Last checked at 1 Oct 2009 17:51
1 October 2009
RNS AIM release
LEIGHTON PRODUCTION GROWS
FOURTH WELL FLOWS OIL AND GAS 500 BOEPD
Tyler Ranch #3 (Fourth Leighton Well)
Texon Petroleum Ltd (ASX: TXN) has advised that the fourth well on the Leighton Project, Tyler Ranch #3, has begun to flow oil and gas at the gross rate of 500 boepd from the Olmos reservoir comprising 377 bopd and 746 mcf of gas per day through a 12/64 choke, at a flowing pressure at the surface of about 2,600 psi. This flow rate exceeds the initial flow rates of the previous 3 Leighton wells.
The combined production rate of the four Leighton wells (Peeler #1, Tyler Ranch #1, Tyler Ranch #2 and Tyler Ranch #3) at this time is a gross 1,085 boepd with Global's share being 122 boepd.
Tyler Ranch #3 has been connected to oil tanks and the gas sales pipeline so that Global will now begin to obtain revenue from the production.
Global has a 15% working interest (11.25% net revenue interest) in the Leighton Project with joint venture parties Texon Petroleum Limited (70%) and Excellong, Inc (15%).
Tyler Ranch #4 (Fifth Leighton Well)
The next (fifth) Leighton production well (Tyler Ranch #4) is anticipated to commence drilling next week.
In addition to targeting the Olmos reservoir, Tyler Ranch #4 will be deepened to the Eagle Ford Shale which has flowed oil and gas from Petrohawk wells at rates of 3.8-8.3mmcfgpd and 200-395 bbl of condensate (oil) per day and which represents a significant upside opportunity for the joint venture in the Leighton area.
Latest oil and gas futures prices [Source: NYMEX November 2009 contract]:
Oil: US$70.20/bbl
Gas: US$4.80/mmbtu
Enquiries:
| Global Petroleum Limited | ||
| Shane Cranswick | Tel | + 61 8 9322 6322 |
| | global.info@globalpetroleum.com.au | |
| Astaire Securities Plc (Nominated Adviser and Broker) | ||
| William Vandyk | Tel | +44 20 7448 4400 |
Glossary:
bbl: barrel
boepd: barrels of oil equivalent per day
bopd: barrels of oil per day
mcf: thousand cubic feet
mmbtu: million British thermal units
mmcfgpd: million cubic feet of gas per day
psi: pounds per square inch