Global Petroleum Regulatory News (GBP)

15 Aug 2008 09:54



15 August 2008

FARM IN - LEIGHTON OIL PROSPECT

Global Petroleum Limited ("the Company") is pleased to advise that it will farm in to the soon to be drilled Leighton oil prospect owned by Texon Petroleum Limited (ASX: TXN). The prospect is located onshore on the Gulf Coast of Texas, USA. The Company will earn a 15% Working Interest ("WI") in the first well by funding 30% of the cost of drilling the well, which is expected to be approximately US$300,000.

In addition, Global will reimburse Texon US$180,000 in respect of prospect generation, land and lease costs for the well.

When the first well on Leighton has been drilled, Global will have the option to participate in the drilling of a second well on the Leighton prospect under the same terms to earn a WI in the Leighton leases. Global only earns a 15% WI in Leighton when this second well has been drilled. All subsequent wells drilled on Leighton will be at each company's earned working interest. 

Leighton is an oil prospect where the target is at a depth of approximately 2,744m (9,000 ft). Proposed total depth for the well is 2,835m (9,300ft). The well is expected to begin in mid September and take about 30-40 days to drill.

The Leighton Prospect covers an area of 600 acres. If successful, and on the basis of data from a nearby field, full development of Leighton could involve the drilling of 10-15 wells. Initial production rates from wells in the nearby field have been between 70 and 400 bopd with gas.

Enquiries:

Forward-Looking Statements: This regulatory news release contains certain estimates and forward looking statements, which include assumptions with respect to future plans, results, financing and capital expenditures. Volumes described from nearby fields are not necessarily representative of future production volumes from the new prospect. The reader is cautioned that assumptions used in the preparation of this information may prove to be incorrect. All such estimates and forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Reservoir quality and quantity, seal, structural timing, hydrocarbon source issues, faulting, and the availability of 3D seismic data over the target are but a few of the many risk factors that typify each and every drilling prospect. Please refer to the Company's Admission Document available from the Company's web site for a list of risk factors. The Company's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. All subsequent estimates and forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the estimates and forward-looking statements contained in this news release are made as at the date of this news release.