AusTex Oil Limited (ASX:AOK) Advises The Mayo-Moore #8 Enhanced Recovery Well (ERW) Is Under Completion, Drilling To Commence On Baggett #33-4 Well
Sydney, July 13, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK), advises that drilling of the Mayo Moore #8 ERW (Enhanced Recovery Well)has been completed on the Lancaster Lease Group, Tulsa County, Oklahoma. This is the first well permitted and drilled specifically for water injection into the producing Red Fork and Tanaha formations as part of the reservoir management plan. A number of injection wells will be drilled over the coming months in addition to new production wells. This will ensure maximum recovery and life span of oil and gas production from the lease.
The well is located between the Mayo Moore #1 and Mayo Moore #2 wells, which are producing oil and gas from the Red Fork formation on the east side of the lease. This is the 12th well being drilled on the eastern side of the lease-group since development drilling began in September 2009.
Drilling to commence on Baggett #33-4 well
Drilling of the Baggett #33-4 is scheduled to commence this week, weather permitting. The well is targeting the Red Fork and Tanaha formations and is the 4th well on the Baggett Lease on the eastern edge of the lease group.
Drilling operations are expected to take between 3 and 5 days with a planned total depth of 2,500 feet.
Reservoir Management Plan Update
As previously reported, drilling on the eastern side of the lease group has encountered reservoirs with virgin pressures in the Red Fork and Tanaha formations. The Red Fork formation is a gas driven reservoir and a pressure maintenance plan continues to be developed for the lease.
A further review of data from all wells drilled on the lease group has now been completed by the Company's in-house technical team. Reservoir modelling has been updated and a decision has been made to proceed with water injection only into the reservoir. Gas produced from the lease is currently being sold with liquids via pipeline to Scissortail Energy Inc., who are stripping the liquids off site and paying a premium price per MCF. Currently AOK is receiving $4.25 AUD per mcf of gas.
Helen Lancaster #1Well - recompletion
As part of the review and reservoir modelling the Helen Lancaster #1 well is being recompleted and has been opened in the Red Fork formation with 56 feet of net pay perforated. The well will be fitted with a pump jack for production testing.
Hollie #2 and Mayo Moore #6 completions
Both wells are completed and waiting on pump jacks to be fitted to commence production testing along with some infrastructure work on lines. Some delay has been experienced moving equipment on the lease due to recent storms. Both wells are expected to be on pump within 2 weeks.
Additional Acreage Acquired
The Company has increased the acreage of the lease group to 890 acres with the addition of a 160 acre lease to the north and 120 acre lease to the west. Further contiguous acreage is under negotiation to ensure better control over enhanced recovery activities.
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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