Texon Petroleum's latest Olmos well came online at 370 barrels of oil equivalent per day. The well is part of Texon's Olmos and Eagle Ford development plans in McMullen County, TX. The Peeler #3 was the 11th well in the Leighton field and all have been successful. This is the second announcement in as many weeks for successful Olmos wells. Swift Energy announced positive results from a horizontal Olmos well just over a week ago.

Texon advises that its recently drilled Peeler #3 (refer to Texon release of 21 July 2011) has begun to flow oil and gas at the gross combined rate of 370 boepd from the Olmos reservoir (comprising 325 bopd and 268 mcfgpd). This is the eleventh well in the Leighton Olmos oil and gas field, all of which have been successful producers. The well will be connected for production to oil tanks and the gas pipeline in the next 2 weeks.

 

This is a good result as the closest three Olmos production wells, Peelers #1 and #2 and Tyler Ranch #5 tested at initial rates of 170 to 445 boepd. P#3 is the northern most well drilled to date in the Leighton field.

This positive result confirms that the productive Olmos reservoir extends across the northern part of the field and that it contains good quality reservoir further de-risking the 24 undrilled Olmos well locations in the field. The Company has an average 50% working interest (37.5% net revenue interest) in the well.