TSX Venture: AUL
VANCOUVER, May 8 /CNW/ - Austin Developments Corp. (TSX Venture Exchange Symbol "AUL") ("Austin") has been informed by Montello Resources Ltd. ("Montello") as operator of the Morgan Highpoint Project that after resolving a number of common operational start-up issues an extended production test on the Morgan Highpoint No. 3 Well has now been conducted.
In less than 10 full days of production Montello has recovered in excess of 800 barrels of light sweet high gravity oil from its 6.25 inch well bore. After analyzing the logs, including the Weatherford Fracture Imaging Log that was run on the Morgan Highpoint No. 5 Well and geological data recently obtained from its 5 wells, along with the extended production test, Montello has now confirmed the presence of an extensive fracture network which explains why the daily production rate in the Morgan Highpoint No. 3 Well has sharply declined to approximately 15 barrels of oil per day which mirrors the decline rates recorded on other wells drilled to a similar depth in the southern portion of the Appalachians. Montello after conferring with a number of service companies specializing in unique completion techniques has obtained approval from its JV partners to proceed with a completion program that has been designed with the goal to exponentially increase daily production rates as well as significantly improve the ultimate recovery rates that are typically achieved from wells in the area. For competitive reasons Montello and its partners will not be disclosing how the wells will be completed. Logistics are being finalized to mobilize specialized equipment from Canada and the United States to perform the contemplated completion programs which are anticipated to commence within the next four to six weeks.
The JV partners are pleased to announce that plans are also underway to finalize the surface location from which the Morgan Highpoint No. 6 Well will be drilled. Montello and its partners now have approximately 1,500 acres of land tied up. Without acquiring any additional mineral leases, if the scheduled completion programs are as successful as contemplated Montello and its partners are positioned to conduct a multi-well drilling program consisting of over 20 shallow oil wells and 2 additional deep gas wells. Based on the knowledge and understanding that Montello now has of both the shallow oil play and the deep gas play recently identified in the John Bowen No. 2 Well, the JV partners are now aggressively pursuing acquiring additional mineral leases and drilling/re-completion opportunities in Morgan County, Tennessee.
On behalf of the Board of Directors
Austin Developments Corp.
Per:
"Patrick Power"
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Patrick Power
President and Director
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurances that future developments affecting Austin will be those anticipated by management.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.