I did finally have a chance to speak with our technical and operations folks late yesterday and again today regarding the status of the work being done at Park City. They are all in Kentucky with RET at this very moment. I was very encouraged by some of the details and a bit discouraged by a few others. From what I’ve gathered it appears that the last few weeks of silence had more to do with our technical team ripping through RET’s process and planning systems and discovering that they have had a total focus on drilling and a total lack of focus on well completion. The technical team and our managing director are now at Park City getting the operator a bit more focused.
What I’m passing on today is nothing worthy of an announcement but at least it’s news.
· After all of the various operations and logistics issues caused by the Operator and the sloppy stimulation procedure performed at the Wilkerson 2A well, our lead engineer and geologists ordered a halt to all new drilling and a total shift of the operators resources toward production work.
· We now have 18 wells drilled and two more that have been started, giving us a total of 20. When I receive the log data and the lease assignments on the additional wells I’ll assembled a formal market announcement.
· RET will no longer be allowed to drill additional wells for Austin until our current gas wells are treated, flowing and connected. This includes the wells that require storage tanks and pump jacks for oil production.
· In some cases we have wells that are less than 100 feet from the pipeline but no workers from Atmos were ordered by RET to come in and connect them.
· The Wilkerson 2A remains a viable well because there are additional Fort Payne areas to be treated and the New Albany shale will also undergo a frac job. However, our team and some new production specialists that we have recently hired will now be present and part of the planning before the Wilkerson 2A or any of our other wells will be treated.
· Since several of our wells produced oil from a formation below the Fort Payne, it will be very critical for the treatment procedure to be done correctly.
· Discussions with the field crew also indicated that we may have our first gas sales sometime tomorrow. Cross your fingers!!!!!
I’ll pass along more details as they come in.
Regards,
Kenny Hill
Chief Information Officer
Austin Exploration Limited
Cell – 512-423-2547
AKK Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
