Daily Production Averages 500 boepd
Sydney, Oct 4, 2012 AEST (ABN Newswire) - United States focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to report that during the final week of September 2012 the Company achieved a key production milestone with an average oil and gas production of 500 barrels of oil equivalent per day.
The significant increase in average daily production was due primarily to the contribution of only two new wells coming on stream at the company's 100% owned Snake River Project in North Oklahoma.
The #20-1 vertical well achieved a 30-day initial production average of 95 boepd, and the #20-3 vertical well achieved a 7-day initial production average of 92 boepd.
AusTex is extremely encouraged by the performance of these two new production wells and the company confirms that the vertical well development program is continuing with six additional vertical wells now in various stages of development.
Of note, the #20-5 is being completed and connected to the tank battery this week. A further two vertical wells are expected to be drilled this month.
Executive Chairman Richard Adrey commented: "This production performance is an early confirmation of the consistent production we are likely to record from October onward, and it reflects the impact of our ongoing vertical well development program at Snake River.
"Of particular note is the performance of the #20-1 after 30 days. For some time we have been saying that we want to deliver wells into production that have more sustainable and consistent production rates and the #20-1 reflects this.
"Importantly, this production confirms that we are in the early stages of building a revenue profile which will help to fund AusTex's future growth.
"Shareholders should be aware that AusTex's production, while pleasing, is still in its infancy. With three vertical wells in the development phase, a further six vertical production wells to be drilled this calendar year, and a planned horizontal well participation program with Range Resources, we are confident that our production profile is only just being established."
View the full AusTex Oil announcement including the well status update, at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-698391.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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