AusTex Oil Limited (ASX:AOK) Update on Operations at the Lancaster Lease Group
Sydney, Dec 23, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) provides the following update on operations at the Lancaster Lease Group, Tulsa County, Oklahoma.
Lancaster #9 - Production testing Update
Production testing on the Lancaster #9 is underway. The well has been completed in one of the Simpson Sands with 33 feet perforated. The formation was treated with a retarded acid and surfactant.
During swab testing over a period of 2 days the well produced at an initial rate of 8 barrels of oil per hour, increasing to 30 barrels of oil per hour along with 6 barrels of treatment of fluid and associated gas at the end of the period.
Whilst historical initial rates of production have been upwards of 800 barrels of oil per day from the Simpson Sands in this region, modern day best-practices dictate to produce at lower rates to better preserve reservoir integrity and ensure longevity of production. This well has now been fitted with a down hole pump and surface equipment set to produce at the rate of 146 barrels of fluid per day during the next stage of production testing. This rate will ensure efficient recovery of well completion fluids and minimise any near well bore formation damage.
Speaking from Tulsa, Consulting Geologist, Martin Black commented, "This is a very exciting result. With the initial swab testing confirming an equivalent rate of up to 720 barrels of oil per day, we need to monitor the flow rates closely over the next few weeks to determine the most efficient level of production for longevity of the well. We have permitted the Helen Jean #1 well to be drilled on the southern end of the identified structure with initial mapping indicating there may be an additional 10 well locations with the Simpson formations present".
Lancaster #8 - Simpson Series behind Pipe As previously reported, the Lancaster #8, which is currently producing from the Arbuckle Formation, also logged 100 feet of the Simpson Sands on the same structure. The Company intends to open one of the Simpson Sands for production in the New Year. Helen Jean #32-1 Well Permitted Drilling of the Helen Jean #32-1 well is planned for early in the New Year. This location is located to the south of the Lancaster #9 and will address the same targets. AOK holds a 100% Working Interest and 80% Net Revenue Interest in this lease.
Competent Person Statement In accordance with the ASX listing rules, the information in the release has been reviewed and approved by Mr Martin Black, Consulting Geologist. Mr Black holds a degree in Geology and has over 20 years of experience in the mid-continent region of the USA. Mr Black has the relevant experience within the industry and consents to the information in the form and context in which it appears.
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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