Texon Prepares to Test Peeler-1 in Leighton Prospect
Texon Petroleum Limited has advised that the first well on the Leighton prospect, Peeler-1, has reached a total depth of 2,805 meters (9,201 feet) after intersecting the target sand. Wire line electric logs indicate a potential oil and gas bearing formation at 2,675 meters (8,777 feet) with a thickness of 7 to 8 meters (25 feet) which is within the anticipated thickness range.
Texon advised that when the above formation was being drilled there were oil and gas shows and during electric logging operations, a small amount of straw colored oil was recovered from the surface of the drilling mud in the mud pit.
Production casing will now be run in preparation for testing this zone in the next two to four weeks with separate testing equipment. Texon has begun to source production equipment so that if this test is successful, the well can be placed on production as soon as testing has been concluded.
Global will earn a 15% Working Interest ("WI") in the well by funding 30% of the cost of drilling the well, which is forecast to be approximately US $300,000. In addition, Global has reimbursed Texon US $180,000 in respect of prospect generation and lease costs for the well.