AusTex Oil Limited (ASX:AOK) To Acquire 907 Acres For Oil Exploration In Kay County, Oklahoma
Sydney, July 29, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK), is pleased to advise that it has entered into a Letter of Intent to acquire ~907 acres in Kay County, near the town of Tonkawa, Oklahoma and in an area of aggressive development of oil projects by a number of operators.
The current owners have maintained minimal production of oil and gas on the lease which has extensive infrastructure in place including oil and gas gathering systems, storage facilities and gas sales lines along with two operating disposal wells.
The agreement is subject to final due diligence and Board approval with a proposed closing of 30 September, 2010. If the acquisition proceeds AOK will hold a 100% Working Interest and 81.25% Net Revenue Interest and would be the operator of the project. The acquisition will be funded from existing capital and is expected to be finalised this quarter. Additional acreage available for leasing is being reviewed.
Speaking from Tulsa, Managing Director of AOK, Mr Dan Lanskey commented, "This proposed acquisition complements our existing development in Oklahoma in known proven oil fields. We are already operating leases west of Tulsa and this project could be developed with existing staff and contractor relationships. Onshore development and exploration for oil in Oklahoma is hotting up with 132 rigs onsite in the State according to current information from RIGDATA".
Area of Development
Kay Countyis located in north-east Oklahoma, 100 miles north-west of Tulsa City. The area is a known oil producing region with laterally extensive multiple oil bearing horizons. Current exploration and development in the immediate area includes horizontal drilling in the Mississippi Limestone formation between 4000 feet and 5000 feet from surface. Initial production rates of 500 barrels of oil per day are being achieved with an average well cost of A$1.5 million.
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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