Texon Petroleum Mosman Rockingham New Olmos Well
Brisbane, April 19, 2012 AEST (ABN Newswire) - In the Texon Petroleum Ltd (
ASX:TXN) Chairman's letter to shareholder's dated 15 March 2012 there was reference to the review of newly acquired 3D seismic which would aid an understanding of the Olmos oil reservoir potential of the Company's Mosman-Rockingham leases.
The review indicates an area of 1,560 acres where the 3D response to the Olmos is similar to the 3D Olmos character at Leighton. This suggests a potential for thirty (30) Olmos wells on 40 acre spacing at Mosman-Rockingham similar to the number of Olmos well sites at Leighton.
Texon plans to begin drilling the first Mosman-Rockingham Olmos well on this new Mosman-Rockingham "Leighton look alike" 3D seismic in two-four weeks. The well will be drilled to the Olmos target at 9,000 feet. The drilling and fraccing operations are expected to be completed within 45 days of spud.
Average production from nearby Olmos wells in the AWP field to the east is 130,000 boe per well. Revenue would be 90% linked to the price of oil.
Texon will have a 95% Working Interest in the well.
On the above basis, the overall potential to Texon's WI in the Mosman-Rockingham Olmos is 3 mmboe.
Clifford S. Foss, President of Texon Petroleum said "this is an important new low risk initiative for Texon which, if successful, could begin production in July this year".
Contact
Texon Petroleum Ltd
T: +61-7-3211-1122
F: +61-7-3211-0133
E: texon.info@texonpetroleum.com.au
WWW: www.texonpetroleum.com.au
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