Texon Petroleum Limited (ASX:TXN) Grows Leighton Production Fourth Well With Flowing Oil And Gas 500 BOEPD
Brisbane, Oct 1, 2009 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that the fourth well on its Leighton Project, Tyler Ranch #3, has begun to flow oil and gas at the gross rate of 500 boepd from the Olmos reservoir comprising 377 bopd and 746 mcf of gas per day through a 12/64 choke, at a flowing pressure at the surface of about 2,600 psi. This flow rate exceeds the initial flow rates of the previous 3 Leighton wells.
The combined production rate of the four Leighton wells (Peeler #1, Tyler Ranch #1, Tyler Ranch #2 and Tyler Ranch #3) at this time is a gross 1,085 boepd with Texon's share being 570 boepd. Tyler Ranch #3 has been connected to oil tanks and the gas sales pipeline so that the Company will now begin to obtain revenue from the production.
Texon has a 70% working interest (52.5% net revenue interest) in the Leighton Project with joint venture parties Global Petroleum Limited (ASX:GBP)(15%) and Excellong, Inc (15%).
Tyler Ranch #4 (Fifth Leighton Well)
Further to the Company's release of 11 September 2009, the next (fifth) Leighton production well (Tyler Ranch #4) is anticipated to commence drilling next week.
In addition to targeting the Olmos reservoir, Tyler Ranch #4 will be deepened to the Eagle Ford Shale which has flowed oil and gas from Petrohawk wells at rates of 3.8-8.3mmcfgpd and 200-395 bbl of condensate (oil) per day and which represents a significant upside opportunity for the Company in the Leighton area.
Texon's CEO, Mr David Mason said:
"this initial flow rate is a very pleasing result and I am looking forward to the next well, Tyler Ranch #4, which, if successful, will not only be another producing well from the Olmos but will also investigate whether the Eagle Ford Shale contains producible oil and gas at Leighton. If successful, the Eagle Ford Shale could add significant value to the Company's holdings in Leighton and Mosman. Tyler Ranch #4 should reach the Olmos and Eagle Ford Shale targets about the end of October."
Please refer to the Company's website for all recent announcements:
http://www.texonpetroleum.com.au
Latest oil and gas futures prices [Source: NYMEX November 2009 contract]
Oil: US$70.20/bbl
Gas: US$4.80/mmbtu
Contact
Dr John Armstrong
Chairman
Brisbane: +61-7-3211-1122
Mr David Mason
Chief Executive Officer
Brisbane: +61-7-3211-1122
Houston: +1-281-419-4976
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