Reports Strong Flow Rates at Balder Horizontal Well
Sydney, May 28, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to report that it has received confirmation from Range Resources Inc (NYSE:RRC) that the Balder #1-30N horizontal well has commenced production with highly encouraging flow rates recorded in the first six days.
AOK holds a 14.15% working interest and an 11.15% net revenue interest in the well which is located on the western edge of AOK's East Tonkawa Unit, which is part of the Snake River Project in Northern Oklahoma. A 40 acre portion of Range's 320 acre well location is on AOK's project area. This is the first horizontal well in which the company has participated, and these initial production rates highlight the potential value and prospectivity of AOK's Snake River Project in the Mississippian Limestone Play.
AOK's Managing Director, Daniel Lanskey, said: "The well is still recovering the large frac load from 19 stages and may take another 2-3 weeks to stabilise. These are outstanding early production rates and give us added confidence in the Snake River Project. Not only do they increase our monthly production and revenue flows, they confirm that AOK may be sitting on a project with significant untapped potential for the company and its shareholders.
We are continuing to assess other participation opportunities in the same area as Balder #1, with a number of horizontal well locations being considered at Snake River. Participation in a horizontal well with Range Resources has increased the appeal and visibility of the Snake River Project, and we intend to capitalise on this further in the near term."
Mr Lanskey also added that drilling of the first vertical production well on one of the Blubaugh Leases, the Blubaugh #20-1 in the Snake River Project, reached TD overnight with logging operations underway. He said an active vertical well development program is well underway on the continguous Blubaugh leases.
"Very shortly we will have two rigs drilling vertical wells on the Snake River Project, with one rig continung to develop the Blubaugh leases as a second production hub on the north side of the river which bisects the project area. With conditional funding agreements in place and a growing revenue base, Austex is well placed to fast-track the development of new production wells from this point on. We will continue to update shareholders on our corporate and operational progress in the coming weeks."
To view the complete AusTex Oil announcement including Figures, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-680232.pdf
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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