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Additional Information

Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	AOK
Latest Price:	0.10 (5.26% )
52-week High:	0.13
52-week Low:	0.07
Market Cap:	22.59M

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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 increases revenues by 100% during quarter

Friday, January 29, 2010

US-focussed oil and gas producer, AusTex Oil (ASX: AOK) managed a revenue increase of 100% quarter on quarter. Oil and gas production now exceeds 200 bopd and 400mcf/d. The quarter included a new oil discovery, the Cooper Project in Kansas.

Development of the Lancaster Lease Group continues in Oklahoma.

Revenue from operations for the quarter was A$356,000 net to AOK after royalties and taxes. During the three months ending 30 September 2009, cash expended for exploration and project development was $2,001,000.

AOK has a 100% Working Interest (WI); 81.25% Net Revenue Interest (NRI) in the Lancaster Lease Group of 650 acres. Phase II of development drilling commenced in the 3rd week of September 2009.

As at 31 December, 8 wells had been successfully drilled and 4 wells were completed for oil and gas production. Logs and samples have identified multiple hydrocarbon zones. The Baggett #1 and #2 wells are waiting final electrical and flow line connections before being put into production. The Lancaster #5A and Mayo Moore #3 wells are being completed as injection wells as part of the reservoir management plan.

At the time of this report production from the Lease was being capped at 90 bopd and 420 mcf/d.

AusTex Oil holds interests in oil and gas leases located in the State of Kansas through a wholly owned subsidiary International Energy Corporation (Kansas). The company is the major working interest partner with Castle Resources Inc., as operator, a private oil and gas operator based near Hays, Kansas.

AOK holds a 53% working interest; 46% Net Revenue Interest in the Cooper Project in Sheridan County – 26,500 acres.

A review of seismic data using well log information was completed in Kansas during November 2009. As a result of re-calibration, new mapping was finalised by the consulting geophysicist. The Clark #1 well reached total depth of 4128 feet in the second week of December.

Two formations, the Lansing-Kansas City at 3838 feet and the Toronto at 3826 feet were tested for oil production. The Lansing-Kansas City produced 230 bopd and 70 bopd of water during testing and the Toronto produced at over 250 bopd with no discernable water. At the time of this report the well has been completed for production in the Toronto Formation and is producing at 250 bopd. An application to recomplete an old well south of the Clark as a water disposal well has been lodged.

Cash reserves at December end were $3.6m.

During the quarter the AOK share price appreciated by 43% to $0.20.

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