TXN - Texon Petroleum

[Agentm]

Wow we have just witnessed a VERY nice jump today for Texon today.

i read somewhere that The Tyler Ranch #1H is the company’s first Eagle Ford shale well, drilled in the Leighton project area in which the company has a WI of 82% across 1,651 gross acres. The well exceeded expectations, given Swift Energy’s San Miguel #1H which is located immediately to the south and flowed at an IP of 775bopd and 1.1mmscf/d and confirms the project area is located in a productive area of the volatile gas/oil window of the shale. The IP confirmed that the fraccing was well executed which should have positive implications for longer term production performance.

 

[pixel]

second well shows similar characteristics as the first

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01134956

? why then do they start fraccing only in March ??

 

[Agentm]

second well shows similar characteristics as the first

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01134956

? why then do they start fraccing only in March ??

90 days is pretty good atm..

some drillers are drilling a cluster of wells then fraccing on mass

real hard to get proppants, crews and equipment..

i am told in the coming months the problems of delays will be sorted out.. its a wrok in progress for all operators

90 days delays is brilliant really..

3 olmos sands wells get drilled in january 2011 all self funded..

 

[Mofra]

Definately turned the corner - both wells at ~1,200 BOPD is an outstanding result and unlike some of the other shale-fraccing plays in the US TXN holds majority working interest in their wells. Considering switching some of my SEA holding into TXN, volume permitting.

 

[J&M]

I sold a few of AUT to get into this at .565 glad I did
needed to wait a while before it took off
but happy about this stock now up 20%

 

[philly]

Today's announcement that the Teal EFS 1H well has reached TD and recorded strong oil and gas shows is just the filip to keep the SP moving upwards towards Christmas. Its a pity that fraccing will not occur until March 2011 but as Agentm notes there is so much activity occuring in the EFS that a 90 day wait is common. At least we know that both wells are in a sweet spot for oil and gas. IMHO their is no stopping TXN ATM.

 

[Agentm]

philly the second well appears to be presenting the identical characteristics the first well had..

texons maiden EFS horizontal turns out to be one of the best in the county

huge days ahead imho


ASX Release
21 December 2010

SECOND EAGLE FORD WELL

GOOD OIL AND GAS SHOWS

Texon advises that it has finished drilling and casing its second Eagle Ford well (Teal EFS #1H). Strong oil and gas shows were observed throughout the 4,500ft of horizontal drilling within the Eagle Ford reservoir similar to the oil and gas shows in the first Eagle Ford well that has just been tested. Production casing has been run in preparation for the fracture stimulation which has been contracted and is expected to begin in March. After this work has been completed, the well will be production tested.
Log analysis indicates that the reservoir characteristics (porosity, permeability and oil and gas content) in the Eagle Ford in this second well (Teal EFS #1H) are similar to the reservoir properties of the Eagle Ford in recently tested Tyler Ranch EFS #1H located 5 km to the Northeast and which flowed 1,200 bopd.

There are now three wells which have flowed substantial quantities of oil from the Eagle Ford in and around Texon’s Leighton, Mosman, Rockingham and Sutton leases (“LMRS”). These wells are shown on the map i.e. Texon’s first Eagle Ford well which flowed 1,200 bopd and two Swift wells which flowed respectively 1,134 bopd and 775 bopd. These results indicate that the Eagle Ford in Texon’s LMRS leases is in a liquids rich area.

Texon has a 100% Working Interest (75% net revenue interest) in the Teal EFS #1H well.

Texon has an overall 92% Working Interest in approximately 5,000 gross acres in the LMRS leases which surround or are nearby to Texon’s first Eagle Ford well. The Eagle Ford reservoir is expected to be present throughout these leases.

Texon’s nett Eagle Ford acreage holding is 4,550 acres which could represent a resource potential of some 30-34 mmboe as to the Company’s working interest or 23–26 mmboe as to Texon’s net revenue interest in these leases. Texon Petroleum Ltd

 

[Good Vibes]

ASX Release
22 December 2010

http://www.texonpetroleum.com.au/Documents/Investor/Announce2010/tplasx101222.pdf

 

[estseon]

philly the second well appears to be presenting the identical characteristics the first well had..

texons maiden EFS horizontal turns out to be one of the best in the county

huge days ahead imho


ASX Release
21 December 2010

SECOND EAGLE FORD WELL

GOOD OIL AND GAS SHOWS

Texon advises that it has finished drilling and casing its second Eagle Ford well (Teal EFS #1H). Strong oil and gas shows were observed throughout the 4,500ft of horizontal drilling within the Eagle Ford reservoir similar to the oil and gas shows in the first Eagle Ford well that has just been tested. Production casing has been run in preparation for the fracture stimulation which has been contracted and is expected to begin in March. After this work has been completed, the well will be production tested.
Log analysis indicates that the reservoir characteristics (porosity, permeability and oil and gas content) in the Eagle Ford in this second well (Teal EFS #1H) are similar to the reservoir properties of the Eagle Ford in recently tested Tyler Ranch EFS #1H located 5 km to the Northeast and which flowed 1,200 bopd.

There are now three wells which have flowed substantial quantities of oil from the Eagle Ford in and around Texon’s Leighton, Mosman, Rockingham and Sutton leases (“LMRS”). These wells are shown on the map i.e. Texon’s first Eagle Ford well which flowed 1,200 bopd and two Swift wells which flowed respectively 1,134 bopd and 775 bopd. These results indicate that the Eagle Ford in Texon’s LMRS leases is in a liquids rich area.

