Proactiveinvestors Australia

AusTex Oil signs deal for A$7.2M in funding for exploration and development in Oklahoma and Kansas

Mon, 30 Apr 2012 16:20:00 +1000

AusTex Oil (ASX: AOK) has reached an agreement with a group of North American institutional investors for US$7.5 million (A$7.2 million) in funding to continue its exploration and development programs in Oklahoma and Kansas.

Under the agreement, which requires shareholder approval, the funds will be raised through an issue of convertible notes to the investors.

Each note can be converted into a fully paid share at A$0.15 each. AusTex will also issue 1 free option for every 2 shares issue.

These options will be unlisted and have an exercise price of A$0.20 each and will be exercisable within 3 years of the date of shareholder approval, which will be sought during its annual general meeting at the end of May.

AusTex noted the investors, which include New York based Iroquois Capital Opportunity Fund, Los Angeles-based Young Capital Partners and Toronto based The K2 Capital Principal Fund, are all oil and gas focused.

The company is focused on the Mississippi Lime targets in Kansas and Oklahoma. It is poised to start production testing of its Balder 1-30N horizontal well in the Snake River Project in Kay County.

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AusTex Oil seeks data from new salt water disposal well in Oklahoma

Fri, 27 Apr 2012 08:20:00 +1000

AusTex Oil (ASX: AOK) has spudded the Blumbaugh 20D-1 well at the Snake River Project in Kay County, Oklahoma, that will provide additional data and act as a new salt water disposal well.

The well will be drilled to a total depth of 6100 feet (1859.3 metres) and a full suite of logs run to gain an insight into all formations underlying the Mississippi Lime formation as this is the first well the company is drilling on the north side of the Snake River.

AusTex added there was existing oil production form the Mississippi Lime from wells in adjacent leases.

Blumbaugh 20D-1 will be used to dispose of produced water from additional production wells to be drilled in the coming months.

Once drilling is completed, the rig will move to drill the Blumbaugh 20-1 production well.

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AusTex Oil to test Oklahoma Mississippi Lime well

Mon, 23 Apr 2012 14:30:00 +1000

AusTex Oil (ASX: AOK) has said the Balder 1-30N horizontal well in the Snake River Project in Kay County, Oklahoma, has being tied into onsite storage facilities for production testing.

The Mississippi Lime well was successfully fracture stimulated and is now flowing back frac fluids.

Operator Range Production Company said that based on previously drilled wells adjacent to Balder 1-30N, Snake River project wells are expected to recover between 400,000 and 500,000 barrels of oil equivalent – 70% liquids – throughout their life.

With each well costing about US$3.1 million (A$3 million) to drill and complete, internal rate of return has been calculated at between 90% to 105% based on a US$100 per barrel oil price.

Production from the Snake River project is expected to grow rapidly over the next 12 months with the ETU 17-6 well currently being drilled while a second rig is set to start drilling the Blumbagh D-20 SWD.

AusTex has a 13.73% working interest in the project.

The Mississippi Lime has become the premier horizontal resource play in north central Oklahoma, attracting companies such as Chesapeake Energy (NYSE: CHK), SandRidge Energy (NYSE: SD) and Devon Energy (NYSE: DVN).

Australian players in the Mississippi include Red Fork Energy (ASX:RFE), World Oil Resources (ASX:WLR) and Sundance Energy Australia (ASX: SEA).

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AusTex Oil completing Mississippi Lime oil and gas well in Oklahoma, further drilling expected

Tue, 17 Apr 2012 12:50:00 +1000

AusTex Oil (ASX: AOK) will fracture stimulate its Balder 1-30N development well in the Snake River Project in Kay County, Oklahoma, after confirming the presence of hydrocarbons along the horizontal section.

Storage tanks and surface facilities are under construction in preparation for production.

The company said the success of the Range Production Company operated well was a milestone for AusTex as development of the Mississippi Lime play was expanding rapidly.

It added it expected production from the Snake River project to grow rapidly over the next 12 months.

Further development drilling is set to continue with the ETU 17-6 well underway and a second rig set to start drilling in the next few days on the Blumbagh D-20 SWD.

AusTex has a 13.73% working interest in the project.

The Mississippi Lime has become the premier horizontal resource play in north central Oklahoma, attracting companies such as Chesapeake Energy (NYSE: CHK), SandRidge Energy (NYSE: SD) and Devon Energy (NYSE: DVN).

Australian players in the Mississippi include Red Fork Energy (ASX:RFE), World Oil Resources (ASX:WLR) and Sundance Energy Australia (ASX: SEA).

