AusTex Oil Limited (ASX:AOK) Releases Quarterly Activities And Cash Flow Report
Sydney, July 28, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) releases Quarterly Activities And Cash Flow Report.
1. Operations
Gross Revenue from operations for the quarter was A$1,387,202 with net to AOK after royalties to mineral owners and taxes of A$1,010,636. During the three months ending 30 June 2010, cash expended for exploration and project development was A$1,573,000. Cash on hand at end of quarter was A$5,387,000. The company has no debt.
1.1. Oklahoma
AusTex Oil Limited owns and operates a number of oil and gas leases in Oklahoma through its wholly owned subsidiary, International Energy Corporation (Oklahoma) (IEC-OK).
1.1.1. Lancaster Lease Group - Tulsa County - 890 acres
AOK - 100% Working Interest (WI); 81.25% Net Revenue Interest (NRI)
Development drilling continued on the lease group with the Baggett #33-3, Hollie #2 and the Mayo Moore #6 drilled successfully. The Baggett #33-3 is completed for oil production in the Wilcox formation. The Hollie #2 and Mayo Moore #6 are completed in the Red Fork formation and production testing had begun at the time of this report.
Reservoir Management Plan and Scheduled Development
A reservoir management plan is being implemented across the lease group to ensure maximum recovery and life span of oil and gas production from the Red Fork and Tanaha formations. Drilling of production and injection wells is scheduled to continue until the end of calendar year 2010.
Additional protection acreage was leased during the quarter bringing the total lease area to 890 acres. Data from logs and samples from each well is being used to continually develop reservoir modelling and modify development plans for the lease. Current development drilling is spaced at 10 acres.
Table of Wells and Status
----------------------------------------------------------Well Name Formation Type Status----------------------------------------------------------Mayo Moore #1 Red Fork Oil/Gas Producing----------------------------------------------------------Mayo Moore #2 Red Fork Oil/Gas Producing----------------------------------------------------------Mayo Moore #3 Red Fork Injector Operating----------------------------------------------------------Mayo Moore #4 Red Fork Oil/Gas Producing----------------------------------------------------------Mayo Moore #5 Red Fork Oil/Gas Producing----------------------------------------------------------Mayo Moore #6 Red Fork Oil/Gas Producing----------------------------------------------------------Mayo Moore #7 Big Lime Oil/Gas Producing----------------------------------------------------------Mayo Moore #8 Red Fork Injector Under Completion----------------------------------------------------------Baggett #1-33 Red Fork Oil/Gas Producing----------------------------------------------------------Baggett #2-33 Red Fork Oil/Gas Producing----------------------------------------------------------Baggett #3-33 Wilcox Oil Producing----------------------------------------------------------Baggett #4-33 Red Fork Oil/Gas Under Completion----------------------------------------------------------Lancaster #5A Red Fork Oil/Gas Re-completion----------------------------------------------------------Helen Lancaster #1 Red Fork Oil/Gas Re-completion----------------------------------------------------------Helen Lancaster #2 Red Fork Oil/Gas Re-completion----------------------------------------------------------Hollie #2 Red Fork Oil/Gas Producing----------------------------------------------------------
1.1.2. Sweet Lease - Pawnee County - 400 acres
AOK - 100% WI; 82.5% NRI
During the quarter an additional 160 acres was leased as part of the project. Additional development work is scheduled for second half of calendar year 2010.
--------------------------------------------------Well Name Formation Type Status--------------------------------------------------Sweet #4A Bartlesville Oil Producing--------------------------------------------------Sweet #5A Bartlesville Oil Producing--------------------------------------------------Sweet/Freeman #5 Bartlesville Oil Producing--------------------------------------------------J&O #1 Bartlesville Oil Producing--------------------------------------------------
1.2. Kansas
AusTex Oil Limited holds interests in oil and gas leases located in the State of Kansas through a wholly owned subsidiary International Energy Corporation (Kansas) (IEC-Kansas). The company is the majority working interest partner with Castle Resources Inc., as operator, a private oil and gas operator based near Hays, Kansas.
1.2.1. Cooper Project - Sheridan County - 26,500 acres
AOK - 53% Working Interest - 46% Net Revenue Interest During the quarter development drilling continued on the project with the Clark #3 and Clark #5 wells. The Clark #3 well encountered hydrocarbons in the Toronto and Lansing Kansas City formation, however, upon testing they were deemed to be non commercial. The Clark #5 Well was drilling June 2010 and intersected hydrocarbons in the Toronto and Lansing-Kansas City formations. At the time of this report the well was under completion in the Toronto formation with testing to commence shortly. Additional development drilling is scheduled for September quarter.
2. Corporate Activity - Rights Issue raises A$5.4m before Costs
On 24 March 2010, AOK announced a fully underwritten non renounceable rights issue to be offered to eligible shareholders. Funds from the rights issue will be used to expedite the development of the Company's' oil and gas lease interests in Kansas and Oklahoma. An additional 33,884,998 shares were issued at a price of 16 cents per share. 16,942,510 options exercisable at 25 cents with an expiry date of 1 December 2011 were issued with one option issued for each two new shares purchased.
3. Lease Operating Schedule - 30 June 2010
-------------------------------------------------------Lease Name Acreage WI NRI County, State-------------------------------------------------------Lancaster 890 100% 81.25% Tulsa, OKand surrounds-------------------------------------------------------Sweet 400 100% 84% Pawnee, OK-------------------------------------------------------Crisler 80 100% 84.375% Creek, OK-------------------------------------------------------Gypsy/Walker 80 100% 81.25% Creek, OKProject-------------------------------------------------------BlueHawk 160 50% 42.5% Osage, OKProject-------------------------------------------------------Cleveland 160 100% 82.5% Creek, OKProject-------------------------------------------------------Cooper 26,500 53% 46% Sheridan, KSProject-------------------------------------------------------Jewel Project 35,000 30% 21.3% Jewel and Mitchell, KS-------------------------------------------------------McCracken 3,200 50% 42.25% Rush and Ness,Project KS-------------------------------------------------------Beltz Project 160 40% 33.8% Ellis, KS-------------------------------------------------------
For the complete AusTex Oil Limited Quarterly Activities And Cash Flow Report, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63412-ASX-AOK-599927.pdf
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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