Texon advises that Peeler #3 (P#3) has reached its total vertical depth of 2,774 metres (9,100 feet). This is the eleventh well in the Leighton oil and gas field – all of which are successful oil and gas producers.

P#3 is the northern most well drilled to date in the Leighton field (see attached map). The targeted Olmos sand in P#3 has reservoir characteristics similar to the other Olmos production wells. This positive result confirms that the Leighton Olmos reservoir extends across the northern part of the field and that it contains good quality reservoir further de-risking the 24 undrilled Olmos well locations in the field.

Production casing has been installed in the well in preparation for fracture stimulation in August. The well will then be connected for oil and gas production.

The closest three Olmos production wells, Peelers #1 and #2 and Tyler Ranch #5 tested at initial rates of 170-445 boepd, including 80% oil, although as production progresses the proportion of gas increases.

Texon has a 50% working interest (37.5% net revenue interest) in Peeler #3.

Tags: Texon Petroleum Limited