Square Mile, Partners Make Gas Condensate Discovery in Texas

Ausam Energy Corporation has made a gas condensate discovery on its Nolte Marsh prospect in Liberty County, Texas. The prospect was drilled to a depth of 13,330 feet by Square Mile Energy L.L.C. (37.5% and operator) under a Joint Operating Agreement with Ausam (40%), Petro Real (17.5%), and 100 Wall Energy Partners (5%).

The prospect tested the Yegua/Cook Mountain sands and encountered an estimated 35 feet of net pay. The well is expected to be completed and tied into nearby production facilities for processing and sales.

Mark Avery, president and CEO of Ausam, stated, "The Company is very pleased to announce the success at the Nolte Marsh prospect, which exposes the Company to reserve and production growth and is a good start to the currently proposed drilling program in Texas."