Austin Exploration Limited (AKK) is pleased to advise that its first Eagle Ford well, Krueger #1, has exceeded pre-drill expectations, producing 95 BOE from a 24 hour initial production test.
The vertical well was tested only from the Eagle Ford horizon, following a hydraulic frac (slick water, proppant) treatment, and flowed 75 barrels of oil and 150 million cubic feet of gas over the 24 hour production test period through a 19/64” choke at a pressure of 400 psi. Commenting on the successful testing of the well, CEO Guy Goudy stated: “The high flow rate from Austin’s first Eagle Ford is a strong demonstration of the value of the Company’s 5,000 acre Eagle Ford project. Furthermore these results validate Austin’s decision to maintain a high working interest (93.5%) in this exciting first drill program. The success of this first Eagle Ford well also highlights the exceptional capabilities of Austin’s US-based technical team”.
Mr Aaron J Goss, Austin’s South Business Unit Manager said: “We are very excited about the Eagle Ford formation results as it exceeded our high case expectation of 60BOPD from the vertical completion. We are now working on the Taylor Formation as we believe these two formations will yield the greatest returns of the 7 hydrocarbon bearing zones. The additional 5 zones will be entered in the future with a view to provide additional shareholder value”.
Over the next month, the Krueger #1 well will test the Taylor Sands, which during drilling encountered gas shows of up to 955 max gas units. It will then be placed on mechanical pump for long term flow testing and production. Two further vertical wells will be drilled by Austin at its Eagle Ford project over the coming months, with the best of these first three wells to be re-entered for a multi-stage horizontal “HiWay” frac. Evidence from other horizontal wells in the Eagle Ford suggests potential for a significant uplift in production from a horizontal multistage frac. Austin believes that a 10 stage frac has the potential to provide a 10-fold uplift in production rates.