AKK Strikes 6 from 6 at Eagle ford
Austin Exploration (ASX:AKK) is continuing its 100% success rate in its Texas Eagle Ford shale project now that its sixth well there – Seaducer #1H – has struck oil and is holding an initial production rate of 960 BOE.
This comes as AKK accelerates the development of its prime US oil and gas project and enacts company wide austerity measures to ride out the recent drop in oil prices.
Six from six at Texas Eagle Ford
Seaducer #1H is the sixth straight well AKK has successfully spudded at its oil play in Burelson County, Texas. It was drilled to a total depth of 16,022 feet and is pumping out 960 BOE with 90% liquids content.
AKK’s Chief Executive Dr Mark Hart says the company’s six producing wells in the Eagle Ford shale have the lowest production costs for any non-conventional oil basin in the USA and remain economically viable despite the recent drop in oil prices.
“At $90 per barrel the company has been preparing to significantly ramp up operations in 2014/15,” he says.
“In response to the drop in the oil price the company has halted any major expenditures. We have stripped out over a million dollars in overheads including significant company wide salary reductions. Fortunately the company has no debt, and with the austerity measures the company has put in place, the company is positioning itself to survive this downturn in oil prices.”
Two wells spudded to push Pathfinder along
Meanwhile, AKK’s Niobrara Pathfinder oil and gas project in Colorado is being pushed ahead with two wells, C18#3 and C18#4, now spudded. Both wells are targeting oil production from the Pierre shale formation.
AKK’s Niobrara Pathfinder project is directly adjacent to the historic Florence oil field, which has produced over 15 million barrels of oil from the Pierre shale.
Both of AKK’s new wells have been drilled tangentially to the formation and do not require fraccing; AKK estimates costs at less than $1M per well. Work has been paused until mid-April 2015 to comply with Colorado state wildlife regulations.
AKK says it will continue the work as soon as possible and move into production quickly if oil is struck, supported by a new access road that it’s just constructed at the site.
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