Texon has a 100% Working Interest (75% net revenue interest) in the Teal EFS #1H well.

Texon has an overall 92% Working Interest in approximately 5,000 gross acres in the LMRS leases which surround or are nearby to Texon’s first Eagle Ford well. The Eagle Ford reservoir is expected to be present throughout these leases.

Texon’s nett Eagle Ford acreage holding is 4,550 acres which could represent a resource potential of some 30-34 mmboe as to the Company’s working interest or 23–26 mmboe as to Texon’s net revenue interest in these leases. Texon Petroleum Ltd

ASX Release
22 December 2010

http://www.texonpetroleum.com.au/Documents/Investor/Announce2010/tplasx101222.pdf

Thanks, Vibes.

That would seem to provide an explanation of the delayed fraccing and testing of Teal.

 

[Agentm]

Thanks, Vibes.

That would seem to provide an explanation of the delayed fraccing and testing of Teal.

Very quiet thread, my view on txn remains,, strong chance of re rating in the short term..

 

[philly]

Very quiet thread, my view on txn remains,, strong chance of re rating in the short term..

Hi Agentm, with fraccing not due until March I think that this thread will remain quiet and the SP will stay around current levels ie 67-68 cents. It is entitled to get a re rating prior to fraccing as the flow rates of over 1200 boe potentially from 2 wells are well above that achieved by others in the zone. I still don't think that the market has acknowledged this fact and I was hoping for a bit more of a run on the SP. Having seen what others have achieved in the Sugarloaf I am confident that TXN holders will all do well. I am a holder.

 

[Ramblin Round]

I too feel strongly about Texon from what I see happening here in Texas.

 

[estseon]

Hi Agentm, with fraccing not due until March I think that this thread will remain quiet and the SP will stay around current levels ie 67-68 cents. It is entitled to get a re rating prior to fraccing as the flow rates of over 1200 boe potentially from 2 wells are well above that achieved by others in the zone. I still don't think that the market has acknowledged this fact and I was hoping for a bit more of a run on the SP. Having seen what others have achieved in the Sugarloaf I am confident that TXN holders will all do well. I am a holder.

"The Olmos - profitable but forgotten by the market" said a broker some time. Have they not some drilling planned in Q1?

The EFS is becoming big news - TXN could get swept along with the tide. I'd be surprised if the price flat-lines for the next 2-3 months.

 

[philly]

"The Olmos - profitable but forgotten by the market" said a broker some time. Have they not some drilling planned in Q1?

The EFS is becoming big news - TXN could get swept along with the tide. I'd be surprised if the price flat-lines for the next 2-3 months.

Ah estseon, the Olmos. From TXN's website
The Leighton field was discovered in August 2008 with the drilling of the Peeler #1 well. Since then the company has drilled 6 more wells in the field with 100% success. The initial production rates of these wells varied between 300 and 500boepd. There remain up to 28 additional drill sites in the area. One to two wells a quarter are planned following the drilling of three wells in Q1, 2011. The Olmos reservoir is some 520m above the Eagle Ford shale on the same lease.

Guess I got caught up in the EFS frenzy It looks like 2011 will be a very busy year for TXN. They have planned 9 wells to be drilled in the Olmos field + 2 wells to be fracced in the EF + many other prospects in both zones. Hopefully they will maintain their success rate and the SP will surge ahead. I am a holder

 

[Agentm]

Happy new year from KL

I believe a few new wells are commencing this month, which proves up plenty more olmos reserves..

I gather the landowners will be swimming in cash.. The efs first paycheck will be bomb IMHO..

Have a fantastic 2011 texon. And to all texon investors, a prosporous 2011 to all..

Cheers

 

[estseon]

Happy new year from KL

I believe a few new wells are commencing this month, which proves up plenty more olmos reserves..

I gather the landowners will be swimming in cash.. The efs first paycheck will be bomb IMHO..

Have a fantastic 2011 texon. And to all texon investors, a prosporous 2011 to all..

Cheers

Happy New Year to one and all from this time zone.

Special wishes to those inundated in Queensland.

Fingers crossed for Texas - it seems to have tornadoes one side and blizzards on the other. Locally, we've had the coldest December since records began. There's some really unusual weather going around.

 

[Agentm]

My view on oil is it will now rise to $130 in the coming 6 months. I am considering adding when I am able to..

With madden reserves due in the short term, a second efs well to flow, and many more olmos sands wells.. IMHO some cheap prices are there for txn right now.

Unusual weather for sure but.... Unusually low sp is always nice when adding.

make hay whilst the sun shines IMHO

 

[Agentm]

just you and me left in txn now estseon..

real quiet in the trade there.. great prices still.. this will be a quiet little winner in 2011 for me..

 

[tech/a]

just you and me left in txn now estseon..

real quiet in the trade there.. great prices still.. this will be a quiet little winner in 2011 for me..

Like this from a tech view

 

[philly]

just you and me left in txn now estseon..

real quiet in the trade there.. great prices still.. this will be a quiet little winner in 2011 for me..

Oh Agentm, don't forget me, I hold as well
I agree that 2011 will be a big year.
As estseon reminded me recently the "forgotten" Olmos are providing a steady income stream. TXN has already planned 9 wells to be drilled in the Olmos field and the 2 EFS wells are to be fracced in March. There is also potential for more wells as there many other prospects in both zones. Hopefully the SP will surge ahead.