Drilling Success Driving Production Growth at Snake River
Sydney, Feb 21, 2013 AEST (ABN Newswire) - United States mid-continent focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to update shareholders on its vertical well drilling program at the Company's 100% owned and operated Snake River Project in Northern Oklahoma.
Scott #20-9 Well - TD 4,705 feet
Drilling on the #20-9 vertical development well has successfully reached its TD at 4,705 feet, after it intersected the target Mississippi Lime interval between 4,290 to 4,650 feet with logs and samples indicating multiple intervals with porosity and oil shows. Additional oil and gas shows were recorded in the Layton Sand, Big Lime, and Woodford Shale which underlies the Mississippian.
The well has been cased and will be completed for oil and gas production over the ensuing 8-10 weeks. The company has found that the wells perform better if they are not flowed back from hydraulic frac immediately.
The rig has now moved to the next well, the ETU #14-8, with drilling expected to commence over the next 48 hours, subject to weather conditions. This is the fourth well to be drilled on the project since 1 January 2013.
AusTex is also pleased to report that its well development program is progressing to plan, and four additional vertical wells are expected to enter production in the coming weeks which will drive the continued and steady growth in production.
Executive Chairman Richard Adrey commented: "Since 1 January, and despite some weather delays, we have successfully drilled three new wells which will be completed for production over the near term,
"We have also commenced production testing on three wells drilled late last year. In addition, we have 4 wells that have been fracced and will enter production in the coming weeks. Overall, our production profile continues to improve."
About Australian Oil Company Limited
Australian Oil Company Limited (ASX:AOK) (OTCMKTS:SGCSF) is an Australian-based energy company focused on under-explored, recently over-looked, world class oil and gas opportunities near under-supplied markets. The Company is currently focussed on conventional oil and gas exploration and production in the Sacramento Basin in California. Australian Oil has a portfolio of natural gas and oil producing wells in addition to prospects and discoveries at various exploration and appraisal stages. AOK is in the process of evaluating the acquisition of oil and gas producing and exploration assets to enhance the Company's strategic needs and deliver shareholder value.
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