Pathfinder Prospect, Fremont County, Colorado (85% of 11,500...

Pathfinder Prospect, Fremont County, Colorado (85% of 11,500 acres)
Pathfinder C 11 – 12 No. 1 HZ Well:
Austin Exploration (ASX:AKK) advises that crude oil and gas continues to flow naturally to the surface at its
Niobrara project in Colorado.
The Company’s engineering team has been on-site 24 hours a day monitoring the well and the performance of
surface facilities. These facilities have been successfully completed and the system is working efficiently which
has allowed for the well to flow oil naturally to the surface since Monday .
During this 24-hour period on 13 March 2013 the well flowed a total of 403 BOEPD. This is made up of 211 BO
& 1,150,000 SCF of gas, resulting in a gas-oil ratio (GOR) of 5476 scf/stb.
As a result, Austin will now move to the next phase of production testing by putting the well on pump, which is
expected to achieve consistent and steady production. The Company believes that maximum oil (liquids)
volumes will be extracted with the well on pump, which has been designed to operate efficiently whilst at the
same time being able to produce gas up the casing side of the wellbore.
The unexpected volume of gas that the well is producing will add additional economic value that was not
initially accounted for, and will further add to the Company’s in-ground reserves and cash flows.
Austin is highly encouraged by the exploration success achieved on its first horizontal well at the Pathfinder
project, which is a credit to the Company’s engineering team whose ability to drill successful and commercial
wells in unexplored areas adds significant value to its assets.
The Company is working diligently to install a gas compression unit so the gas can be transported to sales. This
is a short term solution and Austin believes that in the longer term, maximum profitability of the Pathfinder
project will be achieved by laying gas lines and connecting in to the nearest major pipeline which is
approximately 5 miles away.