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AusTex Oil Updates on Exploration and Development Activities in Kansas

AusTex Oil provides operation update to shareholders on its exploration and development programs carried out in Northwest Kansas.

Castle Resources, the well operator, has announced that the Melanie #1 well attained a total depth (TD) at 4,600 ft in the Arbuckle formation. The well has been cased and cemented, and is yet to be completed for producing oil. Mississippi Limestone and Lansing Kansas City intervals together with other hydrocarbon-bearing formations were intersected in the well during operations.

AusTex performed a drill stem test on the Lansing Kansas City’s "G" zone between 3,966 and 3,985 ft, which showed a test flow rate of about 100 barrels in a day together with formation water. Hydrocarbons of commercially producible nature were observed in samples and well logs. The company is completing the well to produce oil from the Lansing Kansas City interval.

AusTex has confirmed that the operator has reported that the Mollhagen #8 well is linked to a commercial water disposal system. The well is now on the pump and producing from the Arbuckle interval. It constantly generates 16 barrels of oil and 200 barrels of water in a day, allowing the pump jack to run at a slower rate in order to minimize the chances of coning. Risk is reduced on these lower production water-drive wells, which deliver an exceptional return on investment and provide a constant level of production.

According to Richard Adrey, AusTex’s Executive Chairman, the Melanie#1 well is the initial well to be drilled through the Cooper project’s Mississippi Lime interval and the company is encouraged by these preliminary results. The company is planning for oil production from the Lansing Kansas City formation, which is akin to the adjacent Clark #1 well, and gives enough time to conduct complete analysis of the cuttings and logs obtained from the Mississippi Lime interval.

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G.P. Thomas

Written by

G.P. Thomas

Gary graduated from the University of Manchester with a first-class honours degree in Geochemistry and a Masters in Earth Sciences. After working in the Australian mining industry, Gary decided to hang up his geology boots and turn his hand to writing. When he isn't developing topical and informative content, Gary can usually be found playing his beloved guitar, or watching Aston Villa FC snatch defeat from the jaws of victory.

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