Austin Exploration Drills Well To TD, Scores Gas, Oil

Adelaide-based petroleum explorer, Austin Exploration Limited announced that two additional wells have been drilled to target depth and both flowed natural gas and a mix of crude oil to the surface while drilling. The wells represent two of the planned three wells scheduled for drilling on the Spillman Farm mineral lease. The operator plans to drill and complete the third well shortly. These latest discoveries are part of the continuous drilling campaign at the Company's flagship Park City gas project in Kentucky, USA. The new wells have been named the Aus-Tex PC9 and Aus-Tex PC10 respectively.

Austin's Managing Director, Mr. David Schuette, said "As has been the case with previous wells of this type the gas is coming from the Fort Payne and New Albany Shale formations and oil is coming from the Corniferous Formation."

This discovery brings the total number of wells completed to nine (9) with five (5) of these being completed since March. All of these wells have had good shows of natural gas and four of the nine total wells also had good shows of crude oil.

"During the next week we will begin acid stimulating some of the wells that are already completed. This will give us our first opportunity to deliver natural gas to the processing plant and will also demonstrate our first absolute open flow rates after an acid stimulation. With the plant now coming online we can also finally begin constructing the site pads for the four wells that had oil flows. The Pump jacks, oil storage tanks and the equipment to separate the oil from the natural gas will then be installed. The Oil will go to the storage tanks and natural gas to the pipeline. Mr. David Schuette, said "

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

Austin's Park City continuous drilling campaign envisages that up to 44 producing wells will be completed by the end of calendar 2008 with the opportunity to drill more than 200 wells in total on the field by the end of 2011.

Austin maintains an undivided 75% Working Interest and a 65.625% Net Revenue Interests in every well it drills at Park City. Beginning January 1, 2009 the company will hold a 56.25% net revenue interest and continue to hold an undivided 75% Working Interest.