Drilling Delivers Significant Oil and Gas Reserves Upgrade
Sydney, Mar 19, 2013 AEST (ABN Newswire) - United States mid-continent focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) advises that a review of its Oil and Gas Reserves on the Company's leases in Oklahoma and Kansas has now been updated by Integrated Petroleum Technologies Inc., based in Denver Colorado.
Development Drilling delivers Significant Oil and Gas Reserves Upgrade
- 1P Reserves increases 196% to 7.58 million BOE
- 1P Reserve NPV10 Value increases to $197.7m
- 2P Reserves increases 201% to 12 million BOE
- 2P Reserves NPV 10 Value increases to $284.1 million
The Reserve Report has been completed in compliance with the Canadian Oil and Gas Handbook and Canadian National Instrument 51-101. The table below highlights a summary of Net Oil and Gas Reserves as at 1 March 2013:
-------------------------------------------------------------- Oil Gas BOE Undiscounted PV 10% Future Reserves Reserves 6:1 PV Future Net Net Revenues Net (Mbbl) Net (MMscf) Revenues ($,000) ($,000)--------------------------------------------------------------1P 5,565 12,125 7,585 342,400 197,6952P 8,878 18,833 12,016 545,367 284,105 3P 14,481 29,681 19,427 889,083 394,738--------------------------------------------------------------
Executive Chairman Richard Adrey commented: "Our focus on the successful development drilling program at our Snake River Mississippi Lime Project has been the key driver to increasing oil and gas production, and concurrently, this project is the major contributor to the increases in 1P and 2P Reserves.
Production east of the Nemaha Uplift is now recognised by the industry as a liquids rich part of the Mississippi Lime Play in Oklahoma. Our vertical well program is consistently delivering 75% oil content from hydrocarbons being produced at very attractive Finding & Development costs. We continue to develop the Snake River Project at a rate of 6 vertical wells per quarter, and discussions are continuing with various parties to expedite the development and acquisition of further nearby acreage".
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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