AusTex Oil Limited (ASX:AOK) Quarterly Activities Ending 31 March 2010
Sydney, May 3, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) releases Quarterly Activities and Cash Flow Report ending 31 March 2010.
1. Operations
Revenue from operations for the quarter was $AUD683,058 net to AOK after royalties to mineral owners and taxes. During the three months ending 31 March 2010, cash expended for exploration and project development was $AUD1,036,000. Cash on hand at end of quarter was $AUD2,123,000. The company has no debt.
1.1. 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).
1.1.1. Lancaster Lease Group - Tulsa County - 650 acres
AOK - 100% Working Interest (WI); 81.25% Net Revenue Interest (NRI)
Development continued on the lease group with the successful drilling and completion of the Mayo Moore #7 well. This well is located 50 feet from the Mayo Moore #5 and was drilled to test the shallower Big Lime and Oswego Formations. Production from the well began in late March at a rate of 10 barrels of oil per day and 50,000 cubic feet of gas per day. With a total depth of 1,135 feet and an investment of $US108,000 the well has demonstrated additional production is available from the shallow limestone formations.
The Baggett #1-33 and #2-33 wells were also completed for production in the Red Fork formation at 1,550 feet. Initial production from the #1-33 well was 78 barrels of oil per day on pump, with the #2-33 flowing 5 barrels of oil per day and 250,000 cubic feet of gas.
At the time of this report the drilling of the Baggett #3-33 had commenced and is targeting the Red Fork, Tanaha, Wilcox and Arbuckle Formations with an expected total depth of 2,500 feet.
1.1.2. Sweet Lease - Pawnee County - 240 acres
AOK - 100% WI; 82.5% NRI To assist with development planning of the lease, the J & O #1 Well, was deepened from 2,930 feet to 3,230 feet. During drilling operations, oil and gas were displaced to the surface. Logs indicated the well intersected an additional 13 feet of net pay in the Lower Red Fork formation between 3050 feet and 3076 feet and 40 feet of net pay in the Bartlesville Formation. The well has been completed in the Bartlesville Formation for oil production with a high capacity submersible pump with production testing underway at the time this report was completed. The Sweet #4A and Sweet #5A are also completed for production in the Bartlesville formation.
1.2. 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 majority working interest partner with Castle Resources Inc. (CVE:CRI), as operator, a private oil and gas operator based near Hays, Kansas.
1.2.1. Cooper Project - Sheridan County - 26,500 acres
AOK - 53% Working Interest - 46% Net Revenue Interest The Clark #1 well was completed during January with an initial production rate of 250 barrels of oil per day from the Topeka Formation. Flow testing of the deeper Lansing-Kansas City formation resulted at 230 barrels of oil per day with 70 barrels of water. Permits are in hand to drill 3 additional development wells on the lease. The Clark SWD (Salt Water Disposal) well has been completed and certified as a water disposal well for the lease. The operator plans to produce from both formations in the Clark #1 well now that the water disposal system is in place. At the time of this report drilling on the Clark #3 well was underway.
1.2.2. McCracken Project - Rush County - 3200 acres
AOK - 63.92% Working Interest - 52.4% Net Revenue Interest During March, the Eisenhour #1 well was drilled to a total depth of 4100 feet. Oil shows were detected in the Cherokee Formation between 3970 feet and 4009 feet, however, these were determined to be non commercial. The well was plugged and abandoned. Further geophysical interpretation is ongoing with technical staff meeting in Kansas during May 2010 to discuss the next steps on this project.
2. Corporate Activity
On 24 March 2010, AOK announced a fully underwritten non renounceable rights issue to be offered to eligible shareholders. Funds from the rights issue will be used to expedite the development of the Company's' oil and gas lease interests in Kansas and Oklahoma.
3. Lease Operating Schedule - 31 December 2009
----------------------------------------------------------Lease Name Acreage WI NRI County, StateLancaster and surrounds 650 100% 81.25% Tulsa, OK----------------------------------------------------------Sweet 240 100% 82.5% Pawnee, OK----------------------------------------------------------Crisler 80 100% 84.375% Creek, OK----------------------------------------------------------Gypsy/Walker Project 80 100% 81.25% Creek, OK----------------------------------------------------------BlueHawk Project 160 50% 42.5% Osage, OK----------------------------------------------------------Cleveland Project 160 100% 82.5% Creek, OK----------------------------------------------------------Cooper Project 26,500 53% 43% Sheridan, KS----------------------------------------------------------Jewel Jewel and MitchellProject 35,000 30% 28.8% KS----------------------------------------------------------McCracken Project 3,200 50% 42.25% Rush and Ness, KS----------------------------------------------------------Beltz Project 160 40% 33.8% Ellis, KS----------------------------------------------------------
For the complete AusTex Oil Limited Quarterly Activities and Cash Flow Report, please click the following link:
http://www.abnnewswire.net/media/en/docs/62768-ASX-AOK-590937.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.
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