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Additional Information

Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	AOK
Latest Price:	0.11 (0.00%)
52-week High:	0.16
52-week Low:	0.07
Market Cap:	34.35M

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AusTex Oil

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

AusTex Oil in wildcat oil discovery in Kansas

Wednesday, December 09, 2009 by Proactive Investors

AusTex Oil (ASX:AOK) has made a wildcat oil discovery as drilling of the Clark #1 Well at Sheridan County in Kansas successfully reaches total depth at 4128 feet.

AusTex Oil chairman Peter Power said the news was "very pleasing" for the company.

“Our Kansas exploration is supported by a large acreage position, with 3d seismic and an extensive well database," Dr Power said.

"Our recent review, using the sonic logs from our earlier drilling, has recalibrated the seismic interpretation.

"The Clark location is the first to be drilled in our revised prospect portfolio."

Following the release of the announcement, shares in AusTex increased 2.8% to 18.5c.

The well intersected the target Lansing-Kansas City Formation between 3,838 feet and 4,074 feet.

Well logs indicate the presence of hydrocarbons in the Howard, Toronto and the Lansing-Kansas City formations. During a drill stem test conducted on the Lansing-Kansas City “A” Zone measured 820 feet of gas and 600 feet of oil was measured in the pipe with increasing flow pressure.

The well has been cased and will be completed for production, with the operator advising that production testing is planned for the first part of January 2010.

AusTex holds a 53% working interest and a 45% 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. In Oklahoma, the Lancaster Lease Group and BlueHawk Project are now connected to gas sales infrastructure, with further development wells planned on both leases.

Since listing, AusTex has increased its lease interests from 1,000 acres to 69,000 acres.

International Energy Corporation (IEC), a wholly owned subsidiary of AusTex, holds a 10 year exclusive marketing agreement for the State of Oklahoma for the patented Radial Jet Enhancement Technology. Oil and gas leases in Kansas are held in partnership with Castle Resources Inc., the Kansas operator of the Radial Jet Enhancement Technology.

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