The Board of Austin Exploration Limited updated on the Company's Ellislie Plantation #1 well located in Adams County, Mississippi.
Target depth has now been reached, and Schlumberger sonic logs support the prior geological prognosis developed from the 1976 original data that oil is present in the previously producing Armstrong sand. The log data also supports a hydrocarbon presence in the deeper Benbrook sand.
Core samples are now being retrieved for a full analysis, with testing of the two core samples now underway.
Based on these positive results, Austin will immediately move forward with the setting of production casing and work towards completion of the well.
Daily Drilling Summary
Day 1 - March 4, 2010
Site preparation has been completed. The Shamrock Drilling Company Rig #1 left the yard early this morning. Rig was erected late in the day. Spud and Drilling to commence tonight.
Day 2 - March 5, 2010
Connection issues associated with drill mud recycling system delayed spud and drilling until mid day. Circulation system was tested and passed. Drilling of mouse hole and rat hole was then completed. Drilling operations then commenced through the original hole. Drilled to a depth of 480 feet. Drilling continued.
Day 3 - March 6, 2010
Drilling continued until the bottom plug was encountered at 1,800 feet. Plug was drilled through. Drilling continued.
Day 4 - March 7, 2010
As of 4:28PM - Currently drilling at 5,933 feet. There have been no unanticipated difficulties thus far and drilling continues through the original well bore. The Ellislie Plantation #1 re-entry reached target depth of 6,585 feet at 9:00 PM Central Standard time.
Day 5 - March 8, 2010
After reaching the targeted drilling depth, a "wiper trip" was made up the well bore and drilling fluid was circulated throughout the well bore to condition the hole and build up a protective "mud cake." After well conditioning, Schlumberger began the rig up to run the induction array/sonic electric log.
Openhole electric log operations began at 2:40PM central standard time on Monday March 8th, 2010. The log was run to determine the exact depth of targeted sands with potential for oil production. Original objectives were the primary Armstrong and the secondary Benbrook sands, which were encountered at 6,444 feet and 6,454 feet respectively. The logs also measured the permeability and porosity characteristics of the target formations.
The electric log results support the prior geological prognosis developed from the 1976 original data that oil is present.
Based upon the results of the wireline log the operator has recommended and Aus-Tex has agreed, to immediately begin setting five and half inch production casing.
Anticipated Next Steps
Sidewall cores are now being shot over the prospective intervals every half foot. We anticipate the sidewall core results to confirm the wireline log interpretation and previous sidewall core data.
Upon recovery, the dual pay zone core samples will be sent by courier to Omni Laboratories of New Orleans for analysis. The Company expects to receive the results within 24 hours.
After production casing is set, the current drilling rig platform and support equipment will be disassembled and removed from the location. A completion rig will then be delivered to the location.
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