ASX Announcement
Date: 5 August 2011
Texon Petroleum LtdABN 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 David Mason Bernard RowleyCompany Secretary:Des Olling
Contact: David Mason President & CEOdave.mason@texonpetroleum.com.au
or:
John Armstrong Chairman john.armstrong@texonpetroleum.com.au
Website:www.texonpetroleum.com.au
ASX Code: TXNIluka Drilling
Rig Then Moves to Texon’s First
Wilcox Oil Test
IlukaTexon advises that the Iluka well (Scherer #1) spudded on the
1st of August. This is a small gas prospect where the Yegua reservoir is the target. Iluka is the last of Texon’s three (3) shallow Yegua prospects to be drilled. Texon originally had a 100% WI but sold all three Yegua prospects on a promoted basis to a private USA based company. Wells on the prior two prospects were successful Yegua completions for gas production. The cost to Texon’s retained 32.5%WI is largely covered by the promoted USA based company.WilcoxDrilling of Iluka is expected to take 10 days, at which time the rig will move to drill Texon’s first well where Wilcox oil reservoirs are the target. (Please refer to Texon’s release of
7 April 2011). -endsOil and gas futures prices: (Source: NYMEX Sept 2011 contracts) Oil: US$90.29/bblGas: US$4.07/mmbtu (this translates to approx. US$6.70/mcf for all Texon gas – including US$7.70/mcf forOlmos and Eagle Ford gas)
Glossary:bbl: barrel
mcf: thousand cubic feet
mmbtu: million British thermal units
WI: Working Interest