First Eagle Ford Well Update

RNS Number : 5587Z

Global Petroleum Ltd

17 January 2011

 



17 January 2011

RNS AIM release

Global Petroleum Limited - First Eagle Ford Well - 30 Day Result

Texon Petroleum Ltd (ASX: TXN) has advised that the first Eagle Ford well, Tyler Ranch EFS #1H, has produced 19,651 boe (17,814 bo and 22,052 mcfg) over 30 days on a restricted choke.  This represents an average daily oil equivalent rate of 655 boepd (594 bopd and 735 mcfgpd).

Texon advise that at the current Henry Hub gas price of about US$4.50/mmbtu, approximately US$7.60/mcf is received for Eagle Ford gas due to its high heating value and including the value of the natural gas liquids.

Gas has been converted to barrels of oil equivalent (boe) on the basis of 12 mcf of gas to 1 boe.  As a result each boe of gas has a sales value of some $90/boe in line with the value of a barrel of oil. Thus all of the above 19,651 boe produced in the first month have the same sales value as barrels of oil.

Global has a 7.939% working interest in the well and a beneficial interest (NRI) in the production of 5.95% or some 39 boepd of the above production.

The Company's share of oil and gas being produced from the well is now part of Global's revenue stream.

Global has a 7.939% working interest in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale.  Global's interest in the Leighton prospect also includes a 15% working interest in approximately 873 acres from the surface down to the stratigraphic equivalent of the Olmos formation.  Global has an interest in 7 producing Olmos wells.

Oil and gas futures prices (Source NYMEX February 2011 contracts)

Oil:       US$91.54/bbl

Gas:    US$4.50/mmbtu (approximately US$7.60/mcf for Olmos and Eagle Ford gas)

Enquiries:

Global Petroleum Limited
Clint McGhie	Tel	+ 61 8 9322 6322
	Email	[e-mail]
Northland Capital Partners Limited (Nominated Adviser and Broker)
William Vandyk	Tel	[phone]

Glossary:

bbl:            barrel

bo:             barrels of oil

boepd:       barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 12 mcf to 1 barrel of oil equivalent)

bopd:         barrels of oil per day

mcf:           thousand cubic feet

mcfg:         thousand cubic feet of gas

mcfgpd:     thousand cubic feet of gas per day

mmbtu:      million British thermal units

NRI:           Net Revenue Interest

 

END

 

 

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