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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 updates drilling tests at Eisenhour #1 well in Kansas

Tuesday, March 16, 2010

AusTex Oil (ASX: AOK) has reported an update on operations in Kansas. The operator, Castle Resources Inc., advised that drilling of the wildcat Eisenhour #1 well reached a Total Depth (TD) of 4100 feet overnight.

The well had oil shows in the Cherokee formation between 3970 feet and 4009 feet, however, Drill Stem Tests conducted on two intervals failed to recover commercial oil or gas. The well has been plugged and abandoned.

The 3200 acre McCracken Project is located in Ness and Rush Counties, Kansas, near the town of McCracken. AOK holds a 63.92% Working Interest and 52.4% Net Revenue Interest in this project.

The company's Cooper Project has also been updated. Sheridan County Drilling operations are underway on the water disposal well located south of the successful Clark #1 Well.

Castle Resources Inc., advised that testing of the disposal system should commence next week.
Once the disposal well is completed, oil production from the Lansing-Kansas City formation in the Clark #1 well is planned.

During completion of the well, the Lansing-Kansas City formation tested at 230 barrels of oil per day with associated water, with the Toronto formation testing at 250 barrels of oil per day. The well has been producing from the Lansing-Kansas City formation since late January.

The company said drilling will commence on Clark #2 Well at the Cooper Project, Sheridan County.

Permits have been obtained to drill another 3 wells to offset the Clark #1 well with drilling expected to commence by the end of March 2010. AOK holds a 53% working interest and a 45% net revenue interest in this project.

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