AusTex Oil Limited (ASX:AOK) Provide An Update On Oklahoma Operations
Sydney, Mar 11, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) advises the following update on operations on leases in Oklahoma.
Lancaster Lease Group
- Well Completion Updates
-- Mayo Moore #7
-- Baggett #1-33
-- Baggett #2-33
- Drilling to commence on Ownby #1 well
Mayo Moore #7
Following completion and testing of the Oswego Lime which tested at 75 thousand cubic feet of gas per day (MCF/D), the well is also being completed in the Big Lime. Currently the Radial Jet Enhancement rig is onsite with laterals being cut on three separate levels of the formation between 902 feet and 908 feet. The well is expected to be completed this week with further production testing to follow.
Baggett #1-33
The well was originally completed for production in the Wilcox Formation at 2200 feet. The produced formation water was intended for pressure maintenance in the Red Fork formation, but proved incompatible with shallower formation fluids. Following chemical analysis a decision was made to plug the Wilcox formation and re-complete the well in the Red Fork formation at 1550 feet. Production testing of the well began yesterday with an initial production rate of 78 barrels of oil per day (BOPD).
Baggett #2-33
Since completion in the Red Fork formation during January 2010, the well has continued to flow oil and gas to the surface at a rate of 5 barrels of oil per day and 250 MCF/D of gas. The well will be fitted with a down hole pump as soon as the ground dries sufficiently to move a work over rig onsite.
Ownby #1 Well
Preparations for the drilling of the next step out well have been hampered by wet weather. The Ownby #1 well is located south of the Mayo Moore #1 and west of the Baggett #1-33 wells. The drilling contractor is on standby and drilling is expected to commence within 2 weeks. A planned total depth of 2500 feet will test the Arbuckle Formation and other known shallower formations.
Reservoir Management Plan
As part of the first stage of maintaining reservoir pressure in the Red Fork formation, water injection via the Mayo Moore #3 well has commenced. Further development drilling on the lease will determine the reservoir structure and additional injection wells are planned.
Following further review of proposals for a Natural Gas Liquid stripping plant, management of AOK has received final proposals from two vendors. A decision is expected later this week with a delivery time on the plant indicated at six weeks.
AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in this project.
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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