AusTex Oil Production Update
Sydney, Sep 24, 2012 AEST (ABN Newswire) - United States focused oil & gas produer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to report stable production rates for July and August from its operations in Oklahoma and Kansas.
Average daily production levels for July and August have stabilised at levels in line with management's expectations.
In the last 60 days, AusTex has brought 2 vertical wells on pump, a further 3 vertical wells have been drilled, fracced and are awaiting completion with 2 wells to be fracced, one of which is to be done overnight. This rate of development is expected to deliver a significant and material increase in production rates from October onwards.
Such an active well development program has required intermittent field shutdowns as construction of new surface infrastructure for new vertical wells has been built and commissioned. This results in lower gross monthly production levels in the short term to facilitate a medium to longer term growth in production.
AusTex's management team is confident that such an active well development program will lead to a significant increase in production in the near term. This is evident from the average daily production which increased to 408 barrels of oil equivalent per day for the week ended 21 September. This is a result of only one new vertical well, the Blubaugh #20-1, coming online during that week.
AusTex is also pleased to report that last week, gas sales from Production Hub #2 at the Snake River Project have commenced. Currently the Blubaugh #20-1 well is the only well on production from this hub, and during the last week it averaged 81 barrels of oil and 180 mcf/gas per day (~110 boepd) with a peak rate of ~160 boepd (80% light oil - 45 specific gravity plus NGLs and high BTU gas).
Executive Chairman Richard Adrey commented: "Production rates for July and August are in line with our expectations, and while we expect an increase in current monthly production in September, the real benefits of our active vertical well development program will be evident from October onwards when we expect a large increase in production.
Given we are developing so much surface infrastructure to bring these new wells into production, one of the short term trade-offs is that we have to temporarily shut down some wells while we carry out these works. AusTex is currently in the most active well development program in the company's history, and temporary interruptions are expected as we ramp up production. We are confident that our strategy is the right one and the benefits are now beginning to show."
AusTex will continue to update shareholders on its vertical well development program in Kansas and Oklahoma, and the company confirms that the first of four new horizontal wells in which it is participating with Range Resources Corporation (NYSE:RRC) is scheduled to spud next month.
---------------------------------------Month Total Average Daily Production BOE Production---------------------------------------April 4,985 166May 5,300 170 June 8,980 299 July 8,227 265August 8,520 275---------------------------------------
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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