(MENAFN - ProactiveInvestors - Australia) Austin Exploration (ASX:AKK) has found strong oil and gas flows at its Pathfinder project in Colorado, following its maiden horizontal well drilled into the Niobrara formation.
Due to gas flows in excess of the capacity of the flaring equipment and oil and water separation units, additional infrastructure had to be installed that can operate at much higher volume and pressures.
While it is not possible to quantify the amount of oil, the well had been flowing both oil and gas (wet gas) naturally to the surface for 12 hours at a rate of about 66,000 cubic feet per hour.
The strong oil and gas flows indicated that the well has excellent reservoir pressure and the frac job in December was a success.
The company completed installation of surface facilities including pumping equipment, flow lines, tank batteries oil and water separating equipment and gas flaring equipment following a 16 stage fraccing operation.
Austin is well cashed up following fund raising last year and is now in a position to progress towards the commercialisation of its assets in Colorado and Texas.
The company will form a definitive view of the long term production capability of the Pathfinder well only after monitoring both the oil and gas production for atleast 30 days.
Austin controls more than 11,000 acres in Colorado in the Niobrara Shale and over 5,000 acres in Texas in the Eagle Ford Shale and the Austin Chalk.
Austin has producing oil and gas wells in Texas, Mississippi and Kentucky and a highly prospective Oil and Gas Licence, PEL 105, in the Cooper Basin of South Australia.