Mississippi Lime Development Update
Sydney, June 28, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to announce that it continues to fast-track its well development program on its 5,500 acre Snake River Project in Oklahoma. AOK holds a 100% Working Interest and an 81.25% Net Revenue Interest in the Snake River Project which sits in the highly prospective Mississippian Limestone Play.
Production Hub 1 - East Tonkawa Unit
ETU #17-6 Well
The company is pleased to report that the ETU #17-6 vertical production well has successfully been hydraulically fractured in two stages and is expected to be on pump within the next week. The well is currently flowing back and installation of surface equipment and flow lines is underway. Recent drilling on the well reached a Total Depth (TD) of 4,680 feet. The well was deepened through 350 feet of the Mississippi Lime interval and had oil shows in the samples and in the pits during drilling. The well has been completed for production from the Mississippi Lime interval.
ETU #14-7 Well
The frac tanks and associated equipment have now been moved to ETU #14-7 production well with a frac date scheduled in the first week of July. The well reached a TD of 4,674 feet and encountered 375 feet of the Mississippi Lime interval and is to be completed for production in the Mississippi Lime.
Once both wells are completed, AusTex will have three producing vertical wells and one horizontal well in the Production Hub 1 area.
The company is also in the process of assessing additional participation opportunities in horizontal wells following the success of the Balder #1 production well in partnership with Range Resources (NYSE:RRC).
Production Hub 2 - Blubaugh Lease
The well development program at Production Hub 2 on the north side of the river is also continuing, with drilling of a third well commencing next week. The location of this well is currently being surveyed.
AOK's Executive Chairman Mr Richard Adrey said: "Our well development program at both production hubs in the south west portion of the Snake River are well on track. We are very encouraged by our recent production numbers and as stated our aim is to significantly increase production in the short term".
"With the development of two production wells each month at Snake River, and a ramp up in exploration activities in Kansas, we are confident that we can achieve growing and sustainable production from this point onwards."
AOK will update shareholders on its drilling program in Oklahoma and Kansas in the coming weeks and the status of well completion activities at Snake River.
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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