Mississippi Lime Development Success Continues
Sydney, July 24, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to update shareholders on its well development program at its 5,500 acre Snake River Project in Northern Oklahoma. AOK holds a 100% Working Interest and ~80% Net Revenue Interest in this project.
The company continues to make excellent progress at Snake River with six new production wells now in various stages of development. This adds to the three wells that are already in production.
Production Hub 1: East Tonkawa Unit
AusTex is pleased to report that both the ETU #17-6 and the ETU #14-7 have now been completed and are on pump. Production testing for both wells is underway.
Executive Chairman Richard Adrey said: "We are particularly encouraged by the progress we have made at East Tonkawa. In a very short period of time we have managed to bring two wells into production and this will add to our growing daily production which currently exceeds 300 BOE per day.
"We have made the decision to report production rates for our wells when frac loads have been recovered. We will then report production averages for the first seven days and thirty days. This allows us to report more consistent production rates each and every month."
Production Hub 2: Blubaugh Lease
The company is pleased to report that two new wells - the #20-4 and the #20-3 - have been drilled during July, logged and cased and will be fracced in the next month and then equipped for production. This takes the total number of wells to four in the Blubaugh Lease that will be fracced over the next 30-40 days.
AusTex is also pleased to report that its saltwater disposal well - the #20-SWD1 - is now fully operational and in readiness for the increased production in the coming months.
Richard Adrey added: "Activity on the north side of the River is now well ahead of schedule with four production wells in various stages of development. This positions us to deliver increased production levels in the coming months.
"Our well development program is the most active in the company's history, and we are delivering on our planned program of drilling two new wells each month, fraccing two from the previous month with completions running approximately 2 weeks after frac, or about 10 weeks from spud to being on pump.
"We are on track to significantly increase production from our current levels of 300 BOE per day. AusTex is well placed for sustainable production growth in the coming months."
To view Figure 1, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-686992.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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