ASX Announcement
Date: 23 February 2012
Texon Petroleum Ltd ABN 24 119 737 772Level 9, 46 Edward Street
Brisbane, Qld Australia 4000
Postal: GPO Box 402
Brisbane, Qld Australia 4001
Telephone: +61 7 3211 1122
Fax: +61 7 3211 0133
Directors: John Armstrong Bernard Rowley David Mason Company Secretary:Des Olling
Contact: Cliff Foss President & CEOcfoss@texozep.com
or:
John Armstrong Chairman john.armstrong@texonpetroleum.com.au
Website: ASX Code: TXNEagle Ford Oil Project
Texon advises that it has appointed Albrecht & Associates,
Inc. and RBS Morgans Limited to seek potential buyers for all
or part of the Company's 7,200 acre Eagle Ford oil
project.
Texon has drilled four (4) Eagle Ford production wells which
had an average initial production rate of over 1,400 boepd.
Fracture stimulation design of the third and fourth wells
(Tyler Ranch #2(H) and Hoskins #1(H)) benefited from the
experience gained on the first two wells and is expected to
be a guide to Eagle Ford well productivity in this area. On
the basis of the productivity of Tyler Ranch #2(H) and
Hoskins
#1(H), new wells are forecast to produce over 600,000 barrels
of oil equivalent, 90% of which is oil and gas liquids.
Texon has an average 93% Working Interest in its Eagle Ford
leases. There are 96 Eagle Ford well locations on these
leases (including the 4 wells already drilled) representing a
resource potential to the Company's Working Interest of
over
55 million barrels of oil equivalent.
The Company believes that its four (4) Eagle Ford wells have
largely de-risked its Eagle Ford leases and that a sale will
provide the opportunity for shareholders to benefit from the
value of these holdings.
A map showing the location of Texon's Eagle Ford leases is
attached.
Clifford S. Foss, President of Texon Petroleum said "It is
expected that Texon's operatorship and 93% Working Interest
position in its high performance Eagle Ford holdings will
attract considerable interest from companies already
established in the Eagle Ford play and who are wanting to
expand their position in Texon's highly oil productive part
of the Eagle Ford trend".
-ends
2
Source: NYMEX April 2012
Oil: US$105.95/bbl
Gas: US$2.66/mmbtu (this translates to approx. US$4.40/mcf for all Texon gas - including US$5.10/mcf for Olmos and Eagle Ford gas
Glossary:bbl: barrel
boepd: barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 6mcf to 1 barrel of oil equiv)
bopd: barrels of oil per day mcf: thousand cubic feet
mmbtu: million British thermal units
Attachment to Texon Release dated 23 February 2012