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Drilling update - Austin’s Eagle Ford shale project, USA
· More hydrocarbon ‘shows’ as drilling reaches primary Eagle
Ford Shale formation
The Board of Austin Exploration Limited (ASX: "AKK") - on behalf its wholly owned US subsidiary Aus-
Tex Exploration Inc- provides the following update on drilling of the Krueger #1 well, the first well on
the Company’s Eagle Ford Shale project at the Birch Prospect in Burleson County, Texas, USA.
Drilling of the well is currently entering the primary Eagle Ford Shale formation after another
successful week of drilling which included more hydrocarbon ‘shows’, this time from the Austin Chalk
formation.
The Austin Chalk, also a primary target, was encountered at depths of 8403 feet and 8829 feet for a
total thickness of 426 feet. Hydrocarbon ‘shows’ were observed in the mud logs while drilling through
this targeted formation.
“It is most encouraging that hydrocarbon shows have been identified in drilling through the first two of
our formations of interest,” Austin’s Chief Executive Officer, Mr Guy Goudy, said today.
“We look forward with great anticipation as drilling is now entering the Eagle Ford Shale formation
which we expect to be approximately 300 feet thick, followed by around 30 feet in the Buda formation
and 90 feet in the Georgetown formation,” Mr Goudy said.
“If progress continues at the current rate we aim to complete the drilling, logging and casing process
towards the end of next week,” he said.
Mr Goudy said drilling through the Austin Chalk formation was slower than expected with drilling
circulation issues due to the soft, highly fractured nature of the formation. Drilling ahead into the Eagle
Ford Shale was recommenced after successful remediation efforts to strengthen the integrity of the
Austin Chalk formation.
The Austin Chalk ‘shows’ followed the intersection of the Taylor Sand formation - the first of the
potential hydrocarbon bearing formations outlined by Austin its pre-drilling report. Encouraging gas
shows were identified in mud-logs from drilling of the Taylor Sands between 6594 feet and 6615 feet
and were consistent with productive Taylor gas sand wells in the vicinity of the Krueger #1 well.
The Krueger #1 well – being drilled by Coastal Rig #7 – is Austin’s first well to be drilled on the Eagle
Ford prospect in which Austin has a 93.5% interest.
Austin Exploration Limited ACN 114 198 471
Listed on the Australian Securities Exchange (“AKK”)
7985 W. 16
t h
Ave, Lakewood ? Denver , Colorado 80214
Level 1, 160 Queen St reet ? Melbourne, VIC 3000
GPO Box 2850 ? Melbourne, VIC 3001
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The Krueger #1 well will be completed and fracced as a vertical well. Initially, three vertical wells will
be drilled at which time the formation characteristics will be analysed by the Aus-Tex geological and
engineering teams.
The well demonstrating the strongest hydrocarbon potential will be the first well to be re-entered for a
multi-stage horizontal “hiway” frac.


About Austin’s Eagle Ford Shale Project
The Eagle Ford Shale trends across Texas from the Mexican border to East Texas, roughly 50 miles wide
and 400 miles long with an average thickness of 250 feet. It rests between the Austin Chalk and the
Buda Lime at a depth of approximately 8,000 to 10,000 feet in the project area. It is the source rock for
the Austin Chalk and the giant East Texas Giddings Field – 6 counties: Bastrop, Burleson, Fayette, Lee,
Brazos, and Washington.
Austin’s Eagle Ford Shale project is located in the oil/wet gas window of the play, which has proven to
be the most productive area of the play, with an interpreted thickness of ~300 feet. Austin acquired its
Eagle Ford Shale interests for an average of only ~$400 per acre, well below industry peers, following a
detailed due diligence including an independent technical report and analysis of 12 nearby wells, all
with production. The independent technical report prepared for Austin as part of its due diligence
suggested potential initial production rates of >800 bopd and NPV per well of up to $7 million, with
potential for 31 wells.
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