Business
Leighton Oil Discovery
Leighton Oil Discovery.
About this update from Geo Exploration Limited
[{"type":"text","content":"\n RNS Number : 0123H Global Petroleum Ltd 30 October 2008 \n \n\n\n\n30 October 2008\n\nLEIGHTON - OIL DISCOVERY\n\nTexon Petroleum Limited (ASX:TXN) have advised that the first well on the Leighton prospect - Peeler #1 has tested oil and gas at an unstablised rate of approximately 400 barrels of oil equivalent per day (boepd) comprising some 250bopd and 900 mcf of gas per day and 90 barrels per day of water through a quarter inch choke at a flowing pressure at the surface of about 1,500psi.\n\nTexon advised that the amount of water being recovered has been steadily dropping throughout the test. The water is from the fracture stimulation procedure that was applied to enhance production from the oil and gas reservoir.\n\nEarly analysis of the oil by Texon indicates that it is a light oil. The gas has a heating value of about 1,350btu/cubic foot, which will achieve a premium sales price, possibly one third above the benchmark Texas gas price.\n\nThe well is already connected to oil tanks and is expected to be connected for gas sales in the next 7-10 days, at which time stabilised flow rate information will be able to be obtained.\n\nOn the basis of these results, Texon is planning to drill a second well and possibly further wells on the Leighton prospect as soon as possible. In regard to the second Leighton well, Global has the option to participate in the well on the same terms as Leighton (Peeler #1). \n\nThe 3D seismic anomaly representing the oil reservoir in the Leighton prospect covers an area of some 600 acres and if the second well is also successful, further drilling will be required to develop the field.\n\nGlobal is earning a 15% WI in Leighton.\n\nGlossary:\n\nbcf: billion cubic feet\nboepd: barrels of oil equivalent per day\nbopd: barrels of oil per day\nbtu: British thermal units\nNRI: Net Revenue Interest\nPSI: Pounds per square inch\nWI: Working Interest\n\nEnquiries:\n\n\n\n\n\nGlobal Petroleum Limited\n\n\nTel\n\n\n +1505 344 2822\n\n\n\n\nMark Savage, Chairman\n\n\nFax\n\n\n +1505 344 2922\n\n\n\n\n\n\n\nEmail\n\n\[email protected]\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nBlue Oar Securities Plc (Nominated Adviser and Broker)\n\n\nTel\n\n\n020 7448 4400\n\n\n\n\nWilliam Vandyk/Jerry Keen\n\n\n\n\n\n \n\n\n\n\n\nThis inform...