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Texon Petroleum Limited (ASX:TXN) Announces First Eagle Ford Well 30 Day Result.

Brisbane, Australia, Jan 17, 2011 - (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its first Eagle Ford Well, Tyler Ranch EFS #1H, has produced 19,651 boe (17,814 bo + 22,052 mcfg) over 30 days on a restricted choke. This represents an average daily oil equivalent rate of 655 boepd (594 bopd + 735 mcfgpd).

At the current Henry Hub gas price of about US$4.50/mmbtu, the Company receives approximately US$7.60/mcf 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 12mcf of gas to 1boe. As a result each boe of gas has a sales value of some A$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.

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

Texon's working interest in the well is 82%. Texon's beneficial interest (NRI) in the production is 61.6% or some 403 boepd of the above production.

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

- Oil: US$91.54/bbl

- Gas: US$4.50/mmbtu (approx. US$6.3/mcf for all Texon gas- including US$7.60/mcf for Olmos and Eagle Ford gas)

About Texon Petroleum Ltd:

Texon Petroleum Limited's (ASX:TXN) goal is to find commercially producible oil and gas by drilling 3D seismic controlled high equity prospects which have targets analogous to adjacent producing wells on established oil and gas producing trends in Texas.

Copyright 2011 ABN Newswire

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Publication:ABN Newswire
Date:Jan 17, 2011
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