AusTex Oil (ASX: AOK) is focused on reworking and development of oil and gas leases in the U.S.
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.