AusTex Oil Limited (ASX:AOK) Lancaster #8 Well Completed For Production At Lancaster Lease Group, Oklahoma
Sydney, Oct 27, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK), is pleased to advise its stakeholders that the Lancaster #8 well has been completed for production at 2500 feet.
The well is fitted with a pump jack currently geared to produce 350 barrels of fluid a day. During the completion process free oil was present at the well head along with associated gas requiring the well to be loaded with salt water to enable the down hole pump and production tubing to be fitted.
Production testing will continue over the next 7-10 days with recovery of completion fluids expected to take between 24-48 hours. Total investment in the completed producing well is less than $US200,000.
Samples obtained during drilling and logs completed confirm the well intersected hydrocarbons in the Simpson Sands series and Arbuckle formation along with a number of shallower formations. The well logged 65 feet structurally higher than nearby wells.
Permitting of the next well, the Lancaster #9 well, is completed. Drilling of this well is scheduled to commence mid-November. This well is a step out well to the Lancaster #8 and is targeting the same structural high with an expected Total Depth of 2500 feet.
AOK holds a 100% Working Interest and 80% Net Revenue Interest in this project.
About Australian Oil Company Limited
Australian Oil Company Limited (ASX:AOK) (OTCMKTS:SGCSF) is an Australian-based energy company focused on under-explored, recently over-looked, world class oil and gas opportunities near under-supplied markets. The Company is currently focussed on conventional oil and gas exploration and production in the Sacramento Basin in California. Australian Oil has a portfolio of natural gas and oil producing wells in addition to prospects and discoveries at various exploration and appraisal stages. AOK is in the process of evaluating the acquisition of oil and gas producing and exploration assets to enhance the Company's strategic needs and deliver shareholder value.
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