ASX Announcement
Date: 27 September 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: Clifford S. Foss President & CEO cfoss@texozep.comTel: +1 832 510 2076
or:
John Armstrong Chairman john.armstrong@texonpetroleum.com.auTel: +61 7 3211 1122
Website: ASX Code: TXNRoundhouse Prospect, Navarro County, Texas
Texon Petroleum has acquired a 50% Working interest in the
Roundhouse Prospect located in Navarro County, Texas (see
attached map) which encompasses 7,038 gross acres (3,519 net
acres) of Cotton Valley Lime reservoir potential from private
US oil and gas company Tanos Energy Holding, LLC. Tanos will
remain operator with 50% working interest in the
prospect.
The East Texas, Cotton Valley Lime play is a naturally
occurring fractured oil reservoir in the early stages of
development as a new horizontal drilling and completion
technology play. The Cotton Valley Lime reservoir has
previously been drilled and produced through natural
fractures in the adjacent Cheneyboro Field through non
stimulated vertical wells. To date, this direct offsetting
field has yielded in excess of 3 mmbbls of oil.
The prospect will tested by applying modern horizontal
drilling and completion technology planning to intersect
multiple naturally occurring fractures within the Cotton
Valley reservoir. Texon estimates that it may recover 200-300
mbo per well, with overall potential within the prospect of
10-12 mmbo. The initial test well is planned for drilling
operations to begin during the first quarter of 2013.
-ends
Source: NYMEX November 2012
Oil: US$90.21/bbl
Gas: US$3.05mmbtu (this translates to approx. US$5.10/mcf for all Texon gas - including US$5.80/mcf for Olmos and Eagle Ford gas)
Glossary:bbl: barrel
mbo: thousand barrels of oil mcf: thousand cubic feet mmbbls: million barrels
mmbo: million barrels of oil
mmbtu: million British thermal units
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