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