Sydney, Australia, Jan 31, 2013 - (ABN Newswire) - United States mid-continent focused oil & gas producer AusTex Oil Limited (ASX:AOK.AX - News) (OTCQX:ATXDF - News) is pleased report record revenue of $US2.3 million for the quarter ended 31 December 2012. This represents a 70% increase on the revenue over the prior a quarter, and a 256% increase on revenue recorded for the FY2011 December quarter - $641,000.
The solid revenue performance was driven by continuing growth in monthly oil & gas production from the company's 100%-owned flagship Snake River Project in Northern Oklahoma, and from revenue derived from AusTex's participations in the two wells with Range Resources (NYSE:RRC - News), also in Oklahoma.
AusTex now has 11 producing wells (nine vertical wells and participation in two horizontal wells) in Oklahoma and six producing vertical wells in Kansas. The number of producing wells is expected to grow in the months ahead as the company rolls out its development program and ramps up its well participation program with Range Resources and other potential partners.
AusTex Managing Director Daniel Lanskey commented: "Our successful vertical well development program is now starting to generate pleasing revenue flows. It is encouraging to note that average monthly cash generation now exceeds fixed monhtly operating costs, while managing costs remains a key focus."
"We are confident that revenue will continue to grow each quarter given our aggressive vertical well development program at Snake River, our horizontal well participation program with Range Resources, and the planned ramp-up in drilling activities in Kansas. As such, AusTex has multiple avenues to grow its revenue."
"We have a very active well development program underway and we committed to our program of drilling two or more vertical wells each month. Participation opportunities and developing our Kansas assets offers further upside and will unlock additional value for shareholders."
About AusTex Oil Limited:
AusTex Oil Limited (ASX:AOK.AX - News) (OTCQX:ATXDF - News) is an Australia-based company. The Company is engaged in the development of oil and gas leases in the United States. It produces oil and gas from leases in Oklahoma and Kansas. It is also engaged in the exploration, development and production of hydrocarbons in the United States. Its wholly owned subsidiaries include International Energy Corporation (Oklahoma), International Energy Corporation (Kansas) and Well Enhancement Services LLC. During the year fiscal year ended March 31, 2009 (fiscal 2009), the Company was engaged in the drilling of three wells on the Lancaster Lease group, Tulsa County; two wells on the Sweet Unit, Pawnee County, and one well on the BlueHawk Project in Osage County.
AusTex Oil Limited T: +61-2-9238-2363 F: +61-2-8088-7280 WWW: www.austexoil.com
AusTex Oil Limited
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