Texon Petroleum (ASX: TXN) is an Australian-based oil and gas explorer and producer with its operations located in the Gulf Coast of Texas, USA.
Texon Petroleum (ASX:TXN) has put its Eagle Ford oil project up on the market and is confident of attracting strong interest from companies already established in the rapidly growing play.
With four successful production wells that had produced at an average initial production rate of over 1400 barrels of oil equivalent (boe) per day each, the company said its leases had been largely de-risked.
Any buyers of the 29 square kilometre (7200 acre) project that Texon is offering will also benefit from its experience in drilling and developing wells there.
It noted the fracture stimulation design of the third and fourth wells – Tyler Ranch-2H and Hoskins-1H – had benefited from the experience gained from the first two wells.
These wells could act as a guide for future Eagle Ford production wells in the area, which Texon believes could produce over 600,000 boe, 90% of which is oil and gas liquids.
With 96 Eagle Ford drilling locations, including the 4 wells already drilled, and Texon’s 93% working interest over the leases, the project has the potential to produce over 55 million boe.
Albrecht & Associates and RBS Morgans have been appointed to seek potential buyers for all or part of the leases.
Texon is also looking for buyers for its Leighton Olmos project, which has 12 successful production wells.
While the company is not exactly shy for cash, with A$13.4 million in the bank as of the end of December 2011 quarter, proceeds from the sale will allow Texon to accelerate exploration and development of its remaining U.S. leases or acquire new projects.