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Equates to $0.29/Ordinary share, $14.71/ADR in Proved Reserves (1 ADR = 50 Ordinary shares)
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Independent Reserves Estimate compiled by Integrated Petroleum Technologies Inc. under Canadian National Instrument 51-101
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Proved and Probable Net Reserves (2P) estimated with a PV-10 of $158.4m
- Multiple new wells expected to come on stream in coming weeks
IRVINE, Calif., July 24, 2012 (GLOBE NEWSWIRE) -- United States focused oil & gas producer and explorer AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is pleased to release its Independent Reserves Estimates (Reserve Report) for the company's working interest in its oil and gas leases in Oklahoma and Kansas. The effective date of the report is June 15, 2012.
The Reserve Report was compiled by Denver based Integrated Petroleum Technologies Inc. (IPT), in accordance with the standards contained in the Canadian Oil and Gas Evaluation handbook and with the Canadian National Instrument 51-101. A summary of the oil and gas reserves by category is as follows:
| Reserve Category |
Oil Reserves Net (Mbbl) |
Gas Reserves Net (MMscf) |
Undiscounted Cash Flow (M$) |
10% NPV Cash Flow (M$)* |
|
| Proved producing | 252 | 657 | 16,150 | 10,926 | |
| Proved non-producing | 113 | 113 | 9,119 | 6,549 | |
| Proved undeveloped | 2,736 | 3,776 | 156,062 | 79,241 | |
| TOTAL PROVED (1P) | 3,101 | 4,546 | 181,331 | 96,716 | |
| Probable undeveloped | 1,803 | 1,736 | 103,801 | 61,751 | |
| TOTAL PROVED + PROBABLE (2P) | 4,904 | 6,282 | 285,132 | 158,467 | |
| Possible undeveloped | 6,386 | 6,254 | 375,995 | 230,365 | |
| TOTAL PROVED + PROBABLE + POSSIBLE (3P) | 11,290 | 12,536 | 661,127 | 388,832 | |
Executive Chairman Richard Adrey commented: "This Independent Reserve Report confirms the substantial unrealised value of AusTex's assets in Northern Oklahoma and Kansas. It also highlights the potential uplift in value we can achieve by delivering more wells into production. With a number of new vertical wells expected to come on stream in the coming weeks at our Snake River Project, and with an ongoing well development program occurring through to December, we expect a significant increase in reserves and oil production from this point onwards.
With major oil and gas companies such as Range Resources Corporation and Apache Corporation recognising the value of their nearby acreage in the Mississippi Lime Play, this further validates that we are in the right locations.
Our priority and investment focus in the immediate term is to continue to increase production from our well development program at Snake River, and augment this with increased exploration and production drilling activities in Kansas.
With production currently averaging 300 boe/day we are confident of an uplift in monthly production as we bring new wells on stream."
The Reserve Report has been prepared to assist the company for its proposed dual listing on the Toronto Stock Exchange. AusTex will update shareholders on its exploration and development activities in the coming weeks.
AusTex Oil Limited
AusTex Oil Ltd (ASX:AOK) is an Exploration and Production company that is focused on the development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas. AOK holds interests in ~26,000 net acres of oil and gas leases, including acreage in the highly prospective Mississippi Lime play in Northern Oklahoma and Kansas.
Competent Person's Statement
Reserves have been certified by Richard A. Burns PE, a Reservoir Engineer employed by Integrated Petroleum Technologies Inc., Denver, Colorado, and is a qualified person as defined under the ASX Listing Rule 5.11. Mr Burns holds a Bachelor of Science in Petroleum Engineering and has over forty years' experience in engineering studies, evaluation of oil and gas properties, drilling, completion, production and process engineering of oil and gas operation and evaluation of properties in Canada and U.S.A. and is a qualified evaluator and auditor as defined in National Instrument 51-101. Reserves have been developed within the guidelines of the Canadian Oil and Gas Evaluation handbook and in accordance with Canadian National Instrument 51-101. Mr Burns has consented to the use of the reserve figures in this announcement. Mr. Burns is a published member of the Society of Professional Engineers.
*NPV (10) figures are net present value of future net revenue, before income tax and discount at 10%. The estimated future net revenue values utilised in the disclosed net present values do not necessarily represent the fair market value of AOK's reserves. Key assumptions- a constant oil price of $100 per barrel and gas price of $2.75 per mcf.