Austin Exploration (ASX: AKK) is an oil and gas development company with assets in Australia and the United States.
Austin Exploration (ASX: AKK) believes that more exciting news is to come after production from its first Eagle Ford Shale well in Texas exceeded its pre-drill expectations.
The Krueger-1 vertical well flowed at a rate of 95 barrels of oil equivalent per day (boe/d) during a 24 hour test from the Eagle Ford following successful hydraulic fracture stimulation.
This exceeded pre-drill estimates of 60boe/d.
Production at Krueger-1 is likely to increase further after the Taylor Formation, which is currently being worked on, is brought on stream.
Once the Taylor Formation is tested, the well will be placed on mechanical pump for long term flow testing and production.
Austin also plans to re-enter 5 lesser hydrocarbon bearing zones in the future to provide additional shareholder value.
The results are a strong indicator that production could enjoy a major boost from a horizontal multi-stage frac with the company saying a 10 stage frac having the potential to provide a 10-fold uplift in production rates.
Austin will drill 2 further vertical wells at its Eagle Ford project and select the best of these 3 wells to be re-entered for horizontal drilling.
Austin holds a 93.5% working interest in the 5,000 acre Eagle Ford Shale Project, through its wholly owned subsidiary Aus-Tex Exploration.