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AusTex Oil to up the ante, more drill targets in Oklahoma

US-focussed oil and gas producer AusTex Oil (ASX: AOK) has successfully deepened the J&O #1 well in Oklahoma to 3230 feet as a part of the ongoing evaluation of leases held by AOK.

The J&O #1 well, part of the Sweet Lease in Pawnee County was originally drilled in 1948 to a depth of 2930 feet and oil was produced from the Upper Red Fork formation.

Total depth will be be reached over the weekend.

AOK holds a 100% working interest and 82.5% net revenue interest in this project and is the operator.

Speaking from Tulsa, executive director of AOK Richard Adrey said, “The successful deepening of the J&O #1 well further confirms the opportunity we have."

"Our technical team has identified over 20 development locations on the Sweet Lease in addition to the current development on the Lancaster Lease Group. We are now able to plan the development of our leases at a faster pace with the funds to be raised from the recently announced Rights Issue”.

During drilling operations, oil and gas was displaced to the surface at the J&O #1 well. Logs indicate the well intersected the Lower Redfork formation between 3050 feet and 3076 feet and the Bartlesville formation between 3136 feet and 3204 feet. 

The Lower Redfork Formation contains 13 feet of net pay, with an additional 40 feet of net pay present in the Bartlesville Formation, for 53 feet of net pay, over the two zones.

The well is to be completed in the Bartlesville formation for oil production. The Sweet #4A and Sweet #5A are currently producing oil from the Bartlesville Formation on this lease.

Lancaster Lease Group – Tulsa County

At the Mayo Moore #7 oil and gas well, the well has now been completed for production in the Big Lime and Oswego Lime formations. Current production is 10 barrels of oil per day and 50 thousand cubic feet of gas per day.

This well is a shallow well with a Total Depth of 1,135 feet, and was drilled as a 50 foot offset to the Mayo Moore #5 to test the shallower limestone formations.

With a total investment of $108,000 for the completed well, payback period for AOk is expected to be achieved within 6 months.

AOK holds a 100% Working Interest and 81.25% Net Revenue Interest in this project and is the Operator.

Disclosure: The author holds no positions in the company