Texon Flows Oil from Leighton's Tyler Ranch #2
Texon Petroleum advised that the third well on its Leighton Project, Tyler Ranch #2, has begun to flow oil and gas at the gross rate of 366 boepd from the Olmos reservoir comprising 240 bopd and 756 mcf of gas per day through a 12/64 choke, at a flowing pressure at the surface of about 2,365 psi. This is in line with the first two wells which averaged 360 boepd per well initial production rate.
The combined production rate of the three Leighton wells (Peeler #1, Tyler Ranch #1 and Tyler Ranch #2) at this time is a gross 600 boepd with Texon's share being 315 boepd. Tyler Ranch #2 has been connected to oil tanks and a gas sales pipeline so that the Company will now
begin to obtain revenue from the production.
Texon has a 70% working interest (52.5% net revenue interest) in the Leighton Project with joint venture parties Global Petroleum Limited (15%) and Excellong, Inc (15%).
Tyler Ranch #3
Texon also advised that drilling continues on the fourth Leighton production well (Tyler Ranch #3) which is at a depth of 4,189 ft (1,277 m) and is anticipated to reach the targeted Olmos oil and gas reservoir in 6 to 8 days.
The Company's mid year Reserves Report included reserves attributable to 12 Proved Undeveloped well locations in the Leighton Oil and Gas Field. Tyler Ranch #2 and Tyler Ranch #3 are on two of these locations, so that after these wells, there are a further 10 similar Proved Undeveloped locations identified for drilling -- together with a further 16 other potentially drillable well locations in the Leighton oil and gas field.
Tyler Ranch #4
The next (fifth) Leighton production well (Tyler Ranch #4) will also be drilled on one of the Proved Undeveloped locations and will be subject to a separate announcement by the Company. 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 nearby wells and which represents a significant upside opportunity for the Company in the Leighton area.
Texon's CEO, Mr David Mason said, "The successful testing of Tyler Ranch #2 together with the first two Leighton wells (Peeler #1 and Tyler Ranch #1) has resulted in a 100% success rate so far for the Leighton Oil and Gas Field production well drilling program." He added, "This is a very good result and it signals the likelihood of an ongoing producing well drilling program at Leighton on the basis of the already established 10 similar PUD locations and the other 16 potential locations."