AusTex Oil Limited (ASX:AOK) Expands Mississippi Lime Acreage in Kansas

06.01.2012  |  ABN Newswire

Sydney, Australia (ABN Newswire) - AusTex Oil Limited (ASX:AOK) (PINK:ATXDY) advises that the company has acquired over 8,000 acres of oil and gas leases that is prospective Mississippi Lime acreage with a 70% Working Interest and a 58.8% Net Revenue Interest in Kansas. The Company has agreements on additional leases that will be announced upon settlement.

Background

AusTex Oil and Castle Resources Inc., as operator, are working interest partners in oil and gas leases in Sheridan and Thomas Counties, Kansas. A 26,500 acre seismic shoot was conducted in 2009 on the Cooper Project, which currently has 2 wells producing from the Lansing Kansas City formation. Reinterpretation of the seismic shoot has highlighted the presence of both the Mississippi Lime and Arbuckle formations within the project area below the current producing Lansing Kansas City formation. The 3D seismic for the expanded project area is currently being contracted so that high-graded areas may be selected for development.

In recent months the companies have been expanding the Project Area to the west and north of the Cooper Project. This region has witnessed substantial increases in leasing and exploration activity over the last 3 months.

In December 2011, Sandridge Energy (NYSE:SD) reported an expanded area of interest in the Mississippi Lime play to include north west Kansas and announced that Sandridge had entered into a $1 billion joint venture with Spanish company Repsol to undertake development of leases in the play. With the SandRidge/Repsol announcements of the extension of the play, AusTex feels an obligation to announce its ongoing activities in this expanded area.

About AusTex Oil Limited:

AusTex Oil Limited (ASX:AOK) is an Australia-based company. The Company is engaged in the development of oil and gas leases in the United States. It produces oil and gas from leases in Oklahoma and Kansas. It is also engaged in the exploration, development and production of hydrocarbons in the United States. Its wholly owned subsidiaries include International Energy Corporation (Oklahoma), International Energy Corporation (Kansas) and Well Enhancement Services LLC. During the year fiscal year ended March 31, 2009 (fiscal 2009), the Company was engaged in the drilling of three wells on the Lancaster Lease group, Tulsa County; two wells on the Sweet Unit, Pawnee County, and one well on the BlueHawk Project in Osage County.

Source:

AusTex Oil Limited

Contact:

Dan Lanskey
Managing Director
AusTex Oil Limited
Mob: +61-408-885-018
http://www.austexoil.com