snake River Project, Kay County, Northern Oklhoma. The well continues to exceed expectations and the typical type curve for Mississippian Horizontal wells in the region.
During the first 30 days on pump the operator, Range Production Company LLC, a subsidiary of Range Resources Corporation (NYSE:RRC) reported that the well produced 18,210 barrels of oil and 50,825 mcf of gas. The average production for the period was 889 boe/day whilst maintaining a 70%/30% oil to gas ratio, with additional Natural Gas Liquids. Oil produced from the Mississippian is a light sweet crude of a 45 degree API gravity.
Executive Chairman of AOK, Richard Adrey commented, "We are excited about the ongoing development results here in Kay County. Clearly this result confirms that we are located in an exceptional part of the Mississippi Lime play east of the Nemaha Ridge which is delivering a high oil cut in both the horizontal and vertical wells. Whilst it is early days in our development cycle, the economics of this project are continuing to exceed our modelling.
We will continue to drill our vertical well program and have started to delineate a number of further horizontal locations within our acreage for future drilling".
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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