AOK Delivers Stable Production for April and May
Sydney, June 25, 2012 AEST (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to report oil and gas production for the months of April and May 2012.
The majority of production came from the company's East Tonkawa production hub in the 5,500 acre Snake River Project.
Due to rain and flooding, the East Tonkawa Unit was shut in for safety concerns with no production for the first eight (8) days of May; however, the wells were restarted with normal production five (5) days thereafter.
------------------------------------Month Total Production Average Daily BOE Production------------------------------------January 6,698 216February 4,320 149March 5,385 175April 4,985 166May 5,300 170------------------------------------
Daily Production expected to increase strongly from June onwards
AOK expects daily production rates to increase from June onwards as new producing wells come online. Specifically, the Balder #1 Horizontal Well (AOK: 14.15% WI) is expected to make a material contribution to daily production.
Additionally, AOK expects daily production to increase and stabilise once the first two wells at its second production hub (the Blubaugh) in the Snake River Project come on-stream in the coming weeks.
Production for the first 14 days of June averaged 300 boe/day net to AusTex.
Executive Chairman Mr. Richard Adrey commented: "Production was stable for April and May and we are very confident that production levels will pick up from June onwards, especially given the contribution from our first horizontal well in which we participated with Range Resources (NYSE:RRC). We also expect improved production from some of our existing vertical wells which have been disrupted due to some minor technical difficulties."
Managing Director Mr. Daniel Lanskey added: "Production growth is the company's primary focus. With four wells under completion and a further two vertical wells being drilled each month, AOK is well placed to deliver increased and sustainable production rates from this point onwards."
Following is the status of all of the company's wells:
-----------------------------------------------------------Well Status -----------------------------------------------------------East Tonkawa Production Hub-----------------------------------------------------------ETU #14-5 Producing - Mississippi LimeETU #15-4 Producing - Mississippi LimeETU #17-6 Under CompletionETU #14-7 Reached Total Depth and has been logged, cased and waiting completion in Mississippi LimeBalder #1-30N Producing - Mississippi Lime(AOK - 14.15%WI) Adams #1 Completed and awaiting gas sales line and water disposal lines. -----------------------------------------------------------Blubaugh Production Hub-----------------------------------------------------------Blubaugh #20-1 SWD Disposal - Under completionBlubaugh #20-1 Awaiting completion - Mississippi LimeBlubaugh #21-3 Awaiting Completion - Mississippi Lime -----------------------------------------------------------Kansas-----------------------------------------------------------Clarke #1 Producing - Lansing Kansas CityCooper #1 Producing - Lansing Kansas CityLudwick #1 Producing - Arbuckle - Waiting on SWD connection (Electricity now connected)Mollhagen #1 Completed awaiting SWDQuackenbush #1 Rig onsite. Drilling to commence shortly.-----------------------------------------------------------
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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