AusTex Oil expands Mississippi Lime gas condensate acreage in Kansas

Thu, 05 Apr 2012 15:40:00 +1000

AusTex Oil (ASX: AOK) has picked up an additional 8100 acres (32.8 square kilometres) of Mississippi Lime acreage in Kansas, bringing its total holding in the Colby project in Sheridan and Thomas counties up to 15,500 acres.

It also brings the company’s total Mississippi Lime acreage in Oklahoma and Kansas up to 22,500 acres.

Historical drilling in the area has confirmed the presence of the Lansing-Kansas City, Mississippi Lime and Arbuckle Lime formations.

The Mississippi Lime has become the premier horizontal resource play in north central Oklahoma and southern Kansas, attracting companies such as Chesapeake Energy (NYSE: CHK), SandRidge Energy (NYSE: SD) and Devon Energy (NYSE: DVN).

AusTex had recently participated in two successful vertical production wells and is now involved in the first horizontal well. Additional vertical wells are scheduled to be drilled over the coming weeks.

AusTex Oil close to sourcing more exploration and development funds

Mon, 19 Mar 2012 12:40:00 +1100

AusTex Oil (ASX: AOK) could secure an additional US$10 million (A$9.4 million) to continue exploration and development of its oil and gas leases in Oklahoma and Kansas.

The company is planning to aggressively drill its Snake River project in northern Oklahoma that targets the Mississippi Lime and test drill a new prospect.

The Mississippi Lime has become the premier horizontal resource play in north central Oklahoma, attracting companies such as Chesapeake Energy (NYSE: CHK), SandRidge Energy (NYSE: SD) and Devon Energy (NYSE: DVN).

Australian players in the Mississippi include Red Fork Energy (ASX:RFE), World Oil Resources (ASX:WLR) and Sundance Energy Australia (ASX: SEA).

AusTex had recently participated in two successful vertical production wells and is now involved in the first horizontal well. Additional vertical wells are scheduled to be drilled over the coming weeks.

The funds will be made available under a conditional agreement to issue convertible notes to North American institutional investors including Iroquois Capital Opportunity Fund.

Up to US$10 million in convertible notes will be issue to these investors, each note will be convertible into a new share at a price of A$0.15 each.

AusTex will also issue 1 free option for every 2 convertible notes issued. These options will have an exercise price of A$0.20 within 3 years of shareholder approval for the issue, which is expected on 3 May 2012.

The fund currently holds 8% of AusTex’s fully paid shares on issue.

Proceeds from the issue will also assist the company in finalising a listing on the Toronto Stock Exchange this year.

This will give the company access to a market that better understands the opportunities it is unlocking in North America, and in turn provide a share price that more closely reflects the assets it holds.

AusTex Oil spuds Mississippi Lime horizontal well in Oklahoma

Wed, 14 Mar 2012 12:20:00 +1100

AusTex Oil (ASX: AOK) has spudded the Balder 1-30N horizontal development well targeting the Mississippi Lime formation in the Snake River Project in Kay County, Oklahoma.

The project targets 400 to 500 million barrels of oil equivalent with more than half of that made up of condensates or natural gas liquids.

Balder 1-30N is being drilled on a 320 acre spacing and is expected to cost about US$3.1 million (A$2.95 million) to drill and complete.

It is located directly west of AusTex’s recently completed Mississippi Lime producing wells.

The Mississippi Lime has become the premier horizontal resource play in north central Oklahoma, attracting companies such as Chesapeake Energy (NYSE: CHK), SandRidge Energy (NYSE: SD) and Devon Energy (NYSE: DVN).

Australian players in the Mississippi include Red Fork Energy (ASX:RFE), World Oil Resources (ASX:WLR) and Sundance Energy Australia (ASX: SEA).

AusTex has a 12.25% working interest (9.5% net revenue interest) in the Balder 1-30N well.

AusTex Oil drills successful Kansas Arbuckle Lime oil well, production testing to start soon

Thu, 08 Mar 2012 15:20:00 +1100

AusTex Oil’s (ASX:AOK) Ludwick-1 well targeting the Arbuckle Lime in Rice County, Kansas has encountered multiple breaks in the target horizon with moveable hydrocarbons.

Drill stem testing over a 51 foot (15.5 metre) section of the Arbuckle interval between 3,237 feet and 3,288 feet flowed 19.29 barrels of 42 degrees API oil along with some gas in one hour.

AusTex said the results were very encouraging and the well will be completed for oil production testing.

Ludwick-1 is located on the Central Kansas Uplift in an undrilled 3D closure separate from the Chase Silica field that surrounds it.

Chase Silica has produced over 28 million barrels of oil.

AusTex holds a 50% working interest (38% net revenue interest) in the 3200 acre (13 square kilometre) Ellsworth Project that holds Ludwick-1.

