AusTex Oil
AusTex Oil (ASX: AOK) is focused on reworking and development of oil and gas leases in the U.S.
AusTex Oil expects quick cost recovery from second Mississippi Lime well
Monday, January 30, 2012 by Bevis Yeo
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.
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