AusTex Oil Limited

AusTex Oil Ltd is a Public Company listed on the Australian Securities Exchange (ASX:AOK) and the OTCQX (ATXDY).AusTex is focused on exploration and development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas and is currenlty developing producing leases in both states with interests in 10,500 net acres of oil and gas leases in the Mississippi Lime Play.  The Company has net production of circa 680 boe/day with Independent 1P reserves certified at 6.689 Million BOE with NPV10 of US32.240 million as at 31 December 2016.  US operations are based in Tulsa, Oklahoma, with an office at 1801 East 71st Street. International Energy Corporation (Oklahoma) is a wholly owned subsidiary and a licensed oil and gas operator in Oklahoma and Kansas.  AusTex holds approximately 9,900 acres (100% WI 81/% NRI) of the Snake River Project in Kay County, Oklahoma in the Mississippi Lime adjacent to leases operated by Range Resources Corporation (NYSE RRC). The company continues to lease acreage in Oklahoma and plans to increase oil production in the short term through its drilling activities.  Development drilling is underway on the project with additional wells being drilled with AusTex as the Operator.  AusTex remains focused on this project to drive production growth.  At 30 acre spacing on vertical wells there are over 200 locations to be drilled on this project.

Oklahoma

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 Companys primary focus is to grow oil and gas production through the development of proven reserves at the Snake River Project in Kay County, Oklahoma.

Snake River Project – 9,900 acres Northern Oklahoma AOK 100% Working Interest (WI) 81.25% Net Revenue Interest (NRI)  The Snake River Project is located in Kay County, Northern Oklahoma and is the Companys 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 NGLs 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.