Project Profile
Location: Mississippian Limestone Play (Mississippi Lime) located in Northern Oklahoma and Southern Kansas
Reserves: 100,000 barrels of oil equivalent per well
Drilling Depth: 4,790 feet
United States focused oil & gas producer and explorer AusTex Oil Limited is fast-tracking the development of the 5,500 acre Snake River Project in Kay County, Oklahoma. AOK holds a 100% Working Interest and a 80% net revenue interest in the project which sits in the highly prospective Mississippian Limestone Play (Mississippi Lime) located in Northern Oklahoma and Southern Kansas. The company has completed the Blubaugh #20D-1 Disposal Well, which reached a total depth of 5,916 feet. Electronic logs have identified multiple hydrocarbon bearing zones . The well has been cased and will be capable of disposing fluid from 10 or more vertical wells and several horizontal wells. Drilling has now commenced on the first production well for the Blubaugh prospect (Blubaugh #20-1) which is located 80 feet from the disposal well. The rig is drilling ahead at 1,700 feet with an expected total depth of 4,790 feet, due to be reached in the end of May 2012. The Mississippi Lime interval is the primary target. AOK is particularly encouraged by the potential Snake River Project, with the Blubaugh Lease being just one prospective area within the 100% owned project.
The company is now fast-tracking an aggressive drilling program, with a second rig set to commence drilling before June 2012. The hydrocarbon shows from the disposal well confirm the development potential of the prospect. The vertical well spacing of 40 acres allows for up to 100 production wells to be drilled in the Snake River project area, with an estimated ultimate recovery of up to 100,000 barrels of oil equivalent per well at a cost of approximately US$650,000 per well. With production at Balder #1 expected to commence shortly, AOK will now have an interest in three more producing Mississippi Lime wells at Snake River.
Operators:
AusTex Oil Limited: Operator with 100% interest