Texon Petroleum Limited (ASX:TXN) 3 Gas Prospects Farmed Out, Drilling In June - July
Brisbane, April 29, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (
ASX:TXN) advises that it has farmed out three (3) gas prospects with Yegua and Frio reservoir targets.
The 3 prospects are within a few kilometres of Texon's Avoca well which after 23 months is still producing 1 million cfgpd. Combined, the 3 prospects have a gross potential of 2-4 bcf of gas and 10- 20,000 barrels of oil.
The farminee (US Independent - Bright & Co.) is committed to drill two (2) of the prospects and has an option on the third.
Drilling of the first two wells is expected to take place in June and July this year.
As a result of the farm-in terms, Texon will retain about 32.4% working interest (WI)* in each of the prospects with its share of cost to drill, case, complete and connect the wells for production being substantially funded by the farminee.
* Texon has a 75% Net Revenue Interest in this WI.
Oil and gas futures prices (Source: NYMEX May/June 2010 contracts)
Oil: US$83.09/bbl
Gas: US$4.28/mmbtu (approx. US$4.90/mcf for all Texon gas - including US$6.00/mcf for Leighton Olmos gas)
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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