Well Development Program Continues at Snake River
Sydney, April 4, 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.
Blubaugh #21-4 Well - Drilled and Cased
Drilling operations on the #21-4 well have successfully reached TD at 4,652 feet. Samples and logs recorded excellent oil and gas shows in multiple formations including the target Mississippi Lime from 4,252 to 4,593 feet - 340 feet thick with 40 feet of chat.
The well has been cased and will be completed for production testing over the coming 3-5 weeks.
Swankee #24-2
The drilling contractor is to move onto the location of the Swankee #24-2 well in the next few days. This well is located 3 miles east of Production Hub No 2 and is located in Section 24 Township 24N Range 1 East. This will be the first well drilled in this 640 acre Section and will target the Mississippi Lime with an expected TD of 4,750 feet.
Executive Chairman Richard Adrey commented: "The team is doing an excellent job of delivering on its operational objectives during a sustained period of inclement weather, with drilling and hydraulic fracturing still meeting the company's stated development targets.
"Our well development program remains on track as we continue to drill two new vertical wells a month and bring additional vertical wells into production. We now have 13 vertical wells in production, and 8 vertical wells under completion.
"Our well development program confirms that the Snake River Project is indeed a sweet spot in the Mississippi Lime Play with the #21-4 demonstrating all the characteristics of uniformity and consistency of the hydrocarbon formations that we have witnessed in previous wells. Our confidence in the project grows with each new well.
"AusTex recently brought a number of new vertical wells into production which are adding to our daily production rate, and we look forward to reporting flow rates once these wells have been producing for 30 days."
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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