Austin Exploration adding more oil production, drilling Australian well Friday, September 28, 2012 by Bevis Yeo
Austin Exploration (ASX: AKK) expects to add new U.S. oil production over the next two months and will participate in the drilling of an Australian well in the first quarter of 2013.
The company has successfully drilled the 4,100 foot (1,250 metre) horizontal leg of its Pathfinder C 11-12 1 well and is moving ahead with preparations to complete and fracture stimulate the well.
This multi-stage frac is expected to be completed by the end of October with oil flow results expected in time for Austin’s Annual General Meeting in November.
Hydrocarbon shows were encountered throughout the drilling of the horizontal leg within the Niobrara Formation and logging data, cutting analysis, and pressure tests will be used to design the frac treatment.
In Texas, Austin’s Birch-3 well continues to flow back drilling fluids to surface under natural pressure.
The company said that while expelling the 50,000 barrels of drilling fluids naturally takes longer, it is preferable to doing so using a pump jack.
Its exploration team continues to monitor the well around the clock in expectation that oil production is imminent.
Australia
Austin has received notification from PEL 105 operator Beach Energy (ASX: BPT) that preparations are underway to drill the Prire-1 well that targets 2 million barrels of recoverable oil in the first quarter of 2013.
PEL 105 has been affected by floods since 2009 and drilling on the block has not been possible until recently.
Under the existing Joint Operating Agreement, Beach will pay for the first A$1.75 million. Following this, the costs will be split equally through to completion of the well.
The 5000 acre block, located 60 kilometres north of Moomba in South Australia, has space for another five additional wells.
AKK Price at posting:
2.7¢ Sentiment: LT Buy Disclosure: Held
