The Armstrong Prospect, Natchez, Mississippi Oil Development Program
To follow our progress please select a link below
April 7, 2010 Armstrong Ellislie Number 1 (Update #3) March 26, 2010 Armstrong Ellislie No1 update March 18, 2010 Armstrong Well Moving Toward Production March 10, 2010 Armstrong core sample tests confirm oil reservoir sands March 10, 2010 Sonic Log Confirms Two Pay Zones in Ellislie Plantation #1 Well March 8, 2010 Armstrong Drilling Report - Drilling is Ahead of Schedule March 5, 2010 Armstrong Daily Drilling Report - Day 1 March 3, 2010 Armstrong Project Rig on Site. Set to Spud
ABOUT THE ASSET
The Armstrong prospect area – acquired by Austin’s wholly owned US subsidiary, Aus-Tex Exploration Inc. – is located in the city of Natchez and the State of Mississippi.
The first well to be drilled on the prospect will be the Ellislie Plantation #1, which is on schedule for an early March spud date. The Company has negotiated an option to drill two additional wells on the same geologic trend should the first well result in commercial production.
These three wells represent the 16th, 17th and 18th wells to be drilled by the operator. Fourteen of the fifteen previous wells all produced oil in excess of 2,550 barrels per month, with initial production rates exceeding these flows. Like the prior wells, the next three wells will target the Wilcox formation.
The Wilcox Trend has been an active oil and gas exploration area since the early 1940's and has seen thousands of wells drilled and abandoned for a variety of reasons ranging from the economic to the mechanical. We feel that considering today's oil prices and recovery technology, there has been left behind "bypassed oil" prospects that offer the investor reduced risk with a good solid economic return. These prospects are actual re-drills of wells that have produced in the past and were plugged with remaining oil that should be economic to produce at today's prices.
The First Well
Location Section 24, t5n-r3w County/state Adams County, Mississippi Primary objective: Armstrong and Benbrook sands Trapping mechanism Local nosing with permeability Lease position 40acres 75.00% NRI in unit Proposed total depth 6,540 feet GPS Location
Location: 31.359416° N, 91.369156° W, ±251ft
Altitude: 148ft, ±371ft
Map Link: GoogleMap
Typical Wilcox Properties
- Average depth of wells 3,000'-7,000'
- Primarily focus is Oil
- No abnormal pressures
- Typical Reservoir Properties
- Porosity averages approximately 30%
- Permeability ranges from approximately 100md -1200md
- Recovery factors range from 500-1100 BO/Ac-Ft
- Reservoir thickness ranges from 3'-30'
- Oil gravity ranges from 26-42 degrees
- Extremely effective water drive with no secondary recovery
- Reservoir Reserves of 100,000 to 2,000,000 BBL
HELD INTEREST
Working Interest of 100%
- 50% to Aus-Tex
- 50% to Aldridge Operating Company
Net Revenue Interest of 75%
- 50% to Aus-Tex (37.5%)
- 50% to Aldridge Operating Company (37.5%)
- Remaining Revenue Interest 25% to seven individual interest holders
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