Austex Oil looking for partners in the Mississippi Lime, poised to add more oil output

Tue, 06 Mar 2012 12:40:00 +1100

Austex Oil (ASX: AOK) will enjoyed an increase to its oil production after the operator decided to complete the Adams-1 well in Noble County, Oklahoma, for oil production testing.

The company added it is currently in discussions with other operators and external parties with regards to ongoing opportunities to jointly develop its operated projects, which cover about 16,000 acres.

A number of joint ventures have been announced by other operators in recent months as the preferred method to expedite regional development as the Mississippi Lime play is derisked with consistent well success.

The Mississippi Lime has become the premier horizontal resource play in north central Oklahoma, attracting companies such as Chesapeake Energy (NYSE: CHK), SandRidge Energy (NYSE: SD) and Devon Energy (NYSE: DVN).

Australian players in the Mississippi include Red Fork Energy (ASX:RFE), World Oil Resources (ASX:WLR) and Sundance Energy Australia (ASX: SEA).

Drilling samples and logs had confirmed the Adams-1 well had encountered a 310 foot gross section of the Mississippi Lime interval with oil shows.

Wireline logs indicated four separate intervals within the Mississippi Lime and Chat with porosity of more than 8%.

Austex holds a 10% working interest and 8% net revenue interest in the well, which is about 3.2 kilometres southeast of its operated and producing Snake River project.

AusTex Oil in voluntary suspension to finalise capital raising

Wed, 15 Feb 2012 11:50:00 +1100

AusTex Oil (ASX: AOK) has been granted a suspension from quotation at the company’s request, pending the release of a proposed capital raising.

The company entered a trading halt on Monday February 13, and was due to come out of the halt today.

However, AusTex has requested the suspension of its shares to provide more time to finalise the capital raising.

The suspension is expected to last no longer than 48 hours, and will be lifted by the release to the market of an announcement regarding the finalisation of the capital raising.

AusTex has recently been active at the second Mississippi Lime well in the Snake River Project in northern Oklahoma.

While AusTex has not given any clues as to where the potential capital injection will be allocated, the company has been active at the second Mississippi Lime well in the Snake River Project in northern Oklahoma.

The well flowed at an average rate of 90 barrels of oil equivalent per day during a 30 day production test.

AusTex holds a 100% working interest (80% net revenue interest) in the Snake River Project.

In addition, earlier this year AusTex acquired a 70% working interest (58.8% net revenue interest) in over 8000 acres (32.37 square kilometres) of Mississippi Lime acreage in neighbouring Kansas.

AusTex Oil granted halt pending capital raising announcement

Mon, 13 Feb 2012 12:30:00 +1100

AusTex Oil (ASX: AOK) has been granted a trading halt by the ASX pending the release of a proposed capital raising, with the company's shares placed in pre-open.

AusTex has not yet indicated where the potential capital injection will be allocated, but the company has recently been active at its second Mississippi Lime well in the Snake River Project, northern Oklahoma.

At the end of last month the company announced that the well flowed at an average rate of 90 barrels of oil equivalent per day (boepd) during a 30 day production test.

AusTex holds a 100% working interest (80% net revenue interest) in the Snake River Project.

The production figures are a good sign for AusTex, which had also earlier this year acquired a 70% working interest (58.8% net revenue interest) in over 8000 acres (32.37 square kilometres) of Mississippi Lime acreage in neighbouring Kansas.

Activity by other companies in the Mississippi Lime have also been picking up with Sandridge Energy forming a US$1 billion (A$943 million) alliance with Spanish giant Repsol to develop leases within the play in northwest Kansas.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 15 February.

AusTex Oil expects quick cost recovery from second Mississippi Lime well

Mon, 30 Jan 2012 15:30:00 +1100

AusTex Oil (ASX: AOK) expects to recover within six months the cost of its second Mississippi Lime well in the Snake River Project, northern Oklahoma, after it flowed at an average rate of 90 barrels of oil equivalent per day (boepd) during a 30 day production test.

The ETU 14-5 well was tested using an electric submersible pump and was shut in at various times for final adjustments, which had clearly allowed the company to boost production up from the previous 85boepd.

Peak production of 90 barrels of oil and 100,000 cubic feet of gas was noted on January 14. Early production from ETU 14-5 and the earlier ETU 15-4, which are part of a planned 10 vertical well program to develop the Mississippi Lime formation, have already contributed to a more than 50% increase in the AusTex’s production from 135 boepd to 215 boepd during the first 14 days of January.

Data from the 10 well program will be used to finalise locations for horizontal development later this year.

The production figures are a good sign for AusTex, which had earlier this year acquired a 70% working interest (58.8% net revenue interest) in over 8000 acres (32.37 square kilometres) of Mississippi Lime acreage in neighbouring Kansas.

