Success at Austin’s Texas shale oil field accelerates spudding plans

Published at Apr 23, 2014, in Energy

Two more oil wells are being spudded by Austin Exploration’s (ASX: AKK) $2.9B farm-out partner at its East Texas shale project after the first well it drilled started flowing at 1,066bpd almost immediately.

Fast results at Eagle Ford

AKK is developing the Texas Birch Eagle Ford project in the middle of a proven hydrocarbon basin. To bring its play into production, AKK signed a farm-out agreement with the $2.9B market cap explorer Halcon Resources to drill three 10,000ft wells at a free carried cost of up to $10M per well.

Halcon says it believes AKK’s Birch property is the ‘sweet spot’ of the Eagle Ford play.

Halcon spudded its first horizontal well at the Stifflemire 1H prospect in March and it quickly started flowing at a rate of 1,066bpd. This fast flow has encouraged Halcon to accelerate its work programme and it’s now simultaneously spudding wells at prospects called Kaiser 2H and Nemo 1H at Eagle Ford.

Dr Mark Hart, Chief Executive and Managing Director of AKK, says the flow rate achieved at Stifflemire 1H is very encouraging for the next two wells being drilled by Halcon. “The well continues to outperform our expectations,” he says. “The company looks forward to reporting the 30 day flow rate shortly. We have lots of irons in the fire and right now and everything is starting to come together quite nicely.”

Funds for development and re-categorisation on the horizon

AKK is now planning to use the Stifflemire 1H results to pursue the option of acquiring debt from financiers to further develop its Eagle Ford play and its oil and gas project in Colorado, called Niobrara Pathfinder.

The two properties have more than 300 possible drill sites between them and AKK says it expects to announce more details on its funding drive soon.

With oil now flowing from one well at Eagle Ford and two more being sunk, AKK says it’s re-engaged a Denver-based independent oil and gas appraisal firm to help re-categorise its oil and gas reserves.

AKK says it’s aiming to have its holdings appraised as proven and bankable. This process will also be influenced by upcoming drill results from the two wells being spudded at Eagle Ford.

View Our Investment Portfolios



S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!