Gustavson Associates Independent Resources Report • Independent consultant Gustavson Associates has confirmed the potential of Austin Exploration’s two flagship projects in Colorado and Texas. • The international oil, gas and mining consultant makes P50 (50% probability) ultimate recovery estimates of 31.28 Million barrels of oil and 66.53 Billion cubic feet of gas at the Company’s two flagship properties in Colorado and Texas • Company fully funded to meet its June 30 2013 drilling commitments • Company controls 93.5% of 5000 acres in Texas and 85% of 11,500 acres in Colorado Austin Exploration (ASX:AKK) has received the independent consultant’s report from Gustavson Associates covering resource estimates of the Company’s flagship projects in Colorado and Texas. Gustavson’s analysis estimated reserves ranging from P90 probability figures of 22.3 million barrels of oil and 40.5 billion cubic feet of gas to P10 probability figures of 45.87 million barrels of oil and 114.9 billion cubic feet of gas. A summary of the Gustavson analysis is presented below and an executive summary is attached to this report:
Estimated Ultimate Oil Recovery MMBbl ( Million Barrels) Cum Production, MMBbl Oil Resources, MMBbl (Million Barrels) Solution Gas Resources, BSCF Billion cubic feet P90 P50 P10 P90 P50 P10 P90 P50 P10 Birch Prospect 5.36 9.53 17.51 0.19 5.17 9.34 17.32 21.41 42.01 82.99 Pathfinder Prospect 16.94 21.76 28.36 16.94 21.76 28.36 19.09 24.52 31.96 TOTAL 22.30 31.28 45.87 22.11 31.09 45.68 40.51 66.53 114.95 Listed on the Australian Securities Exchange (“AKK”) and the OTC-QX International in the USA (AUN-XY) ACN 114 198 471 3 ABOUT AUSTIN EXPLORATION: Austin Exploration is an Oil and Gas Company with assets in Australia and the United States. Austin has strategically shifted its core focus towards non-conventional shale exploration in the United States. The Company has now established a major presence in two of America’s most prolific oil and gas basins. Austin controls more than 11,000 acres in Colorado in the Niobrara Shale and over 5,000 acres in Texas in the Eagle Ford Shale and the Austin Chalk. Austin has producing oil and gas wells in Texas, Mississippi and Kentucky. Austin also has a highly prospective Oil and Gas Licence, PEL 105, in the Cooper Basin of South Australia. The company’s wholly owned US Subsidiary, Aus-Tex Exploration Inc, turned cash flow positive in January 2011. To face future opportunities, Austin has strengthened it board and management teams. Austin is listed on the Australian Securities Exchange (ASX code: AKK) and on the OTC-QX International in the United States (AUNXY). DISCLAIMER: This announcement contains or may contain “forward looking statements” within the meaning of Section 27A of the Securities Act of1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be “forward looking statements.” Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as “expects”, “will,” “anticipates,” “estimates,” “believes,” or statements indicating certain actions “may,” “could,” or “might” occur.Preliminary Resources Evaluation Report Birch and Pathfinder Prospects Burleson County, Texas, and Fremont and Custer Counties, Colorado Prepared on Behalf of Austin Exploration, Limited August 27, 2012 Submitted By:Preliminary Resources Evaluation Report Birch and Pathfinder Prospects Burleson County, Texas, and Fremont and Custer Counties, Colorado Prepared on Behalf of Austin Exploration, Limited August 27, 2012 Letha C. Lencioni Registered Petroleum Engineer State of Colorado #29506 Submitted By:1. EXECUTIVE SUMMARY Gustavson Associates LLC (the Consultant) has been retained by Austin Exploration Limited (the Client, Aus-Tex) to prepare a Report regarding the reserves and resources underlying the acreage position owned by Aus-Tex in the states of Texas, Colorado, Kentucky, and Missippi. This Preliminary Report presents the resource estimates for the two largest assets, the Birch Prospect in Burleson County, Texas; and the Pathfinder Prospect in Fremont and Custer Counties, Colorado. This Report is limited to a report on the reserves and potential undiscovered oil and gas resources underlying the acreage position. This Report does not attempt to place a value thereon. The Birch Prospect comprises 5,000 +/- gross and net acres, with the primary targets being horizontal wells in the Eagle Ford Shale and the Austin Chalk. The Austin Chalk has produced 192 MBO from four vertical wells, now inactive, on this property, and numerous horizontal wells in neighboring counties. The Eagle Ford produces from several wells in Burleson County. Our resources estimates were based on a probability distribution of expected ultimate recovery (EUR) based on analysis of the performance of these wells, and the likely number of locations to be drilled in the prospect area. The Pathfinder Prospect comprises 11,560 +/- gross and net acres, with the primary target being horizontal Niobrara wells. Historical production from the Pierre Shale in the Florence Field has occurred from this property, but is not considered a major target for further development. No horizontal Niobrara wells have been produced nearby. Resource estimates for this prospect were based on a probability distribution of expected ultimate recovery (EUR) based on analysis of the performance of horizontal Niobrara wells located elsewhere in Colorado and Wyoming, and the likely number of locations to be drilled in the prospect area. Resource estimates are summarized below. Cum Production, MMBbl 90 50 10 90 50 10 90 50 10 Birch Prospect 5.36 9.53 17.51 0.19 5.17 9.34 17.32 21.41 42.01 82.99 Pathfinder Prospect 16.94 21.76 28.36 0.00 16.94 21.76 28.36 19.09 24.52 31.96
AKK Price at posting:
2.1¢ Sentiment: None Disclosure: Not Held