Drilling Success on Second Horizontal Well
Sydney, Nov 22, 2012 AEST (ABN Newswire) - United States focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to update shareholders on its continued well development program at the company's 100% owned 5,500 acre Snake River Project in Kay County, Oklahoma.
Hod #19-1N Well
The company has received confirmation from Range Production Company, a subsidiary of Range Resources Corporation (RRC:NYSE), that drilling operations at the Hod #19-1N Horizontal well have been completed and that production testing is to commence. AusTex holds an 8.4% Working Interest and 6.7% Net Revenue Interest in the Hod #19-1N well.
The well reached a Total Measured Depth of 9,301 feet including a 4,000 foot lateral section through the Mississippi Lime interval. Logs and samples have confirmed the presence of Hydrocarbons across the length of the lateral.
A 20 stage hydraulic fracture stimulation has been completed successfully and the well has been fitted with an Electric Submersible Pump. Production testing has commenced and further updates will be provided in coming weeks.
The Hod #19-1N well is the first of up to three wells to be drilled in Section 19 Township 25 North Range 1 East on the western side of the Snake River Project and is located directly north of the successful Balder #1-30N. Additional Horizontal well participation opportunities are being pursued. (see map below)
AusTex Executive Chairman Richard Adrey commented: "We are extremely pleased with the Range Resources team and their progress on this well to date. They have again demonstrated their expertise in this area with an impressive 19 days from spud date to turning the well over for production testing.
Range Resources are modeling these Horizontal wells with a cost of $US3.4m and an Estimated Ultimate Recovery of up to 600,000 Barrels of Oil Equivalent with 70% liquids. Based on these numbers the wells have an NPV of $US7.1m and show an Internal Rate of Return of ~100% with current spot commodity pricing.
Additional Horizontal wells are planned with Range Resources in the coming months and along with our ongoing successful vertical well program we are planning to increase our oil and gas production significantly during calendar year 2013.
About AusTex Oil Limited
AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is a Public Company listed on the Australian Securities Exchange (ASX) and the OTCQX.
AusTex is focused on exploration and development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas and is currently developing producing leases in both states with interests in 11,600 net acres of oil and gas leases in the Mississippi Lime Play. The Company has net production of circa 800 boe/day with Independent 1P reserves certified at 3.505 Million BOE with NPV10 of US34.8 million as at 31 December 2015.
US operations are based in Tulsa, Oklahoma, with an office at 1801 East 71st Street. International Energy Corporation (Oklahoma) is a wholly owned subsidiary and a licensed oil and gas operator in Oklahoma and Kansas.
| ||
|
