Texon Petroleum
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 looking for Eagle Ford oil project buyers, confident of getting good price
Thursday, February 23, 2012 by Bevis Yeo
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.
No investment advice
The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.
You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.
From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.
