(MENAFN - ProactiveInvestors - Australia) AusTex Oil's (ASX: AOK) ongoing vertical drilling program at the Snake River project in Oklahoma continues to bear fruit with production in October averaging 390 barrels of oil equivalent per day (boe/d), up 18% from September.
Peak production rates of more than 650boe/d were also achieved in the second half of the month.
This puts the company another step closer towards its objective of achieving monthly production of more than 1,000boe/d as well as its near term goal of 700boe/d.
New vertical production wells, of which AusTex is drilling two every month, have been producing at initial rates of more than 100boe/d.
The first well at Production Hub 2 has been in production for 75 days and averaged output at about 85boe/day, returning over 50% of its investment.
AusTex is also very encouraged by the progress of its horizontal well participation program with Range Resources (ASX: RRS).
Drilling of the second horizontal well, Hod-1, is underway and updates are expected in the near future.
AusTex has a 8.4% working interest in the Hod-1 and a 6.7% net revenue interest.
The first well, Balder-1 is producing oil and gas at a rate of 480 barrels of oil equivalent per day.