AusTex Oil Limited (ASX:AOK) Updates On Operations At The Lancaster Lease Group, Tulsa County, Oklahoma
Sydney, Dec 7, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) advises the following update on operations at the Lancaster Lease Group, Tulsa County, Oklahoma.
Lancaster #8 Production Update
Following production testing the well has now stabilised at 20 barrels of oil per day and associated gas from a 3 foot interval of the Arbuckle Formation at 2,550 feet. The completed well will pay out in seven months. Arbuckle production has water drive and is therefore long life with a low rate of decline. The well also intersected 100 feet of gross pay zone in the Simpson Series Formations, which remains behind the pipe for future production.
Lancaster #9 Completion Underway
The Lancaster #9 well is being completed for production in the Simpson Series Formations. Logs indicate the well intersected 150 feet of the hydrocarbon bearing zone between 2,400 feet and 2,550 feet. The well has been cased and perforated over a 10 foot interval. The well is to be stimulated with hydraulic fracturing which is scheduled this week. Production testing is scheduled in the week commencing 13 December, 2010.
AOK holds a 100% Working Interest and 81.25% 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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