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AusTex operates Oil and gas leases in Oklahoma through it wholly owned subsidiary International Energy Corporation (Oklahoma). Offices are located at 1801 East 71st Street, Tulsa. The Company's primary focus is to grow oil and gas production through the development of proven reserves at the Snake River Project in Kay County, Oklahoma.
The Snake River Project is located in Kay County, Northern Oklahoma and is the Company’s primary focus and is expanding both its acreage position and drilling commitments through the execution of its vertical well development strategy. The centre of the project lies approximately 5 miles south west of Ponca City and the general area hosts significant infrastructure including an oil refinery, gas gathering facilities, gas sales lines and a compression and liquids stripping plant owned by other companies. AusTex is the operator of the Snake River Project and continues to develop vertical wells with the primary target being the Mississippian interval which is approximately 4,300 feet below surface (or deeper according to structural relief). Oil and gas production at the project is expected to increase as additional wells are tied into production facilities with AusTex investing in infrastructure including a gas sales pipeline that promises to deliver gas and NGL’s to a higher paying sales point.
The wells continue to perform exceptionally well and are delivering sound economics with payback occurring between 12-15 months from entering production. Based on increased density to 20-acre spacings, there are approximately 200 well locations still to drill on the current acreage.