Out of the USD 2m cash payment from INWP at closing, USD 1.5m will be used in the next 30 days for a development program designed to raise the Seller's current production by an additional 2,000 mcfpd
and 80 bopd, for a total net income projected at USD 535,000 per month as cash flow into INWP.
Despite the reduced rate in the SM 71 F2 well, oil and gas sales have averaged 2,517 bopd of oil and 1,363 mcfpd
of gas (after platform usage) over the first two full days of production for both wells.
The initial production rate in January for the Hoskins EFS #3H was 2,007 boepd (1,751 bopd and 1,537 mcfpd
) with a flowing casing pressure of 3201 psi on a 22/64" choke.
The well has been production tested from a Frio zone at 5,761-5,764 feet and the latest flow rate of the well is 300 mcfpd
and 1 bopd on an 8/64-inch choke with flowing tubing pressure of 1,550 psi.
To date the Flying B Ranch #3 has attained a highest measured production rate of 465 BOPD and 248 MCFPD
of gas as the well continues to clean up with 45% of load water recovered.
Reservoir properties in the well (porosity and oil saturation) are comparable with the Leighton Olmos wells which tested at an average of 181 bopd + 330 mcfpd
or 236 boepd.
The company said the official 24 hour test determined 475 BOPD (barrels of oil per day), 232 MCFPD
(thousands of cubic feet) of gas and 103 BWPD (barrels of water per day) on a 20/64" choke.
1 , 900 mcfpd
and 130 bopd at a flowing tubing pressure of 4 , 000 psi on a 10/64ths choke.
According to the company's president and CEO, Ray Reaves, production from this new well appears to be stabilising in the range of 600 BOPD for oil and 600 MCFPD
for natural gas.
Brisbane, Australia, April 15, 2011 - (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its second Eagle Ford well, Teal Ranch EFS #1H, has flowed 1,228 boepd (1) representing 1,105 bpd of light sweet crude oil and 736 mcfpd
of gas with a flowing tubing pressure of 2086 psi through a 18/64" choke.
The plant, which went onstream, will bring forth the natural gas liquids (NGL) and when fully functional, will be collecting an average 100 to 104 million cubic feet each day (mcfpd
) of dry gas, thus preventing associated petroleum gas from being flared.
According to the company, the Haggard Unit B number one well was tested for an AOF of 1,414 mcfpd
of 0.62 Gr.