logo-loader

Austin Exploration Ltd shares fly on oil discovery in Colorado

Published: 09:00 26 May 2016 BST

au_usa_up_close_358_57466c703ba6e

Austin Exploration Ltd’s (ASX:AKK) shares have surged today after intersecting a significant 790 feet column of oil in the Pierre formation at the company’s flagship Pathfinder project in Colorado, U.S.A.

The oil was discovered in both drill cuttings and on the drill string which was saturated and dripping in crude oil.

Testing of the well is expected to take one month to analyse its production potential.

Bullishly, the recovered crude oil has a green colouration which is the same type of oil found in neighbouring oil fields, which have produced 15 million barrels of oil.

Austin has ordered production facilities, which include a pump-jack, tank batteries and flow lines. Testing of the well will begin shortly to analyse its production capabilities.

The Pathfinder project, spread over the DJ Basin which is one of North America’s most prolific oil and gas producing basins, is large enough to accommodate more than 350 wells.

Austin had been divesting non-core assets over the last few months, selling minority interests in Texas and Mississippi properties to raise A$2.78 million.

Following the sale, the company has completely eliminated debt, by paying down a USD$1.5 million debt facility with ANB Bank.

Austin is well funded to ramp up operations after closing a A$1.73 million underwritten renounceable entitlement offer earlier this month.

The new oil discovery is likely to be commercial is timely as Austin is aiming to achieve profitability by being a low cost oil producer in a depressed oil market.

Trading volume was a solid 325 million shares.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

24 minutes ago