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akk media reports

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    Austin Exploration Announces Gas And Oil Discovery in New Onshore U.S. Gas Field
    Friday, February 22, 2008

    Austin Exploration Limited advises that the Malcolm and Melvin Doyle 2A well within the Park City field in the US state of Kentucky is naturally flowing heavy crude oil and natural gas to the surface. The well reached the 366.36 m target depth on February 18th and the E-Log was completed February 21st. The well is the first to be drilled and completed by the Company since it acquired the project from DMS Partners earlier this month.

    The well initially produced natural gas for approximately seven hours at a pressure of 300PSI then began naturally flowing oil to the surface. After a continuous flow of oil and gas for several hours, the Company determined that crude oil pumping equipment would be required. After the pump and storage tanks are installed the well will be tested to determine the optimum initial production rate. "The Malcolm and Melvin Doyle 2A natural flow has confirmed the commercial viability of this well as an oil and gas producer," Austin’s Managing Director, Mr. David Schuette, said.

    “According to the analysis of the electric log, the gas is flowing from two key target zones present in the Park City project area; the New Albany Shale and the Fort Payne Limestone formation and the heavy crude oil is apparently coming from a lower zone, a Devonian aged carbonate named the Corniferous Formation.” Austin’s Managing Director, Mr. David Schuette, said. “The Malcolm and Melvin Doyle 2A well has a pressure that is higher than our previous forecast for a typical well in this field. The natural flow of oil to the surface is highly encouraging and one heck of a start for this project.” The company plans to install separator equipment at the pump station; move the natural gas to the nearby pipeline and the crude oil to the nearby Somerset Refinery.

    The electric log shows a 3.66 m Corniferous zone between 347.5 m -351.12 m, a 22.86 m New Albany Shale zone between 313.94 m -336.81 m and a 3.353 m Fort Payne Formation zone between 285.29 m -288.64 m. All three zones are expected to contribute gas or oil to the total production stream.

    The log on the Malcolm and Melvin Doyle 2A well was performed by Norris Well Services of Kentucky and completed by the operator, Resource Energy Technologies, LLC, (RET) of Bardstown, Kentucky. Austin’s Park City drill schedule 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 is earning an undivided 75% Working Interest and 65.625% Net Revenue Interest for every well drilled in Park City.
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