For US oil and gas producer AusTex Oil (ASX: AOK), shareholders received a lift when gas sales commenced from the BlueHawk Project, Osage County, Oklahoma - soon to add to revenues and cash flow.
AOK has a 50% working interest and a 43% net revenue interest in this well and BlueHawk project.
The Quarrels #11‐2 Well is producing 160,000 cubic feet per day of gas through a 3/32 inch choke. The well is completed in the Bartlesville formation at 1,720 feet. Total investment by AOK in this well: a modest $80,000.
A pipeline is under construction – 1.5 miles to sales point. New wells targeting identified Bartlesville Gas Arbuckle oil prospects. The well tested 305 Mcf per day gas at Quarrels #11‐2 Well. A target second well permitted and for completion 2H 2009. There is a 40 acre spacing allowing four wells.
A drilling permit for the Quarrels #1‐1 Well has been issued and the well is scheduled to be drilled during the September Quarter 2009. The 1‐1 Well will target the Bartlesville and Arbuckle formations with a planned TD of 2,200 feet and is a step out well to the Quarrels #11‐2 Well.