• 13.5 Feet of oil shows discovered in M4 well in Adams County, Mississippi • Eagle Ford drilling operations with Halcón are progressing well in East Texas
Austin Exploration (“Austin” or “the Company”) (ASX:AKK) announced the successful drilling of its fourth Mississippi well, the M4 Well, to a target depth of 6,400 ft. Log and sidewall core data is currently being analysed in order to determine the best zone for initial production.
Crude Oil has been discovered in the Campbell and Parker Sand Formations which were the primary targets of this initial drilling program on the HiLo Prospect, as well as the Wilson Sand formation which now adds further production potential to the Bourke #5 well.
Core samples confirm a 6.5 ft oil column within the Campbell Formation and a 5.5 ft oil column within the Wilson Sand Formation. The core samples also confirm the presence of oil in the Benbrook and Baker Sand formations.
Structurally the M4 well is similar to the Channel Oil and Gas Bourke #2 well which was also located on the Bourke lease. The Bourke #2 well produced just over 50,000 barrels of oil prior to it being plugged and abandoned due to mechanical difficulties.
The M4 well is Austin’s second well on the HiLo Prospect in Adams County, Mississippi. Austin has a 50% working interest and a 36% net revenue interest in the project.
Austin’s General Manager of the Southern Business Unit, Aaron Goss, said: “the Company is highly encouraged with the initial oil shows that were witnessed during the drilling process, as well as the log and sidewall core results.”
The Company has moved to immediately organise the necessary production facilities for the M4 well. Currently the drilling rig has been demobilised and the casing has been set and cemented for production. The Company will further inform the market as these production activities progress
AKK Price at posting:
1.2¢ Sentiment: None Disclosure: Not Held
