AusTex Oil Ltd. (ASX:AOK - OTCQX:ATXDY) updated shareholders on its continued well development program at the company's 100% owned 5,500 acre Snake River project in Kay County, Okla.

AusTex has now drilled 10 vertical wells (nine production wells and one salt water disposal well) at its Snake River project to an average depth of 4,750 feet and at an average cost of $600,000 per well.

The #20-1D Salt Water Disposal (SWD) well is now approved and operational at production hub No. 2. Five production wells are now on pump with a further four wells awaiting completion.

Additional development wells have been permitted, and AusTex is on schedule to drill two new vertical wells each calendar month between now and December.

AusTex has also entered into agreements to participate in up to 4 new horizontal wells with Range Resources Corp. (NYSE: RRC) in the coming months.

New vertical and horizontal wells will have a material impact on AusTex's production as these wells come on pump.