Leighton Update

RNS Number : 5935A

Global Petroleum Ltd

12 October 2009

 



12 October 2009

RNS AIM release

DRILLING COMMENCES ON FIFTH LEIGHTON PRODUCTION WELL

Texon Petroleum Ltd (ASX: TXN) has advised that that the fifth Leighton well, Tyler Ranch #4, commenced drilling on 10 October 2009. The well has a planned total depth of 3,444 metres (11,300 feet) and will take about 20-25 days to drill. The well will penetrate the Olmos reservoir at approximately 2,703 metres (8,870 feet) , which is the same oil and gas reservoir as is producing in the first four Leighton wells (Peeler #1, Tyler Ranch #1, Tyler Ranch #2 and Tyler Ranch #3). Tyler Ranch #4 is located 326 metres south west of Tyler Ranch #1.

In addition to targeting the Olmos reservoir, Tyler Ranch #4 will drill deeper to the Eagle Ford Shale which has flowed oil and gas from Petrohawk wells at rates of 3.8-8.3mmcfgpd and 200-395 bbl of condensate (oil) per day and which represents a significant upside opportunity for the joint venture in the Leighton area.  

If the wire line electric logs indicate producible oil and gas in the Olmos reservoir the well will be completed as the fifth oil and gas producer from this zone.

Global has a 15% working interest (11.25% net revenue interest) in the Leighton Project with joint venture parties Texon Petroleum Limited (70%) and Excellong, Inc (15%).

Latest oil and gas futures prices [Source: NYMEX November 2009 contract] 

Oil:   US$72.27/bbl

Gas: US$4.79/mmbtu

Glossary:

bbl:               barrel

mmbtu:        million British thermal units

mmcfgpd:    million cubic feet of gas per day

Enquiries:

Global Petroleum Limited
Shane Cranswick	Tel	+ 61 8 9322 6322
	Email	[e-mail]
Astaire Securities Plc (Nominated Adviser and Broker)
William Vandyk	Tel	[phone]

 

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