AusTex Oil Limited (ASX:AOK) Updates On Oklahoma and Kansas Operations in USA
Sydney, Feb 14, 2011 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) reports update on operations in USA.
As reported in the media, severe winter storms have been experienced across the USA in the last two weeks. The below freezing temperatures in Oklahoma and Kansas has impacted field operations in both States, however, most producing wells have remained pumping during this period.
Northern Oklahoma
Field work on the 907 acre East Tonkawa Unit in Kay County has recommenced following a two week interruption. Repairs to surface equipment including flow lines from existing wells to the tank batteries have been completed. Currently six wells have been put back on production with minor Workovers.
#4-1 Well
The #4-1 well has been prepared for production in the Cleveland Sand with 50 feet of the 105 foot zone perforated and hydraulically fractured. The well is expected to commence production testing this week.
This initial work program on the unit is expected to deliver a 100 barrel of oil per day increase in production by the end of this quarter.
AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in this project which now covers in excess of 3,000 acres. Additional Workovers are planned in the short term on existing vertical wells. This project is located in the highly prospective Northern Oklahoma Mississippian Play which is currently being aggressively developed by a number of NYSE listed oil companies. AOK plans to commence a horizontal drilling program targeting the Mississippi Lime formation later this year.
Kansas
Cooper Project - Sheridan County
Pratt #1 well - plugged
Castle Resources Inc. (CVE:CRI), as operator, advises that drilling on the Pratt #1 well reached a Total Depth of 4,150 feet. Some delays in operations were experienced due to winter snow storms across the USA.
Oil shows were encountered in four separate zones between 3,827 feet and 4,150 feet. Drill Stem Tests on the shows were inconclusive and logs indicated a lack of porosity in the potential pay zones.
The well has been plugged with AOK investment in the well totalling less than A$100,000. The Pratt #1 well was the first to be drilled on the northern side of a fault line located north of the Clark #1 discovery well. The purpose of the well was to establish if the productive zones in the Clark #1 extended beyond the fault line. Results from samples obtained and logs will allow technical staff to better understand the underlying potential of the area north of the fault line.
AOK holds a 53% Working Interest and a 43.5% Net Revenue interest in this 26,500 acre project located in Sheridan County, Kansas.
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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