Austin Nears Completion of Mississippi Oil Well

Austin Exploration provided the following progress report on Ellislie Plantation #1, the Company's first oil well at the Armstrong Project in Natchez, Mississippi.

The operator is currently working to simultaneously complete the oil well, the saltwater injection well and set the pumpjack while finishing the installation of oil delivery pipeline, storage tanks etc.

Key Objectives Achieved

Since the Company's March 26th market update, the operator has completed the following objectives:

  • Workover and completion procedure commenced on Monday March 29th on the saltwater injection well to be used for the disposal of all saltwater produced from the Ellislie Plantation #1 well
  • Three individual 400 barrel oil storage tanks were delivered to the tank battery site
  • The Lufkin 640 pumpjack with 168 inch stroke is currently scheduled for delivery at the end of this week. Installation and setup of this 2,000 plus barrel (oil & saltwater) per day capacity pump will commence upon arrival.
  • Work on the remaining infrastructure continues to progress on schedule.

The Company testing of the Ellislie Plantation #1 well on pump will be completed sometime next week with projected production commencing after completion of the saltwater injection well seven to ten days later.

Wilcox oil production in the state of Mississippi is associated with saltwater. A productive well can have an oil cut from 1-15% and a saltwater cut of 99% to 85%.

The operator is anticipating Ellislie Plantation #1 to have around a 7% oil cut. This combination of oil and saltwater requires moving a large amount of fluid daily, hence the large pump-jack.

This saltwater will be injected back into the ground via the water injection well and the oil will flow to storage tanks. Oil analyzed from percussion sidewall cores measured 47 degrees and is classified as the more favorable "light crude oil."