Well Development Program Continues at Snake River
Blubaugh #21-4 Well - Drilled and Cased
Drilling operations on the #21-4 well have successfully reached TD at 4,652 feet. Samples and logs recorded excellent oil and gas shows in multiple formations including the target Mississippi Lime from 4,252 to 4,593 feet - 340 feet thick with 40 feet of chat.
The well has been cased and will be completed for production testing over the coming 3-5 weeks.
The drilling contractor is to move onto the location of the Swankee #24-2 well in the next few days. This well is located 3 miles east of Production Hub No 2 and is located in Section 24 Township 24N Range 1 East. This will be the first well drilled in this 640 acre Section and will target the Mississippi Lime with an expected TD of 4,750 feet.
Executive Chairman Richard Adrey commented: "The team is doing an excellent job of delivering on its operational objectives during a sustained period of inclement weather, with drilling and hydraulic fracturing still meeting the company's stated development targets.
"Our well development program remains on track as we continue to drill two new vertical wells a month and bring additional vertical wells into production. We now have 13 vertical wells in production, and 8 vertical wells under completion.
"Our well development program confirms that the Snake River Project is indeed a sweet spot in the Mississippi Lime Play with the #21-4 demonstrating all the characteristics of uniformity and consistency of the hydrocarbon formations that we have witnessed in previous wells. Our confidence in the project grows with each new well.
"AusTex recently brought a number of new vertical wells into production which are adding to our daily production rate, and we look forward to reporting flow rates once these wells have been producing for 30 days."
About AusTex Oil Limited
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.
AusTex Oil Limited