Ann: Monthly Production and Operations Update , page-4

Good announcement. Highlights for me were the following:

1) "Vertical well results consistent throughout area"
- this is key as it means that one of the main problems affecting other players in the Mississippian who have adopted horizontal vs vertical drilling techniques ie. inconsistent production results, does not apply to AOK.

2) "The Company acquired an additional 440 acres in the Snake River Project during the month. This was on top of 700 acres as announced in the January update released in February. AusTex now holds 6,640 acres at its Snake River Project and THE COMPANY INTENDS TO ACQUIRE ADDITIONAL HOLDINGS THIS YEAR."
- that's a 22.8% increase which indicates to me that management are pleased with the results and progress they have seen to date. Also like the fact that they haven't over extended themselves by acquiring too much land too quickly. The usual slow and steady approach...

3) "AusTex’s strategy is to add more acreage than the annual usage through drilling spaced on 80 acres per well, with the plan to increase density by down-spacing to AS CLOSE AS 20 ACRE SPACING."
- All company presentations to date have stated 200+ potential vertical well drill locations. If AOK is successful in increasing density to 20 acre spacings, that would mean 300+ potential drill locations, a 50% increase on original estimates.

All IMO