some nice production figures announced and the olmos sands well is drilling away
ASX Release 19 January 2011
PRODUCTION
Texon advises that the gross production from its 12 producing wells has recently averaged 1,200 boepd (818 bopd and 4,591 mcfgpd). Texons beneficial interest (NRI) from this production is about 600 boepd (437 bopd and 1,962 mcfgpd) including the recently announced Eagle Ford result. Eighty five percent (85%) of Texon gas is from the Eagle Ford and Olmos reservoirs. Gas has been converted to barrels of oil equivalent (boe) on the basis of 12mcf of gas to 1boe. As a result, Texon gas has a sales value of some US$80-90/boe in line with the current value of a barrel of oil.
Additional Production
Additional production is expected from four (4) new wells in the next two months.
Three Olmos Wells
The first of three (3) Leighton Olmos production wells began drilling on 17 January, 2011. Each well will take about 15 days to drill, run casing, and suspend ready for fracture stimulation and production testing. It is expected that these wells will be tested and in production in March. Texon has an average 70% WI (52.5% NRI) in these wells. Second Eagle Ford
The fracture stimulation and production testing of the Companys second Eagle Ford well (Teal EFS #1H) is also scheduled to take place in March this year, and the well will immediately be placed in production. Texon has 100% WI (75% NRI) in this well. Please refer to Texons website for announcements by the Company: www.texonpetroleum.com.au Oil and gas futures prices (Source: NYMEX February 2011 contracts) Oil: US$91.02/bbl Gas: US$4.50/mmbtu (approx. US$7.2/mcf for all Texon gas - including US$7.60/mcf for Eagle Ford and Olmos gas) -Ends-
TXN Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