Activity by other companies in the Mississippi Lime have also been picking up with Sandridge Energy forming a US$1 billion (A$943 million) alliance with Spanish giant Repsol to develop leases within the play in northwest Kansas.

AusTex holds a 100% working interest (80% net revenue interest) in the Snake River Project.

AusTex Oil raises US$6m for development of U.S. oil and gas assets

Fri, 17 Jun 2011 15:35:00 +1000

AusTex Oil (ASX: AOK) has raised US$6 million through a private placement of 60 million shares at A$0.10 each, along with 30 million free options with an exercise price of A$0.15 each with a three year expiry date from issue.

The private placement is to a group of New York based sophisticated and professional investors to fund the continued development of its producing oil and gas assets in Oklahoma and Kansas.

The assets include the company's significant acreage position in the Mississippi Lime play, one of the most attractive new horizontal oil plays in North America.

Importantly, AusTex has established a strong initial land position in what is considered to be the heart of the play in Kay and Noble counties.

The placement represents another strategic milestone for the company as its goal was to attract US based investors in the lead up to AusTex’s proposed North American listing.

The private placement was lead by specialist oil and gas investor Iroquois Capital Opportunity (ICO) Fund, LP.

Daniel Lanskey, AusTex's managing director, said "we are very pleased to have the support of Iroquois Capital Opportunity Fund.

"Their involvement validates the potential of the company and the underlying value of our portfolio of oil and gas assets. We are very excited about the team of people now in place and this injection of capital will expedite the development of our properties.”

The agreement for the placement was finalised on Thursday 16 June and is subject to shareholder approval at an extraordinary general meeting of shareholders to be held shortly.

US$2.2million will be raised in the meantime by way of promissory notes that compulsorily convert to fully paid ordinary shares and options upon shareholder approval.

The additional $US3.8 million will be received upon shareholder approval of the placement.

In order to expedite oil and gas development AusTex has appointed an additional senior production engineer and a new senior geologist to its U.S. based technical team.

Tulsa-based consulting engineers Plaster and Wald have been retained to design drilling and completion of horizontal wells.

The company has also signed a one year mandate with Iromad LLC, a specialised oil and gas consultancy to provide ongoing technical and operational expertise.

Iromad has been working with AusTex Oil to optimise production from existing wells and infrastructure as well as providing input into the upcoming work program.

Austex Oil's Lancaster #9 well is being completed for production

Tue, 07 Dec 2010 10:09:00 +1100

Production testing on the Austex Oil (ASX: AOK) Lancaster #8 well has stabilised at 20 barrels of oil per day and associated gas from a 3 foot interval of the Arbuckle Formation at 2,550 feet, with the completed well to pay out in seven months.

The company's Lancaster #9 well is being completed for production in the Simpson Series Formations, with logs indicating the well intersected 150 feet of the hydrocarbon bearing zone between 2,400 feet and 2,550 feet.

Next week the well will be stimulated with hydraulic fracturing and production testing.

Austex holds a 100% working interest and 81.25% net revenue interest in the project, which is located within the Lancaster Lease Group in Tulsa County, Oklahoma, USA.

AusTex Oil starts workover activity at East Tonkawa Unit, sets sail for 2011

Tue, 23 Nov 2010 15:06:00 +1100

With recent drilling success in Tulsa County, growth in its footprint of leases in Kansas and Oklahoma along with growing oil production in both states, and planned listing on the Toronto Stock Exchange, 2011 is shaping up as pivotal year for AusTex.

Austex Oil reaches 2,633 feet depth, confirms hydrocarbons at Lancaster #9 Well

Mon, 22 Nov 2010 10:46:00 +1100

Drilling by US focused junior oil and gas producer AusTex Oil (ASX:AOK) successfully reached a total depth at 2,633 feet at the Lancaster No.9 Well within the the Lancaster Lease Group in Tulsa County, Oklahoma, on Friday 19 November.

The Lancaster #9 is a step out development well located to the east of the successful Lancaster #8 well, and is targeting the Simpson Series formations and with an expected total depth of 2,550 feet.

During drilling operations free oil and gas was displaced to the surface.

Well logs and samples collected confirm hydrocarbons have been intersected in multiple zones including three of the Simpson Series sandstones and the Arbuckle formation.

The well has logged structurally higher than the Lancaster #8 well and has confirmed over 100 feet of oil and gas payzones in the Simpson Series formation in both wells.

Reviews of the well log data and surface geology show the formations follow the surface structural high at the location with additional well sites available at 10 acre spacing in this part of the lease.

The well has been cased and will be completed for production testing in the Simpson Series formations.

