AusTex Spuds Sixteenth vertical well at Snake River
Sydney, Jan 8, 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 Snake River Project in Northern Oklahoma.
Nicholson #20-7 well reaches TD
Drilling operations on the Nicholson #20-7 vertical well successfully reached TD at 4,732 feet over the weekend. The well intersected 375 gross feet of the target Mississippi Lime interval including 30 feet of highly porous Chat at 4,330 feet. Additional porosity streaks were logged in the Mississippi Lime interval.
Logs and samples indicate the presence of hydrocarbons in additional intervals including the Woodford Shale and the Skinner and Cleveland Sands. Casing has been run and cement set with the well to be completed for oil and gas production.
Read #20-8 Well
Drilling operations have now commenced on the Read #20-8 vertical well, the 16th vertical well at the Snake River Project. Surface casing has been set to 286 feet and contractors are waiting on cement to set prior to drilling ahead. The well is targeting the Mississippi Lime interval and is a step out well from the #20-7 with an expected TD of 4,750 feet.
AusTex Executive Chairman Richard Adrey commented: "Our program of drilling two new vertical production wells per month at the Snake River Project is on track and progressing to plan. We have just commenced drilling our16th vertical well at Snake River with two further wells to follow next month.
"Snake River is continuing to shape up as an excellent asset with oil and gas production data tracking well above typical type curves for vertical wells. With an estimated ultimate recovery of 85,000 barrels of oil equivalent per well at a cost of $600,000, the economics of the vertical well program are exceptional, and this is starting to be recognised in our growing revenue and production numbers. These wells are costing one-sixth of a horizontal well with between a third and a fourth of the Estimated Ultimate Recoveries (EURs).
"AusTex is well placed to continue the same level of development in 2013 and we will continue to drill two vertical wells per month at Snake River this year, as well as participating in horizontal well development programs."
AusTex will shortly update shareholders on its production for the December quarter. The company will also shortly report on development activities for new vertical wells which are now entering production. AusTex has also provided a new image and table (overleaf) of its vertical and horizontal wells at the Snake River Project.
To view charts and diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-715325.pdf
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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