Daily Production Averages 500 boepd
Sydney, Oct 4, 2012 AEST (ABN Newswire) - United States focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to report that during the final week of September 2012 the Company achieved a key production milestone with an average oil and gas production of 500 barrels of oil equivalent per day.
The significant increase in average daily production was due primarily to the contribution of only two new wells coming on stream at the company's 100% owned Snake River Project in North Oklahoma.
The #20-1 vertical well achieved a 30-day initial production average of 95 boepd, and the #20-3 vertical well achieved a 7-day initial production average of 92 boepd.
AusTex is extremely encouraged by the performance of these two new production wells and the company confirms that the vertical well development program is continuing with six additional vertical wells now in various stages of development.
Of note, the #20-5 is being completed and connected to the tank battery this week. A further two vertical wells are expected to be drilled this month.
Executive Chairman Richard Adrey commented: "This production performance is an early confirmation of the consistent production we are likely to record from October onward, and it reflects the impact of our ongoing vertical well development program at Snake River.
"Of particular note is the performance of the #20-1 after 30 days. For some time we have been saying that we want to deliver wells into production that have more sustainable and consistent production rates and the #20-1 reflects this.
"Importantly, this production confirms that we are in the early stages of building a revenue profile which will help to fund AusTex's future growth.
"Shareholders should be aware that AusTex's production, while pleasing, is still in its infancy. With three vertical wells in the development phase, a further six vertical production wells to be drilled this calendar year, and a planned horizontal well participation program with Range Resources, we are confident that our production profile is only just being established."
View the full AusTex Oil announcement including the well status update, at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-698391.pdf
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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