The initial drilling program of Australis Oil & Gas Limited (ASX: ATS) commenced at the end of Q3 2018 at Mississippi.
As per the status of the first six wells of the drilling program, the lateral length of 6,900 feet was drilled at the well Stewart 30H-1. It has finished 20 fracture stimulation stages with IP30 of 1,177 barrels per day (oil flow rate) which was well above the margin for TMS Type Curve. The well is maintaining a similar margin relative to the TMS Type Curve, and now it has been on production for around three months. As per the release, after the ninety-two days of production, the well produced 86,500 barrels, which is above the TMS Type Curve by 35% as on March 31, 2019.
The work was completed at the well Bergold 29H-2 with five effective fracture stimulation stages, and with the help of the production casing, it continues to produce oil at modest rates. Artificial lift and tubing are expected to increase oil flow rates following their installation during the month of April. As earlier mentioned by the company, it did not consider the productivity of this particular well as a clear representation of the TMS play.
The lateral length spud at well Taylor 27H-1 has cased to a depth of 19,138 feet along with the lateral of 6,798 feet, which has been finished with the planned twenty fracture stimulation stages with flowback commencement on April 2, 2019.
The well Williams 26H-2 was drilled and cased to a depth of 15,628 feet, and the lateral of 2,878 feet has been completed with the revised plan of nine fracture stimulation stages with flowback commencement on April 2, 2019.
On the location, the main rig at well Quin 41-30 3H has been spudded and cased to the intermediate section to 11,920 feet. It has recently commenced spudding at the horizontal section within the reservoir section, with a current depth of 13,578 feet. For the first time, it is utilizing a high-performance water-based mud system in this section.
The vertical surface hole in well Saxby 03-10 2H has been spudded and cased to a depth of 3,210 feet, and it now awaits the rig to be released from the Quin well.
The increase in the land position of 115,000 net acres in the Australis Oil & Gas drilling inventory, adds another 20-net future well locations to its stock which is an additional 9 million barrels oil 2C contingent resource. Same methodology and assumptions were used for the assessment as per the Ryder Scott for the 2018 YE report.
The company expects to provide an update to the market on well flowback performance for the Williams 26H-2 and Taylor 27H1 wells towards the end of the month of April. As per the company statement, the initial drilling program remains on schedule and in the company's budget range.
At market close (on April 5, 2019) the stock of Australis Oil & Gas was trading at $0.24, up 2.041%, with a market capitalisation of $240.11 million. Today, it made dayâs high at $0.26 and dayâs low at $0.24, with a daily volume of ~667,183. Its 52 weeks high was at $0.55 and 52 weeks low at $0.19, with an average volume of 1,382,551. Its absolute returns for one year, six months, and three months are -36.36%, -48.96%, and -22.22%, respectively.
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