Texon Petroleum Limited (ASX:TXN) Lennox Drilling Commences
Brisbane, Sep 13, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) Lennox #1 well is currently at a depth of 1,180ft preparing to set surface casing. The well is anticipated to take 7-9 days to complete drilling.
The Lennox #1 well is the first of a two well back to back program. The second well, Nambucca #1, will commence drilling immediately after the Lennox #1 has been drilled.
Lennox and Nambucca are close to the Company's 95% WI Avoca Well which has been on-stream for 2 years from the Yegua formation - the target in Lennox and Nambucca. Avoca is currently producing at the rate 950 mcfgpd and 4 bopd (162 boepd).
Texon has retained a 32.4% WI (24.3% NRI) for minor cost exposure after farming out to and entering into a drilling joint venture with US Independent Bright & Company who is operating the wells.
Oil and gas futures prices (Source: NYMEX October 2010 contracts)
Oil: US$76.65/bbl
Gas: US$3.83/mmbtu (approx. US$5.00/mcf for all Texon gas - including US$6.10/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 15 hours behind Aust. Eastern Standard time)
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