Operations
McMullen County: Eagle Ford - Olmos
Jackson County: Yegua
Eagle Ford Shale (2 wells producing)
The Company has two producing Eagle Ford wells that commenced production in December, 2010 and April, 2011in which the Company has a working Interest of 82% and 100% respectively. Initial production rates were 1,200 bopd and 1,105 bopd respectively. Drilling of its third Eagle Ford well has started and will be immediately followed by a fourth Eagle Ford well. Both wells are scheduled to be fracture stimulated in August, 2011.
Texon has assembled a position of approximately 5,900 nett acres in one of the sweet spots of this oil rich resource play. The Eagle Ford shale is an unconventional oil /condensate rich reservoir located at a depth of approximately 10,500 to 11,500 feet and ranges in thickness from 137feet to 143 feet. Texon has some 70 potential drilling locations with an estimated resource potential of 31mmboe as to WI (23mmbo as to NRI).
Three nearby Eagle Ford wells had initial rates of 775, 1,100 and 1,254bopd respectively. Additional wells are drilling or planned by other operators in the area. Together with the results of the Company’s Eagle Ford wells the value of the Eagle Ford in the LMRS area is starting to be realized.
Olmos(11 wells producing)
The Company has 10 producing Olmos wells in the Leighton field and one additional Olmos well in production in the Rockingham area.
The Olmos reservoir overlies Texon’s Eagle Ford reservoir in McMullen County at a depth of about 8,800ft. The Olmos is an oil and gas rich formation, where the gas has a high heating value and a high natural gas liquids content attracting premium pricing.
The 11th Leighton Olmos production well is currently drilling.
There remain 24 potential locations to drill in the Leighton/Sutton area.
Yegua (3 wells producing)
Texon has 3 wells producing in Jackson County from the Yegua formation.
A fourth well Iluka#1 is planned to commence drilling in July.