ASX / Media Release
21 March 2017
AUSTEX ACQUIRES NEW DISPOSAL WELL AND ACREAGEACQUISITION HIGHLIGHTS
- AusTex closes on next acquisition;
- Approximately 720 acres in Kay County, Oklahoma near AusTex's Snake River Project;
- Acquisition includes infrastructure for saltwater disposal and 3D seismic over 4 square miles to be interpreted;
- Currently producing oil from one well;
- AusTex will be the 100% Owner and Operator; and
- Total acquisition cost of US$0.5M + leasing and drilling costs.
AusTex Oil Limited
A.C.N. 118 585 649 ASX: AOK
OTCQX: ATXDY
Corporate Snapshot
Market Cap: AU$18.0m
@ $0.032
p/share (undiluted)
Shares on issue
Ordinary: 562.5m
Preference: 220.1m
Options: 38m
Shareholders: 1,930
Directors
Michael Stone(Non-Executive Chairman)
Richard Adrey(Co-Managing Director)
Nick Stone(Co-Managing Director)
Russell Krause(Non-Executive Director)
Justin Clyne(Non-Executive Director & Company Secretary)
Contact
Level 9, 2 Bligh Street,
Sydney NSW 2000 AUSTRALIA Tel +61 2 9238 2363
Fax +61 2 8088 7280
www.austexoil.com
https://twitter.com/AusTexAOK
United States oil and gas producer, AusTex Oil Limited (ASX: AOK, OTCQX: ATXDY, AusTex or Company), is pleased to advise that the Company has completed a further acquisition as part of its growth strategy comprising a 100% working interest in ~720 acres in Kay County, Oklahoma adjacent to the Company's key Snake River Project.
The acreage currently produces around 20 bopd of level gross production from one well but also includes a highly valuable saltwater dispoal well. AusTex will be the operator of the wells and will be drilling additional vertical wells in the area off interpretaion of 3D seismic data which will be carried out in the near future.
The acreage acquired under this transaction appears to have similar geology to the acreage which comprised the Company's original drilling program at Snake River on the East Tonkawa Unit with the Mississipian Chat as the primary target. AusTex's geologist is currently reviewing the 3D seismic and other data acquired as part of the deal with a view to identifying the highest priority drill targets for new vertical wells. AusTex is confident that new wells ain the area can be drilled and completed at a cost of circa US$350k per well all in.
In addition to the acreage, the transaction also includes infrastructure in the form of tanks, pumps and a saltwater disposal well drilled 4 years ago that all appear to have been extremely well-engineered and permitted to dispose up to 15,000 barrels per day, which would accommodate multiple vertical wells.
AusTex's management team believes that this acquisition is likely to create additional opportunities to add to the production of this acreage as well as the potential to lease additional prospective areas.
Executive Commentary
Commenting on this latest acquisition, AusTex's Co-Managing Director, Richard Adrey said:
"This acquisition, along with the acreage acquired in Creek and Lincoln Counties in Oklahoma in November, also brings to AusTex a number of benefits including new and prospective acreage, a small amount of production and valuable infrastructure."
"We look forward to reporting drilling of new wells and future production improvements along with additional lease acquisitions in the near future."
ENDS
Figure 1: Map showing the newly acquired Buffalo well in relation to the Snake River Project and AusTex's other acreage areas.
For further information please contact:Richard Adrey /Nick Stone Co-Managing Directors USA + 1 918-743-7300
Russell Krause
Non-Executive Director AUS + 61 419 365 573
https://twitter.com/AusTexAOK
About AusTex
AusTex Oil Ltd is an Exploration and Production company that is focused on the development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas. AOK holds interests in oil and gas leases, including acreage in the highly prospective Mississippi Lime Play in Northern Oklahoma and Kansas as well as in the Drumright Dome in the Lincoln and Creek Counties of Oklahoma. The Company's flagship is the 100%-owned Snake River Project in the Mississippi Lime Play.
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AusTex Oil Limited published this content on 21 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 March 2017 22:49:04 UTC.
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