AusTex Oil Limited (ASX:AOK) Expands Mississippi Lime Acreage in Kansas
Sydney, Jan 6, 2012 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (PINK:ATXDY) advises that the company has acquired over 8,000 acres of oil and gas leases that is prospective Mississippi Lime acreage with a 70% Working Interest and a 58.8% Net Revenue Interest in Kansas. The Company has agreements on additional leases that will be announced upon settlement.
Background
AusTex Oil and Castle Resources Inc., as operator, are working interest partners in oil and gas leases in Sheridan and Thomas Counties, Kansas. A 26,500 acre seismic shoot was conducted in 2009 on the Cooper Project, which currently has 2 wells producing from the Lansing Kansas City formation. Reinterpretation of the seismic shoot has highlighted the presence of both the Mississippi Lime and Arbuckle formations within the project area below the current producing Lansing Kansas City formation. The 3D seismic for the expanded project area is currently being contracted so that high-graded areas may be selected for development.
In recent months the companies have been expanding the Project Area to the west and north of the Cooper Project. This region has witnessed substantial increases in leasing and exploration activity over the last 3 months.
In December 2011, Sandridge Energy (NYSE:SD) reported an expanded area of interest in the Mississippi Lime play to include north west Kansas and announced that Sandridge had entered into a $1 billion joint venture with Spanish company Repsol to undertake development of leases in the play. With the SandRidge/Repsol announcements of the extension of the play, AusTex feels an obligation to announce its ongoing activities in this expanded area.
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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