The Armstrong Prospect, Natchez, Mississippi Oil Development Program
- Aus-Tex holds a 50% WI and a 37.5% NRI
- Target formation is Wilcox Sand
- Estimated recovery of 80,000 barrels of oil per well
- Three-well drilling program envisioned
- First well (Armstrong #1) is completed and was put on production in May 2010
- Daily production is currently at 62 barrels of oil
ABOUT THE ASSET
This project is located near the town of Natchez, Mississippi in the Southwest part of the state. Aus-Tex has its initial focus on the Ellislie Plantation #1 well, with the Company holding an option to drill two additional wells on the same geologic trend.
Drilling of the first well began on March 5th, 2010. The well went on pump the week of April 19th. First oil production testing began in May and Aus-Tex began receiving first income from sales in June 2010.
About the Well
The initial Ellislie Plantation #1 well is a re-drill operation of a previously producing well and it is currently on pump to production.
This well, and the two wells that Aus-Tex holds an option for, represent the 16th, 17th and 18th wells that the operator has drilled in the same Wilcox formation. Fourteen of the 15 previous wells all produced in excess of 100 barrels of oil per day.
All three wells each share the same essential characteristics as the previous 15. Each is a re-drill of the last producing formation; must be a structurally high well with a proven reservoir and the last measured oil cut and volume is economically viable today
The wells in this area typically produce for three to five years
