AusTex Oil’s Well Development Program on Track at Snake River

•Cletus #20-5 well has reached TD of 4,772 feet •Multiple intervals with hydrocarbons recorded •Drilling to commence on Blubaugh #20-2 well •10th vertical well to spud in coming days •New horizontal wells under active construction

Irvine, California (Sharewellnewswire.com) August 31, 2012 – United States focused oil & gas produer AusTex Oil Limited (ASX: AOK, OTCQX: ATXDY) is pleased to update shareholders on its well development program at the company’s 100% owned 5,500 acre Snake River Project in Kay County, Oklahoma.

In line with the company’s strategy of drilling two new wells each month until Devcember of this year, AusTex is pleased to confirm the Cletus #20-5 in the East Tonkawa Production Hub has reached total depth. Also, spudding of the Blubaugh #20-2, also in the East Tonkawa Production Hub, will occur in the next few days.

Cletus #20-5 well

Drilling on the Cletus #20-5 well successfully reached Total Depth of 4,772 feet. Sample and logs confirmed multiple intervals with hydrocarbons present including the Tonkawa Sand, Cleveland Sand, Layton Sand, Mississippi Lime, Woodford Shale and Wilcox Sand.

Casing has been set and the well will be completed for oil production from the Mississippi Lime interval. The well encountered multiple intervals of porosity within the 340 gross feet of Mississippi Lime intersected including 2 distinct “chert/chat” sections.

Blubaugh #20-2 well

The rig has moved onto the location of the #20-2, also located in the Production Hub 2 area. The well is expected to spud in the next few days and it be the 10th vertical well drilled on the Snake River Project. The #20-2 is targeting the Mississippi Lime interval with an expected TD of 4,800 feet.

Executive Chairman Richard Adrey said: “Our program of drilling two wells each month between now and December is on-track and progressing to plan. As we have previously stated, increasing production from current levels of 300 boepd is our key objective at this time, and our well development program ensures we can substantially grow current production from these levels.

“AusTex is also assessing additional horizontal well participation opportunities and negotiations with interested parties are ongoing. The interest in our projects and our acreage is very encouraging, and confirms the fact that our projects have significant un-tapped value.”

AusTex will update shareholders shortly on production rates from new wells that have recently come on stream as reported in the announcement to the Australian Securities Exchange on 22 August 2012.

AusTex Oil Limited

AusTex Oil Ltd (ASX: AOK, OTCQX: ATXDY) is an Exploration and Production company that is focused on the development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas. AOK holds interests in ~26,000 net acres of oil and gas leases, including acreage in the highly prospective Mississippi Lime play in Northern Oklahoma and Kansas. AusTex’s ADRs trade at a 50:1 ratio to its Ordinary shares.

For further information please contact:

Daniel Lanskey,                                                                        Richard Adrey
Managing Director                                                                    Executive Chairman
Australia +61 408 885018                                                      USA +1 918-743-7300

Contact Info:
+61 2 9238 2363
[email protected]
www.austexoil.com
AusTex Oil Limited

Source: http://www.sharewellnewswire.com/austex-oils-well-development-program-on-track-at-snake-river-2617.htm/#ixzz25D2mEi7Q