Further Drilling Success - Snake River Project
Sydney, Dec 17, 2012 AEST (ABN Newswire) - United States mid-continent focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to advise the following update on oil and gas production from operations at the Company's 100% owned Snake River Project in Northern Oklahoma.
#21-2 Well interesects 354 feet of Mississippi Lime
Drilling operations on the Blubaugh #21-2 vertical well successfully reached TD at 4,802 feet over the weekend. The well intersected 354 gross feet of the target Mississippi Lime interval.
Logs and samples indicate the presence of hydrocarbons with 23% porosity in the upper Chat section and multiple intervals of porous lime ranging from 11-15% with the remainder of the Mississippi Lime solid exhibiting better than typical porosity ranging from 6-9% along with exceptional sample shows.
Casing has been run and cement set; with the well to be completed for oil and gas production.
The #21-2 well is the 9th vertical production well to be drilled at the Snake River Project utilizing infrastructure north of the river where the company is experiencing strong results through tweaking of its processes of stimulation and completion. The rig is to move onto the #21-1 well and expected to spud within next 2 days.
AusTex Executive Chairman Richard Adrey commented: "We have had a very successful year targeting the Mississippi Lime at our Snake River Project. During the calendar year, many larger US oil and gas companies have announced their increased activity in the play.
"As we enter a new year, we plan to continue drilling 2 vertical wells per month and have agreements with Range Resources to participate in up to 4 additional Horizontal Wells in the area."
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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