Texon Petroleum plans to drill a fifth Leighton Olmos production well and that the well will be deepened to investigate whether the Eagle Ford Shale contains producible oil and gas at Leighton. Leighton – Olmos

The Olmos is the oil and gas productive reservoir in the first three producing Leighton wells (Peeler #1, Tyler Ranch #1 and Tyler Ranch #2) and is the target for the fourth (Tyler Ranch #3) and fifth (Tyler Ranch #4) Leighton wells.

Tyler Ranch Nos. 2, 3, and 4 are on three (3) of the 12 Proved Undeveloped well locations which made up part of the Company’s mid year proved reserves of 1.1mmboe. The test result of Tyler Ranch #2 was reported earlier today. When Tyler Ranch #3 and Tyler Ranch #4 have been drilled, there will be nine remaining Proved Undeveloped well locations and 16 other potential drillable locations available for drilling further Leighton production wells.

Tyler Ranch #4 is located approximately 320m West of Tyler Ranch #1 and is scheduled to begin drilling in early October and take 12-15 days to reach the Olmos target at about 8,800ft (2,682m). The well will then be deepened by 2,000ft (610m) to investigate whether the Eagle Ford Shale is oil and gas bearing at Leighton and this should take a further 5-7 days.

Texon has a 70% Working Interest (52.5% beneficial interest) in 800 acres and a 100% Working Interest (75% beneficial interest) in the other 480 acres. As set out in the Company’s recent presentations, such an area could possibly involve the drilling of 30 production wells on the Proved Undeveloped and other locations representing an overall Olmos potential at Leighton to Texon at 70% Working Interest of 2.5mmboe.

Tags: Texon Petroleum Limited