SYDNEY, AUSTRALIA--(Marketwired - May 22, 2013) -
Snake River Project - Northern Oklahoma
- Roger #20-6 well reaches TD 4,700 feet
- Well intersects ~360 feet of gross Mississippian
- Logs and samples record multiple hydrocarbon intervals
- Fath #28-1 well reaches TD 4,689 feet
- Well intersects ~ 360 feet of gross Mississippian
- Multiple hydrocarbon bearing zones recorded
- Theda #25-1 to spud within 7 days
- AusTex not impacted by recent weather conditions in Oklahoma
- 9 wells now in pre-production phase and 16 producing wells
Colby Project - North West Kansas
- Well drilled and determined to be non-commercial
- Assessing new exploration strategy for Kansas
United States mid-continent focused oil and gas producer AusTex Oil Limited (AOK.AX) (TSX VENTURE:ATO) (ATXDY) is pleased to update shareholders on its vertical well development program at the 100%-owned Snake River Project, and the company's exploration activities in Kansas.
Snake River Project, Northern Oklahoma: AOK 100% WI and Operator
In recent weeks the company has drilled two new vertical wells at Snake River with both reaching total depth and multiple hydrocarbon zone recorded. A third well will be spudded in the coming days, continuing AusTex's stated goal of drilling two new vertical wells each month at the project.
Roger #20-6 Vertical Well - successfully reaches TD
The #20-6 development well reached a TD of 4,700 feet last week and intersected ~460 feet of the target Mississippian formation. Logs and samples indicated hydrocarbons in multiple formations and the well has been cased. Production testing of the Mississippian will commence once the well has been perforated and fracced.
Fath #28-1 Vertical Well - Successfully reached TD
Drilling of the #28-1 development well reached TD of 4,689 feet earlier this week. Logs and samples indicate commercial hydrocarbons in multiple intervals including the Mississippian, Woodford Shale, and in other shallower stacked Pennsylvanian aged formations.
The well intersected ~360 feet of gross Mississippian between 4,234 and 4,601 feet, demonstrating the contiguous nature of the formation in this project. In addition to 25 feet of highly porous chat at the top of the Mississippian logs, indicated multiple porosity breaks through the interval. Logs also recorded ~40 feet of the Woodford Shale below the Mississippian.
The well has been cased and will be completed for production testing in the Mississippian. As this is a vertical well, future production potential is held behind pipe in additional formations that have indicated the potential for commercial hydrocarbons.
Theda #25-1 Well to Spud
AusTex continues to drill two development wells per month at the Snake River Project, and the Theda #25-1 is expected to spud within 7 days. Storms and tornadoes recorded in Oklahoma in the last two weeks have not affected operations at the Snake River Project.
Colby Project, North West Kansas: AOK 70 % WI Non-Operator
Steele #1 Well - successfully reaches TD
Castle Resources Inc., as operator, reports that drilling of the Steel #1 well successfully reached TD at 4,710 feet. The well intersected the Lansing Kansas City, Cherokee and Mississippian intervals. Logs and samples indicated the hydrocarbons present were non- commercial. The well has been plugged and abandoned and AusTex's total investment was $US186,000.
Data from the two wells drilled this quarter will be used to re-assess 3D seismic mapping. The company has every confidence in its Kansas assets and AusTex is currently reviewing its exploration methods before further expenditure is undertaken.
AusTex's Executive Chairman Richard Adrey commented: "In Oklahoma, our active vertical well development program is well on- track. We now have 16 wells producing, eight in the pre-production phase, and one well to drill this week. This pipeline of nine pre- production wells will help to drive increased production growth. Snake River continues to live up to its status as a Mississippi Lime 'sweet spot' and its exploitation remains our primary focus.
"The results from the latest vertical wells drilled at Snake River endorse our vertical well development strategy. In addition to the Mississippian, the long term potential of additional multiple stacked pay zones makes this strategy highly economical. This area of Oklahoma still has significant untapped potential and we are still in the early stages of realising Snake River's value."
"Our total exploration investment in Kansas is less than $400,000 this year. While we were hoping for better results from the first two wells, our objective at this time is to preserve capital until we assess the geological data and our operational processes. AusTex has a large land position in Kansas totalling some 30,300 gross (18,600 net) acres and there is a lot of scope for future development."
AusTex Oil Limited
A.C.N. 118 585 649
Tom Bloomfield +61 2 9290 9617
AusTex Oil Ltd (AOK.AX) is an Exploration and Production company that is focused on the development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas. AOK holds interests in ~26,000 net acres of oil and gas leases, including acreage in the highly prospective Mississippi Lime play in Northern Oklahoma and Kansas.