Austin Exploration Discovers More Gas At Park City Project

Adelaide-based petroleum explorer, Austin Exploration Limited has discovered further gas in yet another successful well -- part of its continuous drilling campaign at the Company's flagship Park City gas project in Kentucky, USA. The Aus-Tex PC8 (Arthur Wilkerson 3A) was drilled to a target depth of 383.4 metres (1,258 ft) with logs confirming 24.08 metres (79ft) of pay from three zones within the wellbore.

Austin's Managing Director, Mr. David Schuette, said "With the field's processing plant coming online sometime in the next 30 days, Aus-Tex PC8 will join the planned 15 maiden production wells that we hope to have ready at that time. The natural pressure measured at the wellhead of this latest appraisal is better than any of the previous wells we have drilled at Park City."

As is common in this section of the field, three different producing formations were penetrated; the Fort Payne Reservoir, the New Albany Shale and the Corniferous. Aus-Tex PC8 is delivering gas under natural pressure. It will undergo an acid stimulation treatment designed to increase the natural open gas flow of the well by 300 to 900 percent. To prevent damage to the well's geologic formations, the stimulation will take place just prior to connection of the well to the delivery pipeline.

The two previously announced wells with oil shows will also begin the process of pump jack and storage tank installation at this time.

Two additional wells have commenced drilling and are expected to be completed shortly.

Several other well locations have been permitted by the State and have been placed on the drilling schedule.