AusTex Announces NI 51-101 Independent Reserve Report
Sydney, July 3, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to release its Independent Reserves Estimates (Reserve Report) for the company's working interest in its oil and gas leases in Oklahoma and Kansas. The effective date of the report is 15 June 2012.
The Reserve Report was compiled by Denver based Integrated Petroleum Technologies Inc. (IPT), in accordance with the standards contained in the Canadian Oil and Gas Evaluation handbook and with the Canadian National Instrument 51-101. A summary of oil and gas reserves by category is as follows:
----------------------------------------------------------- Oil Gas Undiscounted 10% NPV Reserves Reserves Cash Flow Cash Flow Net Net (M$) (M$)* (Mbbl) (MMscf) Reserve Category-----------------------------------------------------------Proved 252 657 16,150 10,926-----------------------------------------------------------Proved non-producing 113 113 9,119 6,549-----------------------------------------------------------Proved undeveloped 2,736 3,776 156,062 79,241-----------------------------------------------------------TOTAL PROVED (1P) 3,101 4,546 181,331 96,716-----------------------------------------------------------Probable undeveloped 1,803 1,736 103,801 61,751-----------------------------------------------------------TOTAL PROVED + PROBABLE (2P) 4,904 6,282 285,132 158,467-----------------------------------------------------------Possible undeveloped 6,386 6,254 375,995 230,365-----------------------------------------------------------TOTAL PROVED + PROBABLE + POSSIBLE (3P) 11,290 12,536 661,127 388,832-----------------------------------------------------------
Executive Chairman Richard Adrey commented: "This Independent Reserve Report confirms the substantial unrealised value of AusTex's assets in Northern Oklahoma and Kansas. It also highlights the potential uplift in value we can achieve by delivering more wells into production. With a number of new vertical wells expected to come on stream in the coming weeks at our Snake River Project, and with an ongoing well development program occurring through to December, we expect a significant increase in reserves and oil production from this point onwards.
With major oil and gas companies such as Range Resources Corporation and Apache Corporation recognising the value of their nearby acreage in the Mississippi Lime Play, this further validates that we are in the right locations.
Our priority and investment focus in the immediate term is to continue to increase production from our well development program at Snake River, and augment this with increased exploration and production drilling activities in Kansas.
With production currently averaging 300 boe/day we are confident of an uplift in monthly production as we bring new wells on stream."
The Reserve Report has been prepared to assist the company for its proposed dual listing on the Toronto Stock Exchange. AusTex will update shareholders on its exploration and development activities in the coming weeks.
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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