Production testing on the Lancaster #8 is ongoing and the well is currently producing oil, gas and associated water and was this week refitted with a larger engine to enable a greater quantity of fluid to be recovered.

AOK holds a 100% working interest and 80% net revenue interest in this section of the project.

AusTex Oil kicks off drilling on Lancaster #9 Well in Oklahoma

Fri, 12 Nov 2010 11:06:00 +1100

US focused junior oil and gas producer AusTex Oil (ASX: AOK), has spudded and commenced drilling on the Lancaster #9 Well within the the Lancaster Lease Group in Tulsa County, Oklahoma.

The Lancaster #9 is a step out development well located to the east of the successful Lancaster #8 well, and is targeting the Simpson Series formations and with an expected Total Depth of 2,550 feet.

Drilling operations should be completed within 4-5 days.

Production testing on the Lancaster #8 is ongoing and the well is currently producing oil, gas and associated water and was this week refitted with a larger engine to enable a greater quantity of fluid to be recovered.

Stabilised production numbers for both oil and gas volumes should be available within the next 2 weeks.

AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in this project.

AOK has a market capitalisation of A$27.45 million and had A$3.34 million cash at the end of the September quarter.

AusTex Oil allots shares from Rights Issue

Wed, 19 May 2010 12:14:00 +1000

AusTex Oil (ASX: AOK) has issued and alloted 33,884,998 fully paid ordinary shares and 16,942,510 options pursuant to its underwritten non-renounceable Rights Issue to shareholders announced to the market on 23 March 2010.

The company said quotation is sought from the ASX in respect to these shares and options.

The proceeds of the Rights Issue will be used to predominately fund the ongoing development drilling and exploration of the company’s oil and gas interests in Kansas and Oklahoma, for working capital purposes and for the costs of the Offer.

AusTex Oil drilling successful at Baggett #33-3 well

Wed, 05 May 2010 08:57:00 +1000

AusTex Oil (ASX: AOK) has reported on the drilling results at wells in Oklahoma and Kansas with Baggett #33-3 considered a success and Clark #3 plugged.

Drilling on the Baggett #33-3 well in Tulsa County, Oklahoma, reached a Total Depth (TD) of 2,490 feet on 29 April 2010 (Oklahoma Time).

Well logs indicate the presence of hydrocarbons in the Prue, Upper Skinner, Red Fork, Tanneha and Wilcox formations. Casing has been set and the well is being completed for production.

AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in the well. Plans are underway to drill the Ownby #2 well to the west of the recently successful Baggett #33-1 and Baggett #33-2. Drilling is scheduled to commence within 3 weeks.

Drilling on the Clark #3 well within the Cooper Project in Sheridan County, Kansas, reached TD of 4,146 feet on 30 April 2010 (Kansas Time).

Oil shows were present in samples from the Howard, Toronto and Lansing-Kansas City formations. None of these produced on drill stem tests. The well has been plugged.

This well tested the northwest limits of the seismically defined closure. Logs indicate that the reservoir quality is variable with thinning of the target intervals at this location.

This variability is commonplace in northwest Kansas. The extent of the excellent quality reservoirs encountered in the Clark #1 will be determined by further development drilling.

Austex said drilling of the Clark #4 development well, northeast of the Clark #1 well, is scheduled for the first half of June 2010.

AusTex Oil commences drilling on Baggett #3-33 well in Oklahoma

Wed, 28 Apr 2010 10:15:00 +1000

US-focussed oil and producer and explorer AusTex Oil (ASX:AOK), has kicked-off drilling of the Baggett #3-33 Well on the Lancaster Lease Group, in Tulsa County, Oklahoma.

The Baggett #3-33 is a step out well to the east of the successful Baggett #1-33 and Baggett #2-33 wells.

Surface pipe has been set at 318 feet and drilling operations are continuing. Planned Total Depth of 2,500 feet should be reached within the next 48 hours.

The well is targeting the Red Fork, Tanaha, Wilcox and Arbuckle Formations.

AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in this project.

AusTex Oil kicks off drilling on Clark #3 Well

Fri, 23 Apr 2010 08:47:00 +1000

AusTex Oil (ASX: AOK) commenced drilling at the wildcat Clark #3 Well at 8.00am, Kansas Time, Thursday 22 April 2010.

The Clark #3 is a step out well to the successful Clark #1 well and is targeting the Topeka and Lansing-Kansas City formations.

The company said drilling operations should be completed in 7-10 days with an expected Total Depth of 4200 feet.

The operator, Castle Resources Inc., reported that final testing and state approval of the water disposal well and surface facilities have been completed.

The Clark #1 well encountered oil in two formations with initial flow on test of 250 barrels of oil per day from the Topeka formation.

