Sydney, June 25, 2012 (ABN Newswire) - United States focused oil & gas producer and explorer AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is pleased to report oil and gas production for the months of April and May 2012.

The majority of production came from the company's East Tonkawa production hub in the 5,500 acre Snake River Project.

Due to rain and flooding, the East Tonkawa Unit was shut in for safety concerns with no production for the first eight (8) days of May; however, the wells were restarted with normal production five (5) days thereafter.

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Month Total Production Average Daily 
            BOE         Production
------------------------------------
January     6,698       216
February    4,320       149
March       5,385       175
April       4,985       166
May         5,300       170
------------------------------------

Daily Production expected to increase strongly from June onwards

AOK expects daily production rates to increase from June onwards as new producing wells come online. Specifically, the Balder #1 Horizontal Well (AOK: 14.15% WI) is expected to make a material contribution to daily production.

Additionally, AOK expects daily production to increase and stabilise once the first two wells at its second production hub (the Blubaugh) in the Snake River Project come on-stream in the coming weeks.
Production for the first 14 days of June averaged 300 boe/day net to AusTex.

Executive Chairman Mr. Richard Adrey commented: "Production was stable for April and May and we are very confident that production levels will pick up from June onwards, especially given the contribution from our first horizontal well in which we participated with Range Resources (NYSE:RRC). We also expect improved production from some of our existing vertical wells which have been disrupted due to some minor technical difficulties."

Managing Director Mr. Daniel Lanskey added: "Production growth is the company's primary focus. With four wells under completion and a further two vertical wells being drilled each month, AOK is well placed to deliver increased and sustainable production rates from this point onwards."

Following is the status of all of the company's wells:

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Well            Status 
-----------------------------------------------------------
East Tonkawa Production Hub
-----------------------------------------------------------
ETU #14-5        Producing - Mississippi Lime
ETU #15-4        Producing - Mississippi Lime
ETU #17-6        Under Completion
ETU #14-7        Reached Total Depth and has been 
                 logged, cased and waiting completion 
                 in Mississippi Lime

Balder #1-30N    Producing - Mississippi Lime
(AOK - 14.15%WI) 
Adams #1         Completed and awaiting gas sales 
                 line and water disposal lines. 
-----------------------------------------------------------
Blubaugh Production Hub
-----------------------------------------------------------
Blubaugh #20-1 SWD   Disposal - Under completion
Blubaugh #20-1       Awaiting completion - Mississippi Lime
Blubaugh #21-3       Awaiting Completion - Mississippi Lime 
-----------------------------------------------------------
Kansas
-----------------------------------------------------------
Clarke #1            Producing - Lansing Kansas City
Cooper #1            Producing - Lansing Kansas City
Ludwick #1           Producing - Arbuckle - Waiting on SWD 
                     connection  (Electricity now connected)
Mollhagen #1         Completed awaiting SWD
Quackenbush #1       Rig onsite. Drilling to commence shortly.
-----------------------------------------------------------

Link: http://www.abnnewswire.net/media/en/docs/ASX-AOK-683499.pdf

About AusTex Oil Limited:

AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is an Australia-based company. The Company is engaged in the development of oil and gas leases in the United States. It produces oil and gas from leases in Oklahoma and Kansas. It is also engaged in the exploration, development and production of hydrocarbons in the United States. Its wholly owned subsidiaries include International Energy Corporation (Oklahoma), International Energy Corporation (Kansas) and Well Enhancement Services LLC. During the year fiscal year ended March 31, 2009 (fiscal 2009), the Company was engaged in the drilling of three wells on the Lancaster Lease group, Tulsa County; two wells on the Sweet Unit, Pawnee County, and one well on the BlueHawk Project in Osage County.

Source:

AusTex Oil Limited

Contact:
AusTex Oil Limited
T: +61-2-9238-2363
F: +61-2-8088-7280
WWW: www.austexoil.com