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AusTex Oil Limited increases oil production at East Tonkawa unit

AusTex Oil Limited has reported the following update on operations in USA.

Northern Oklahoma - Snake River Project, Kay County
East Tonkawa Unit (907 acres) - AOK 100% WI 81.25% NRI

ETU #4-1 Well

The #4-1 well has been put into production following recompletion in the Cleveland Formation with 50 feet of net pay perforated between 3,560 feet and 3,610 feet. Oil production for the first 7 days averaged 40+ Barrels of Oil per Day (BOPD) plus associated gas. The pumping unit is running with a gas engine fuelled by formation gas.

ETU #3-2 Well

Recompletion operations on the #3-2 well are well advanced with the well expected to be put in production within 10 days. Hydraulic fracture stimulation was completed today on a 50 foot perforated interval in the Cleveland Formation, duplicating the process used on the #4-1 well.

Background on East Tonkawa Unit

Oil was first discovered in the Unit during 1955, with 3.6 million barrels of oil produced from the Lower Layton, Red Fork and Mississippi Chat Formations by Sun Oil Company, but has been relatively inactive for the past 15 years. A review of well logs and geological reports show that ten existing wells have multiple formations behind the pipe that have not been produced. Initial focus is on the recompletion of these wells in the Cleveland Sand.

In addition, existing wells completed in the Mississippi Chat are to be reworked. The second stage of development will include an infill vertical well program. The deeper Mississippi Lime Formation is currently being targeted in the region with Horizontal Well Completions. AOK previously announced that a Horizontal Drilling Program is being planned for the second half of 2011. This lease is a part of 5,000 acre project which is continuing to be leased and has been named the Snake River Project.


 

03/08/2011

 

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