Testing of the Lansing-Kansas City formation produced oil at the rate of 230 barrels of oil per day with associated water.

The operator plans to produce the well from both formations now that the water disposal system is operational.

AOK holds a 53% Working Interest and 45% Net Revenue Interest in this project.

AusTex Oil to up the ante, more drill targets in Oklahoma

Tue, 06 Apr 2010 11:13:00 +1000

US-focussed oil and gas producer AusTex Oil (ASX: AOK) has successfully deepened the J&O #1 well in Oklahoma to 3230 feet as a part of the ongoing evaluation of leases held by AOK.

The J&O #1 well, part of the Sweet Lease in Pawnee County was originally drilled in 1948 to a depth of 2930 feet and oil was produced from the Upper Red Fork formation.

Total depth will be be reached over the weekend.

AOK holds a 100% working interest and 82.5% net revenue interest in this project and is the operator.

Speaking from Tulsa, executive director of AOK Richard Adrey said, “The successful deepening of the J&O #1 well further confirms the opportunity we have."

"Our technical team has identified over 20 development locations on the Sweet Lease in addition to the current development on the Lancaster Lease Group. We are now able to plan the development of our leases at a faster pace with the funds to be raised from the recently announced Rights Issue”.

During drilling operations, oil and gas was displaced to the surface at the J&O #1 well. Logs indicate the well intersected the Lower Redfork formation between 3050 feet and 3076 feet and the Bartlesville formation between 3136 feet and 3204 feet.

The Lower Redfork Formation contains 13 feet of net pay, with an additional 40 feet of net pay present in the Bartlesville Formation, for 53 feet of net pay, over the two zones.

The well is to be completed in the Bartlesville formation for oil production. The Sweet #4A and Sweet #5A are currently producing oil from the Bartlesville Formation on this lease.

Lancaster Lease Group – Tulsa County

At the Mayo Moore #7 oil and gas well, the well has now been completed for production in the Big Lime and Oswego Lime formations. Current production is 10 barrels of oil per day and 50 thousand cubic feet of gas per day.

This well is a shallow well with a Total Depth of 1,135 feet, and was drilled as a 50 foot offset to the Mayo Moore #5 to test the shallower limestone formations.

With a total investment of $108,000 for the completed well, payback period for AOk is expected to be achieved within 6 months.

AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in this project and is the Operator.

AusTex Oil to raise A$5 million through underwritten Rights Issue to Shareholders

Wed, 24 Mar 2010 08:23:00 +1100

AusTex Oil (ASX: AOK) has announced a fully underwritten Rights Issue to Shareholders to raise approximately $5 million after costs (Offer).

The Offer will allow shareholders to subscribe for one share (New Share) for every five shares held at 5pm on Monday, 19 April, 2010 at the issue price of $0.16 per New Share together with one attaching option (New Option) for every two New Shares subscribed for.

The New Options will be exercisable at $0.25 each on or before 1 December 2011. The company will be seeking quotation of the New Options on the Australian Securities Exchange. Other terms attaching to the New Options will be set out in a prospectus to be issued by the company in relation to the Offer.

Pursuant to the Rights Issue the company will issue up to 33,885,000 New Shares and 16,942,500 New Options in the company, to raise up to $5,421,600 (excluding any proceeds upon exercise of any of the New Options) before costs.

As part of Novus Capital Limited’s (Novus) ongoing relationship with the company as Broker and Corporate Adviser, Novus has agreed to fully underwrite the Rights Issue, subject to commercial terms and conditions to be announced.

The proceeds of the Rights Issue will be used to predominately fund the ongoing development drilling and exploration of the company’s oil and gas interests in Kansas and Oklahoma, for working capital purposes and for the costs of the Offer.

AusTex Oil updates drilling tests at Eisenhour #1 well in Kansas

Tue, 16 Mar 2010 14:17:00 +1100

AusTex Oil (ASX: AOK) has reported an update on operations in Kansas. The operator, Castle Resources Inc., advised that drilling of the wildcat Eisenhour #1 well reached a Total Depth (TD) of 4100 feet overnight.

The well had oil shows in the Cherokee formation between 3970 feet and 4009 feet, however, Drill Stem Tests conducted on two intervals failed to recover commercial oil or gas. The well has been plugged and abandoned.

The 3200 acre McCracken Project is located in Ness and Rush Counties, Kansas, near the town of McCracken. AOK holds a 63.92% Working Interest and 52.4% Net Revenue Interest in this project.

The company's Cooper Project has also been updated. Sheridan County Drilling operations are underway on the water disposal well located south of the successful Clark #1 Well.

