Blubaugh 21-3 Vertical Well Success at Snake River Project
Sydney, June 7, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) today announced that the Blubaugh #21-3 production well in the company's 5,500-acre Snake River Project in Northern Oklahoma has reached a Total Depth (TD) of 4,780 feet.
Logs and samples have revealed multiple hydrocarbon bearing zones with 344 feet of the Mississippi Lime structure intersected and a 35-foot Chat section with greater than 20% porosity. The Mississippi Lime interval is the key target for AOK.
AOK is also pleased to report that its engineers are currently reviewing logs and data from the Blubaugh #20-1 production well which reached TD late last month. Completion is scheduled within the next 4 weeks for both the #20-1 and the #21-3 as infrastructure is built out and will be followed by the testing of the Blubaugh #20-1 production well thereafter. The Blubaugh Lease has been established as a second production hub on the Snake River Project with a salt water disposal well and storage tank facilities now in place.
As previously reported, AOK continues to fast-track its well development program with two production wells being drilled each month. Drilling has recommenced on the ETU #17-6 well, which was put on hold due to poor weather conditions. The rig is drilling ahead at 4,408 feet with a likely TD of 4,750 feet. The rig will then immediately drill ETU #14-7, the fourth production well in the East Tonkawa Unit production hub.
AOK's Managing Director Daniel Lanskey said: "Our development program is progressing well. We will continue to bring more producing wells on stream in the coming weeks, and maintain an active and consistent drilling program. Increasing daily production is our primary focus at this time and we have two wells under completion that will help us to achieve this in the very near term.
Executive Chairman Richard Adrey added: "We have an excellent drilling contractor on site at Snake River and this gives us every confidence that we can maintain our target of drilling two vertical production wells each month, and build the scale of our two production hubs at East Tonkawa and Blubaugh".
"At the same time, following the success of the Balder #1-30N horizontal well, we are assessing locations and partners for additional horizontal wells. We will continue to update shareholders on both our vertical and horizontal well development programs."
AOK holds a 100% working interest and a 81.25% net revenue interest in the Snake River Project which sits in the highly prospective Mississippian Lime Play of Northern Oklahoma and Kansas.
--------------------------------------------------------------- Well Name Status--------------------------------------------------------------- East Tonkawa Production Hub---------------------------------------------------------------ETU #14-5 Producing - Mississippi LimeETU #15-4 Producing - Mississippi LimeETU #17-6 DrillingETU #14-7 Drilling to commence mid June 2012Balder #1-30 N(AOK - 14.15%WI) Producing - Mississippi Lime--------------------------------------------------------------- Blubaugh Production Hub---------------------------------------------------------------Blubaugh #20-1 SWD Disposal - Under completionBlubaugh #20-1 Under completion - Mississippi LimeBlubaugh #21-3 Under completion - Mississippi Lime---------------------------------------------------------------
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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