Austin Exploration seals USA Shale deal

JETT RINK: Melbourne-based oil and gas exploration play Austin Exploration has completed the acquisition of two North American Oil and Gas Shale assets.

Austin has acquired more than 16,000 acres within two highly-prouctive Oil and Gas Basins in North America.

Completion of the shale exploration acquisitions comes after an extensive Geological, Land Title and Environmental review undertaken by Austin’s management and engineering teams over the past 60 days.

Approximately 11,000 acres have been acquired in Freemont County, Colorado, covering the Niobrara Shale within the Denver Julesburg (D.J) Basin.

The additional 5,000 acres covers the Eagle Ford Shale in Burelson County, Texas.

Completion of the acquisitions has come at a good time for the company with it scheduled to commence a fully funded multi-well drill program next month.

The first Eagle Ford well has been set to spud on Monday 19  September, United States time.

Austin will first drill three vertical wells, after which engineers will examine and review the electronic logs and the core samples from the 3 wells.

Best results from these wells, in terms of oil production and formation characteristics, will be re-entered and a 5,000 foot horizontal “multi-stage frac” will be drilled into the Eagle Ford formation.

“This is a great achievement for our company and will provide a solid foundation for Austin to transition into a significant oil and gas producer,” Austin exploration chief executive officer Guy Goudy said in the company’s announcement to the Australian Securities Exchange.

“The large acreage positions are a first for Austin and will allow for continual and ongoing exploration with a view to building significant reserves and ultimately production.

“Importantly, the company maintains high-interest positions in both projects which affords Austin the ability to have complete control over the management of its projects.

“It validates Austin’s strategy of maintaining a strong US presence, which has enabled Austin to secure this significant acreage position, through the relationships of our chairman Dr Mark Hart, and will ensure Austin is well placed to progress the development of these projects in the near term.”