Austin Exploration flows higher than expected rates of gas from Texas well
Friday, September 14, 2012 by Bevis Yeo
Austin Exploration (ASX: AKK) has flowed gas at a higher than expected rate of 800,000 cubic feet per day from its Birch-3 well in Burleson County, Texas.
Observations during drilling had led the company to estimate a high case gas flow rate of 500,000 cubic feet per day, an estimate that has been thoroughly surpassed.
If this rate is confirmed, Birch-3 is expected to add to Austin’s future projected cash flows.
It is now preparing to flow test the oil reservoir in the well with results to be released towards the end of next week.
Birch-3 had intersected what appeared to be a large oil reservoir at about 10,675 feet after large gas kick produced a 40-foot gas flare and returned 20 barrels of oil to the pits.
The nearest well is the Christico Tharp Unit-1 well, that was drilled in 1990 about 1 kilometres away. This well produced about 117,277 barrels of oil and 1.027 billion cubic feet of gas from the Austin Chalk.
Austin has a 93.5% interest in the 5,000 acre Birch prospect, which has estimated ultimate oil recovery of 9.53 million barrels of oil.
AKK Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
