Second Eagle Ford Well Update

RNS Number : 9304R

Global Petroleum Ltd

11 November 2011

 



11 November 2011

RNS AIM release

Global Petroleum Limited - Second Eagle Ford Well - Production

Tyler Ranch EFS #2H - 60 Days

Texon Petroleum Limited (ASX: TXN) has advised that the second Eagle Ford well in which Global has an interest, Tyler Ranch EFS #2H, has produced 38,677 bo and 31,329 mcfg over 60 days.  This represents an average daily rate of 732 boepd (645 bopd + 522 mcfgpd) on the basis of 6 mcf of gas converting to 1 barrel of oil equivalent.  

The volume of oil produced from the Company's second Eagle Ford well over its first 60 days of production is 24% more than the first Eagle Ford well in which Global has an interest, Tyler Ranch EFS #2H.

Tyler Ranch EFS #2H - 30 Days Correction

On 11 October 2011, a 30 day average rate of 1,000 boepd was reported for the second Eagle Ford well.  Texon have advised that the corrected 30 day average rate for Tyler Ranch EFS #2H is 817 boepd, with the oil rate still being significantly better (some 23%) than the first Eagle Ford well over its first 30 days.

The cause of the discrepancy was a faulty oil meter which for seven (7) days was reading above the actual rate - now determined on the basis of oil tanker off-take volumes from the well site.  On-site personnel changed the meter but continued to report the prior incorrect daily oil readings for the previous seven (7) days and this resulted in reporting the wrong 30 day average. 

Texon advise that oil and gas measurement systems and procedures for both of the Eagle Ford wells in which Global has an interest have been checked by an experienced production engineer and are in good order. 

Global has a 7.939% working interest (5.95% NRI) in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale. 

Enquiries:

Global Petroleum Limited
Peter Hill	Tel	[phone]
Managing Director and CEO
Clint McGhie	Tel	[phone]
Company Secretary	Email	[e-mail]
Northland Capital Partners Limited (Nominated Adviser and Broker)
William Vandyk	Tel	[phone]

Glossary:

bbl:            barrel

bo:             barrels of oil

boe:           barrels of oil equivalent

boepd:       barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 6 mcf to 1 barrel of oil equivalent)

bopd:         barrels of oil per day

mcf:           thousand cubic feet

mcfg:         thousand cubic feet of gas

mmcfg:      million cubic feet of gas

mcfgpd:     thousand cubic feet of gas per day

mmbtu:      million British thermal units

NRI:           Net Revenue Interest

psi:            pounds per square inch

 

END

 

 

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