Texon Petroleum Limited (ASX:TXN) Sixth Leighton Oil And Gas Well Successful, Initial Production In 10-14 Days
Brisbane, April 22, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (
ASX:TXN) advises that Tyler Ranch #5 ("TR#5") has reached its total depth of 2,743 metres (9,000 feet).
This is the sixth well in the Leighton oil and gas field - all of which have been successful.
The location of TR#5 is shown on the attached map (see the following link).
The targeted Olmos reservoir in TR#5 has a thickness similar to the Olmos in the previous five (5) Leighton wells and has similar reservoir characteristics.
It is now planned to run production casing in the well after which the well will be fracture stimulated (in the next 10-14 days) and then the well will be connected for oil and gas production.
The success of this well supports the Company's plans to develop the Leighton oil and gas field with up to a further 25 wells. The Commonwealth Bank of Australia (ASX:CBA) has been mandated to explore financing options for this project with a targeted third quarter 2010 start-up of the drilling programme.
Texon has an overall 79% working interest (59% net revenue interest) in Leighton.
Please refer to Texon's website for announcements by the Company: http://www.texonpetroleum.com.au
Oil and gas futures prices (Source: NYMEX May 2010 contracts)
Oil: US$83.71/bbl
Gas: US$3.97/mmbtu (approx. US$4.60/mcf for all Texon gas - including US$5.60/mcf for Leighton Olmos gas)
For the complete Texon Petroleum announcement including the above-mentioned map, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/62677-ASX-TXN-220108.pdf
Contact
Dr. John Armstrong
Chairman
Brisbane: TEL: +61-7-3211-1122
Mr. David Mason
Chief Executive Officer
Brisbane: TEL: +61-7-3211-1122
Houston: TEL: +1-281-419-4976
(Houston is 16 hours behind Aust. Eastern Standard time)
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