AusTex Oil (ASX: AOK) has advised that development drilling on the Lancaster Lease Group, Tulsa County, Oklahoma, is set to continue following the recent success of four new wells during September.
Two new wells are scheduled to be drilled during November, including the Mayo Moore #4 and Bagget #1-33 wells which are step out wells to the Mayo Moore #1, #2 and #3 wells on the east side of the lease group.
The drilling contractor is scheduled to commence operations on Monday the 9th November 2009.
Drilling time per well is expected to be 3 to 5 days and will target all known formations down to the Arbuckle Limestone with an expected Total Depth of 2,450 feet.
Cost of each well is estimated at $US150,000 if completed for oil and gas production.
Up to an additional 24 infill drilling locations have now been identified for development on the acreage.
Current production on the lease is from the Arbuckle, Hominy, Red Fork and Tanaha formations.
Managing director of AOK, Mr. Daniel Lanskey said, “following last month’s successes in Oklahoma, we have contracted the same drilling operator to drill the next two step out wells."
"Our plan also includes an additional two wells in December. Our team in Tulsa is in the final stages of completing the Mayo Moore #3 and Lancaster #5," he said.
"Revenues from the wells drilled last quarter will add significantly to our December Quarter cash flows.”
AOK holds a 100% working interest and 81.25% net revenue interest in this project.