Drilling Success on Arbuckle Well at Ellsworth Project
Sydney, Dec 4, 2012 AEST (ABN Newswire) - United States focused oil & gas producer AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) advises that drilling has reached Total Depth at the Ross #1 development well at the Ellsworth Project, Rice County, Kansas (AOK: WI 50% and NRI 38%).
Castle Resources Inc., as operator, advises that drilling on the Ross #1 well reached Total Depth of 3,375 feet on Thursday 29 November Kansas time.
Logs, drill stem tests and samples have confirmed the presence of hydrocarbons in multiple breaks of the Arbuckle Formation, indicating commercial quantities of oil.
Casing has been set and the well is to be completed for production testing over the coming weeks.
Executive Chairman Richard Adrey commented: "Whilst our primary focus is on development activity at the 100%-owned Snake River Project in Northern Oklahoma, there is considerable unlocked value in our Kansas portfolio and we believe a more active development program is now warranted to realise some of this value in both production and reserves.
"The results from the Ross #1 confirm that a ramp-up in exploration and development activity is proving to be a successful strategy, and we look forward to updating shareholders on the results from production testing and our forward work plans in Kansas. A number of major oil & gas companies have recently acquired acreage in Kansas which gives us further encouragement on this investment."
"In Oklahoma we are pleased to confirm that our vertical well development program remains on track, with two new vertical wells to be drilled this month, and six wells are in various stages of pre-production. Our horizontal well participation program with Range Resources is also meeting expectations, and we are eagerly awaiting flow rates from the Hod #1.
"AusTex is in excellent shape. We have cash reserves in excess of $10 million which funds our next and major phase of development, and we are now well-supported by a committed investor base which includes some of Australia's and North America's leading institutional investors."
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.
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