Drilling Success on Arbuckle Well at Ellsworth Project
Sydney, Dec 4, 2012 AEST (ABN Newswire) - United States focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) advises that drilling has reached Total Depth at the Ross #1 development well at the Ellsworth Project, Rice County, Kansas (AOK: WI 50% and NRI 38%).
Castle Resources Inc., as operator, advises that drilling on the Ross #1 well reached Total Depth of 3,375 feet on Thursday 29 November Kansas time.
Logs, drill stem tests and samples have confirmed the presence of hydrocarbons in multiple breaks of the Arbuckle Formation, indicating commercial quantities of oil.
Casing has been set and the well is to be completed for production testing over the coming weeks.
Executive Chairman Richard Adrey commented: "Whilst our primary focus is on development activity at the 100%-owned Snake River Project in Northern Oklahoma, there is considerable unlocked value in our Kansas portfolio and we believe a more active development program is now warranted to realise some of this value in both production and reserves.
"The results from the Ross #1 confirm that a ramp-up in exploration and development activity is proving to be a successful strategy, and we look forward to updating shareholders on the results from production testing and our forward work plans in Kansas. A number of major oil & gas companies have recently acquired acreage in Kansas which gives us further encouragement on this investment."
"In Oklahoma we are pleased to confirm that our vertical well development program remains on track, with two new vertical wells to be drilled this month, and six wells are in various stages of pre-production. Our horizontal well participation program with Range Resources is also meeting expectations, and we are eagerly awaiting flow rates from the Hod #1.
"AusTex is in excellent shape. We have cash reserves in excess of $10 million which funds our next and major phase of development, and we are now well-supported by a committed investor base which includes some of Australia's and North America's leading institutional investors."
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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