Texon Petroleum Limited : Olmos Sale Bolsters Cash
03/08/2012| 05:13am US/Eastern
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ASX Announcement
Date: 7 March 2012
Texon Petroleum Ltd
ABN 24 119 737 772
Level 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 & CEO
cfoss@texozep.com
or:
John Armstrong Chairman john.armstrong@texonpetroleum.com.au
Website:
www.texonpetroleum.com.au
ASX Code: TXN
Olmos Sale - Bolsters Cash
Texon advises that it has closed a Purchase and Sale
Agreement with a USA based company whereby Texon has sold its
holdings in the Leighton area Olmos reservoir.
Texon's proceeds from the sale amount to approximately
US$12.4 million before tax - which will bolster the Company's
cash position which at 31 January 2012 was US$ 13.7
million.
The attached map shows the area in which the Olmos reservoir
has been sold. In this area, the sale comprises the oil and
gas leases from the surface to just below the Olmos reservoir
and includes the untested Wilcox in this area.
Eagle Ford not included
The sale does not include any Eagle Ford leases which were
subject to the Company's announcement last week. It does not
include:
• The Eagle Ford reservoir in the Olmos sale
area;
• The Pearsall reservoir in the Olmos sale area;
• The Wilcox, Olmos, Eagle Ford or Pearsall reservoirs
in the Mosman/Rockingham area; or
• Any other Texon Eagle Ford leases.
Clifford S. Foss, President of Texon Petroleum said "The sale
is in line with the plan outlined to shareholders in the
Company's August 2011 letter and will enable us to proceed
with other projects where there will be better value leverage
from this capital."
2
Oil and gas futures prices:
Source: NYMEX April 2012
Oil: US$104.89/bbl
Gas: US$2.34/mmbtu (this translates to approx. US$3.90/mcf
for all Texon gas - including US$4.40/mcf for Olmos and Eagle
Ford gas
Glossary:
bbl: barrel
bopd: barrels of oil per day mcf: thousand cubic feet
mmbtu: million British thermal units
Attachment to Texon Release dated 7 March 2012
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