re: Ann: Appointment of Managing Director to ... Eagle Ford Well...

re: Ann: Appointment of Managing Director to ... Eagle Ford Well Flows 25,890 BOE in First 30 Days
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Oil production rates continue to exceed expectations
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Results confirm Austin’s acreage is in the “sweet spot” of the Eagle Ford oil window
Austin Exploration (ASX:AKK) today announced the 30 day
initial production rate for its first well with Halcón
Resources Corporation in the Eagle Ford Shale Formation. Th
e Stifflemire 1H well produced an average of 863
barrels of oil equivalent per day (Boe/d) for a total of
25,890 barrels of oil equivalent (BOE) in its first 30 days of production (86% oil/14% gas).
This is an excellent result for the Company and further vali
dates the belief that its property is located in the
sweet spot of the Eagle Ford Shale oil window in East Texas. Th
is result has proven the presence of a
significant hydrocarbon system within this property and
allows the Company to pursue debt financing for the
ongoing development of this project.
As was announced to the ASX on the 23
rd
April, the success of this first well has encouraged Halcón to expediteits drilling program in this area and as such, two additional Eagle Ford Shale wells are currently being drilled on this property. Drilling on these two wells is progressing according to plan.
Austin’s CEO and MD, Dr. Mark Hart, said, “The Company is excited by the performance of this first well. The
success of this well validates all of Austin’s efforts to acquire the leases in the Birch Prospect during 2011.
Working with Halcón is a great pleasure and we look forward
to much success in the future.”
Austin’s COO, Guy Goudy praised the Austin team, in particular Ms Ola Akrad VP Engineering and Technology
and Mr Aaron Goss, VP for the Texas Business unit, and for their foresight to acquire this property in 2011 and
drill 3 successful exploration wells over the last 3 years.
“Our team used the most advanced engineering and geological techniques available for our due diligence and
selection of this property. We look forward to similar success at our Pathfinder property where our Niobrara
logs look as good if not better than the prolific Wattenberg field to our North”, Mr Goudy said.
The Stifflemire 1H well was the first well of a three well farm-out program with Halcón Resources Corporation,
whereby Halcón will carry Austin for the cost of three horizontal wells to earn a 70% interest in the Birch
Project.