Austin Exploration turns cash flow positive

THE ROADHOUSE BOWSER: Austin Exploration (ASX: AKK) has announced the company is now cash flow positive on a monthly basis.

This company said the achievement marks the success of Austin’s development strategy of simultaneously advancing multiple projects.

Oil production and monthly cash flow has increased as the Red Bud well in Texas was put into production.

In Texas the company’s Curington well is now in flow backtesting and is expected to begin generating monthly cash flow shortly while the Seaducer well is also currently being drilled.

Austin has met all required cash calls for these three wells and as a result, will be receiving the maximum possible cash flow as each well goes into production.

Whilst the production performance from the company’s assets in Texas is encouraging, it highlighted other factors contributing to the positive cash flow.

Production from the Kentucky wells is at its highest level ever. Oil production has increased in Colorado and the sale of heavy gases in Colorado is now occurring and strong production continues from Austin’s Mississippi wells.

“This accomplishment is a reflection of the focus, dedication, and capabilities of the entire Austin team – from the executive management team through all operations,” Austin Exploration CEO and managing director Dr. Mark Hart said in the company’s announcement to the Australian Securities Exchange.

“Austin is now very well placed to significantly ramp up production for its diverse portfolio of oil and gas assets in Texas, Colorado, Mississippi, and Kentucky.

“We have significant untapped potential in our portfolio.

“By covering all operating and administrative expenses on a monthly basis, excess cash flow will now be used to drill further wells and further increase production and cash flow.”