Castle Resources Inc., advised that testing of the disposal system should commence next week.
Once the disposal well is completed, oil production from the Lansing-Kansas City formation in the Clark #1 well is planned.

During completion of the well, the Lansing-Kansas City formation tested at 230 barrels of oil per day with associated water, with the Toronto formation testing at 250 barrels of oil per day. The well has been producing from the Lansing-Kansas City formation since late January.

The company said drilling will commence on Clark #2 Well at the Cooper Project, Sheridan County.

Permits have been obtained to drill another 3 wells to offset the Clark #1 well with drilling expected to commence by the end of March 2010. AOK holds a 53% working interest and a 45% net revenue interest in this project.

AusTex Oil stepping-up Oklahoma production

Thu, 11 Mar 2010 06:54:00 +1100

US-focussed oil and gas producer AusTex Oil (ASX:AOK) has provided an update on operations on leases in Oklahoma.

Mayo Moore #7

Following completion and testing of the Oswego Lime which tested at 75 thousand cubic feet of gas per day (MCF/D), the well is also being completed in the Big Lime. Currently the Radial Jet Enhancement rig is onsite with laterals being cut on three separate levels of the formation between 902 feet and 908 feet.

The well is expected to be completed this week with further production testing to follow.

Baggett #1-33

The well was originally completed for production in the Wilcox Formation at 2200 feet. The produced formation water was intended for pressure maintenance in the Red Fork formation, but proved incompatible with shallower formation fluids. Following chemical analysis a decision was made to plug the Wilcox formation and re-complete the well in the Red Fork formation at 1550 feet.

Production testing of the well began yesterday with an initial production rate of 78 barrels of oil per day (BOPD).

Baggett #2-33

Since completion in the Red Fork formation during January 2010, the well has continued to flow oil and gas to the surface at a rate of 5 barrels of oil per day and 250 MCF/D of gas. The well will be fitted with a down hole pump as soon as the ground dries sufficiently to move a work over rig onsite.

Drilling will soon commence on the Ownby #1 Well, the next step out well have been hampered by wet weather.

The Ownby #1 well is located south of the Mayo Moore #1 and west of the Baggett #1-33 wells. The drilling contractor is on standby and drilling is expected to commence within 2 weeks.

A planned total depth of 2500 feet will test the Arbuckle Formation and other known shallower formations. Reservoir Management Plan As part of the first stage of maintaining reservoir pressure in the Red Fork formation, water injection via the Mayo Moore #3 well has commenced.

Further development drilling on the lease will determine the reservoir structure and additional injection wells are planned. Following further review of proposals for a Natural Gas Liquid stripping plant, management of AOK has received final proposals from two vendors. A decision is expected later this week with a delivery time on the plant indicated at six weeks.

AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in this project.

AusTex Oil kicks off drilling at Eisenhour #1 Well in Kansas

Tue, 09 Mar 2010 08:09:00 +1100

AusTex Oil (ASX: AOK) has commenced drilling of the wildcat Eisenhour #1 Well, located in the 3200 acre McCracken Project in Ness and Rush Counties, Kansas, near the town of McCracken. The drilling started at 9.30am CDT Monday 8 March 2010.

The location for the Eisenhour #1 Well was chosen following a technical review of open-hole logs from the Billie #1 Well (drilled in 2009) along with 3D seismic data.

Daniel Lanskey, Managing Director, says the well is targeting the Lansing-Kansas City and Cherokee formations with an expected Total Depth of 4400 feet on a structural high with a four-way closure identified by the Company’s geophysicist.

Drilling operations are scheduled to take between 7 – 10 days.

AOK holds a 63.92% Working Interest and 52.4% Net Revenue Interest in this project.

AusTex Oil shares last traded at 19 cents.

AusTex Oil finds oil and gas again in Oklahoma

Fri, 19 Feb 2010 09:12:00 +1100

AusTex Oil (ASX:AOK) has struck success again, with the Mayo Moore #7 Well in Oklahoma displacing oil and gas to the surface during drilling operations.

The drilling reaching total depth of 1,135 feet on Wednesday afternoon.

Logs were completed overnight showing that the well intersected the Big Lime Formation between 906 feet and 962 feet and the Oswego Lime Formation between 1,082 feet and 1,120 feet. The Big Lime Formation contains 16 feet of net pay, with an additional 14 feet net pay present in the Oswego Lime Formation.

The well has been cased and will be completed for oil and gas production.

AusTex Managing Director Dan Lanskey said the well was drilled 50 feet to the west of the Mayo Moore #5 Well, which is producing oil and gas from the deeper Redfork Formation.

"We are now set to produce from five separate conventional formations on the lease," Mr Lanskey said.

"There are also coal seams and shale formations present in each well that are being produced in the north of Tulsa County.

