Austin Exploration to get oil flowing in Mississippi
US-focused Austin Exploration (ASX:AKK) says the oil and sales should be flowing at its Board of Education project in Mississippi before the year is out.
AKK has a 50% working interest in the Board of Education-1 well, and told investors last month that it had hit oil in the well. However, it has now confirmed the well hit 28 feet (8.5m) of oil saturated sands.
It means that AKK has now hit oil in five out of five conventional oil wells drilled in the oil-producing Adams County in Mississippi.
AKK said it expects production to start from November, providing a cashflow boost to the junior oil producer.
It has also drilled an injection well on site to dispose of saltwater brought up during drilling, with the Environmental Protection Agency set to sign off on the well soon.
AKK managing director Guy Goudy told investors that he was hopeful of a repeat performance at its next project on the slate, the Pierre Project in Colorado.
“We look forward to a strong finish to the year. It appears our latest Mississippi well is going to provide a nice boost to our production and cash flows,” he said.
“I’m confident of replicating this success with our upcoming Pierre drilling program in Colorado which is scheduled to commence in November.”
About Austin Exploration (ASX:AKK)
Austin Exploration is a US-focused oil producer, with projects in five states.
It has recently switched up its strategy in a low-price oil environment to drill low-cost vertical wells targeting conventional targets in oil-producing regions.
However, it still has a major presence in the higher-stake unconventional basins in the US, holding 11,000 acres (4450 hectares) in the Niobrara Shale in Colorado and Eagle Ford and Austin Chalk in Texas.
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