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 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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