"Permits for further development wells are in hand and we will continue drilling over the coming months.”

The company holds a 100% Working Interest and 81.25% Net Revenue Interest in this project.

AusTex Oil, which was listed on the ASX in January 2008, is focused on reworking and development of oil and gas leases in the USA.

The company produces oil and gas from leases in Oklahoma and Kansas. Since listing, AusTex has increased its lease interests from 1,000 acres to 69,000 acres.

AusTex Oil commences drilling at Mayo Moore #7 Well

Wed, 17 Feb 2010 12:37:00 +1100

Sydney-based oil and gas producer AusTex Oil (ASX:AOK) has kicked off drilling of the Mayo Moore #7 Well in Oklahoma, United States.

Surface casing has been set at 315 feet with cement circulated to the surface successfully.

TD of 1100 feet is expected to be reached this afternoon.

AusTex holds a 100% Working Interest and 81.25% Net Revenue Interest in this project.

The company is focused on reworking and development of oil and gas leases in the USA. It produces oil and gas from leases in Oklahoma and Kansas. Since listing, AusTex has increased its lease interests from 1,000 acres to 69,000 acres.

AusTex Oil kicks off drilling on Mayo Moore #7 Well

Mon, 15 Feb 2010 12:31:00 +1100

United States-focused AusTex Oil (ASX:AOK) has commenced drilling of the Mayo Moore #7 Well in Oklahoma.

The well is a 50 foot offsetting twin to the recently successful Mayo Moore #5 Well, which is producing oil and gas from the Red Fork Formation at 1,500 feet.

This afternoon, shares in the company jumped 9.1% to 18c on the Australian Securities Exchange.

MM #7 is targeting the shallow Big Lime Formation at 1,100 feet, which discharged free oil and gas into the pits during drilling of Mayo Moore #5.

If successful, the Big Lime Formation will be the fifth producing formation on the 650 acre Lancaster Project, including the Arbuckle, Wilcox, Tanneha, Red Fork and Big Lime formations.

AusTex holds a 100% Working Interest and 81.25% Net Revenue Interest in the project.

The company, which was listed on the ASX in January 2008, is focused on reworking and development of oil and gas leases in the USA. It produces oil and gas from leases in Oklahoma and Kansas. Since listing, AusTex has increased its lease interests from 1,000 acres to 69,000 acres.

AusTex Oil increases revenues by 100% during quarter

Fri, 29 Jan 2010 13:37:00 +1100

US-focussed oil and gas producer, AusTex Oil (ASX: AOK) managed a revenue increase of 100% quarter on quarter. Oil and gas production now exceeds 200 bopd and 400mcf/d. The quarter included a new oil discovery, the Cooper Project in Kansas.

Development of the Lancaster Lease Group continues in Oklahoma.

Revenue from operations for the quarter was A$356,000 net to AOK after royalties and taxes. During the three months ending 30 September 2009, cash expended for exploration and project development was $2,001,000.

AOK has a 100% Working Interest (WI); 81.25% Net Revenue Interest (NRI) in the Lancaster Lease Group of 650 acres. Phase II of development drilling commenced in the 3rd week of September 2009.

As at 31 December, 8 wells had been successfully drilled and 4 wells were completed for oil and gas production. Logs and samples have identified multiple hydrocarbon zones. The Baggett #1 and #2 wells are waiting final electrical and flow line connections before being put into production. The Lancaster #5A and Mayo Moore #3 wells are being completed as injection wells as part of the reservoir management plan.

At the time of this report production from the Lease was being capped at 90 bopd and 420 mcf/d.

AusTex Oil holds interests in oil and gas leases located in the State of Kansas through a wholly owned subsidiary International Energy Corporation (Kansas). The company is the major working interest partner with Castle Resources Inc., as operator, a private oil and gas operator based near Hays, Kansas.

AOK holds a 53% working interest; 46% Net Revenue Interest in the Cooper Project in Sheridan County – 26,500 acres.

A review of seismic data using well log information was completed in Kansas during November 2009. As a result of re-calibration, new mapping was finalised by the consulting geophysicist. The Clark #1 well reached total depth of 4128 feet in the second week of December.

Two formations, the Lansing-Kansas City at 3838 feet and the Toronto at 3826 feet were tested for oil production. The Lansing-Kansas City produced 230 bopd and 70 bopd of water during testing and the Toronto produced at over 250 bopd with no discernable water. At the time of this report the well has been completed for production in the Toronto Formation and is producing at 250 bopd. An application to recomplete an old well south of the Clark as a water disposal well has been lodged.

Cash reserves at December end were $3.6m.

During the quarter the AOK share price appreciated by 43% to $0.20.