Texon Petroleum Limited (ASX:TXN) Releases First Eagle Ford Well 45 Day Result
Brisbane, Jan 31, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (
ASX:TXN) advises that its first Eagle Ford Well, Tyler Ranch EFS #1H, has produced 24,862 bo + 32,006 mcfg over 45 days on a restricted choke. This represents an average daily oil equivalent rate of 671 boepd (552 bopd + 711 mcfgpd) on the basis that 6mcf equals 1 barrel of oil equivalent. The 30 day rate on the same 6:1 basis was 716 boepd. The restricted choke is used to maintain reservoir pressure, slow the decline in production and potentially enhance oil recovery.
With a Henry Hub gas price of US$4.50/mmbtu, the Company receives approximately US$7.60/mcf due to the high heating value of the Eagle Ford gas and the presence of natural gas liquids providing a valuable uplift in revenue in addition to the oil revenue.
Texon's working interest in the well is 82%. Texon's beneficial interest (NRI) in the 45 day production is 61.6% or some 403 boepd.
Oil and gas futures prices (Source: NYMEX February 2011 contracts)
- Oil: US$91.54/bbl
- Gas: US$4.50/mmbtu (approx. US$6.3/mcf for all Texon gas - including US$7.60/mcf for Olmos and Eagle Ford gas which make up 65% of Texon's gas production)
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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