AusTex Oil shares up as Mayo Moore #5 well completed for oil and gas production

Shares in Australian-listed oil and gas producer AusTex Oil (ASX:AOK) increased slightly after the company announced the Mayo Moore #5 well had been completed for oil and gas production.
In a statement, the company said the well had opened in the Red Fork Formation at 1482 feet, with 24 feet of net pay zone perforated and stimulated by hydraulic fracturing.
The announcement, which was made in an update on operations in Tulsa County in Oklahoma:- Mayo Moore #5 Well, saw shares in the company jump 5.4% to 19.5c.
During production testing the well produced at a rate of 60 barrels of oil per day with associated gas.
The Baggett #1-33 Well has been completed for oil production in the Wilcox Formation at 2200 feet, with the well produced at a rate of 28 BOPD during production testing.
Flow lines and electrical connections are expected to be finished within two weeks, weather permitting, and the well will be put into production.
Additional shallower zones from which oil and gas was displaced during drilling, including the Woodford Shale at 2135 feet and the Red Fork Formation at 1494 feet, are behind the pipe and may be opened for production at a later time. Baggett #2-33 Well The well has been perforated in the Red Fork Formation at 1485 feet and treated with an emulsified diesel fracture of 285 barrels at 16.3 barrels per minute with close-in pressure of 600 pounds per square inch. Production testing has commenced.
Flow line installation and electricals will run concurrent with the Baggett #1-33 Well work.
As previously reported, oil and gas production on the lease group has been slowed down until a gas treatment and reservoir maintenance plan is implemented.
Following the installation of the gas stripping plant, a reservoir maintenance plan will be implemented which will include water and gas injection into producing formations in order to maintain long term oil and gas production. Gas tests on the Mayo Moore #2 Well measured a flow rate of 730 thousand cubic feet per day (730 MCF/D).
Other wells on the lease are also producing associated gas, with flow rates still to be independently tested. Total gas sales during December were 8200 MCF, as gas sales are currently being maintained at 260 MCF/D from the lease group.
Average revenue per MCF received for November gas sales was $AUD5.75, as a result of the high liquid content.
Development drilling to continue Permits to drill an additional 5 wells have been obtained, including the Mayo Moore #7 Well which will be a 1100 foot well targeting the Big Lime formation as a 50 foot offset to the Mayo Moore #5 Well.
Drilling is scheduled to commence later this month, weather permitting.  http://www.proactiveinvestors.com/companies/news/3647/austex-oil-shares-up-as-mayo-moore-5-well-completed-for-oil-and-gas-production-3647.html