AusTex Oil Limited (ASX:AOK) Quarterly Report For The Period Ended 31 December 2009
Sydney, Feb 2, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (PINK:ATXDF) is pleased to provide a Quarterly Activities Report for the period ended 31 December 2009.
Operations
Revenue from operations for the quarter was A$356,000 net to AOK after royalties and taxes. During the three months ending 30 September 2009, cash expended for exploration and project development was A$2,001,000.
Oklahoma
AusTex Oil Limited owns and operates a number of oil and gas leases in Oklahoma through its wholly owned subsidiary, International Energy Corporation (Oklahoma) (IEC-OK). Field operations during the quarter focused on the Lancaster Lease Group, Tulsa County.
Lancaster Lease Group - 650 acres
AOK - 100% Working Interest (WI); 81.25% Net Revenue Interest (NRI)
Phase II of development drilling commenced in the 3rd week of September 2009. As at 31 December, 8 wells had been successfully drilled and 4 wells were completed for oil and gas production. Logs and samples have identified multiple hydrocarbon zones. The Baggett #1 and #2 wells are waiting final electrical and flow line connections before being put into production. The Lancaster #5A and Mayo Moore #3 wells are being completed as injection wells as part of the reservoir management plan.
Drilling on the east side of the lease group on the 160 acre Mayo Moore Lease, has encountered reservoirs at virgin pressures with free oil flowing to surface by gas expansion drive in the Red Fork and Tanaha Formations. Engineering staff are modifying the development plan using best reservoir management practice to conserve reservoir energy and ensure maximum productive life of the wells. The objective is to optimise production levels as well as ultimate recovery. As a result flush production rates have been choked back until a gas stripping plant and water and gas injection facilities are in place.
A number of proposals for a gas stripping plant have been received and AOK Management expects to make a final decision in the coming weeks. It is planned to lease the equipment required with a monthly investment of no more than $US5000 per month. Initial modelling indicates that for each 280 thousand cubic feet of gas treated 10 to 15 barrels of natural gas liquids could be extracted, depending upon configuration, pressures and temperatures. Treated gas would then be re-injected into the reservoir, or sold. At the time of this report production from the Lease was being capped at 90 bopd and 420 mcf/d.
Kansas
AusTex Oil Limited holds interests in oil and gas leases located in the State of Kansas through a wholly owned subsidiary International Energy Corporation (Kansas). The company is the major working interest partner with Castle Resources Inc., as operator, a private oil and gas operator based near Hays, Kansas.
Cooper Project - Sheridan County - 26,500 acres
AOK - 53% Working Interest - 46% Net Revenue Interest A review of seismic data using well log information was completed in Kansas during November 2009. As a result of re-calibration, new mapping was finalised by the consulting geophysicist. The Clark #1 well reached total depth of 4128 feet in the second week of December. Two formations, the Lansing-Kansas City at 3838 feet and the Toronto at 3826 feet were tested for oil production. The Lansing-Kansas City produced 230 bopd and 70 bopd of water during testing and the Toronto produced at over 250 bopd with no discernable water. At the time of this report the well has been completed for production in the Toronto Formation and is producing at 250 bopd. An application to recomplete an old well south of the Clark as a water disposal well has been lodged. The operator plans to produce from both horizons in the Clark #1 once the water disposal facilities are in place. Permits for an additional three step out wells have been granted. A four way closure was mapped at this location at over 600 acres.
Jewel Project - Mitchell and Jewel Counties - 35,000 acres
AOK - 30% Working Interest - 28.8% Net Revenue Interest Drilling of the wildcat McKinnie #1 reached total depth of 4,670 feet during the 3rd week of October 2009. Samples and logs confirmed shows of both oil and gas with non-commercial oil quantities present in shallow reservoirs. Gas in the Precambrian formation appears to be in commercial quantities. The well has been plugged without casing and may be re-entered once engineering studies and development plans have been completed. The logs confirmed the presence of the Heebner, Lansing-Kansas City, Cherokee Mississippi Limestone, Hunton, Viola Limestone, Simpson, Arbuckle Limestone, Reagan and Precambrian formations, which are known oil and gas reservoirs in Kansas. Arrangements are being made to run 2D seismic across an area of 3 miles north and south of the well site to identify if any structural relief is present.
Corporate Activity
During the quarter, Aegis Equities Research completed a commissioned Analyst Report for AOK. A copy of the report is available on the Company's website, www.austexoil.com, under "Reports and Announcements", "Analyst Reports" section. AOK also invested in a site visit for a group of Australian and North American brokers and analysts, who visited Tulsa during November 2009. This caused a one-off increase in administration expenses incurred during the quarter.
During October, a placement of 3,200,000 fully paid ordinary shares raising A$320,000 was finalised with parties associated with Novus Capital Limited.
Lease Operating Schedule - 31 December 2009----------------------------------------------------------------Lease Name Acreage WI NRI County, State----------------------------------------------------------------Lancaster andsurrounds 650 100% 81.25% Tulsa, OKSweet 240 100% 82.5% Pawnee, OKCrisler 80 100% 84.375% Creek, OKGypsy/WalkerProject 80 100% 81.25% Creek, OKBlueHawk Project 160 50% 42.5% Osage, OKCleveland Project 160 100% 82.5% Creek, OKCooper Project 26,500 53% 43% Sheridan, KSJewel Project 35,000 30% 28.8% Jewel and Mitchell, KSMcCracken Project 3,200 50% 42.25% Ness, KSBeltz Project 160 40% 33.8% Ellis, KS----------------------------------------------------------------
For the complete Austex Oil Quarterly Report for the period ended 31 December 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/62198-ASX-AOK-580886.pdf
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.
| ||
|
