By Jason Fittler
TXN is an Australian-based oil and gas Exploration Company with operations located in the Gulf Coast of Texas, USA. The company's key assets include: 7 productive wells; 13 prospects already leased and ready to drill.
Texon’s objective is to expand as a profitable oil and gas producer by initially focusing on the development of the Leighton oil field, in which it now has five wells in production, 14 proved undeveloped locations and 10 probable well locations. It will also test the Mosman and Rockinham prospects where previous drilling indicates the presence of the Olmos reservoir, now producing at Leighton.
It will also evaluate the underlying Eagle Ford shale in the 4,549 acres now leased. Texon intends to farm down other prospects generated under the terms of its exclusive arrangement with Wandoo and Seitel (a seismic-acquisition company).
Texon has access to over 150 3D seismic surveys covering 16,000 square kilometers, and to other surveys acquired by Seitel, extending until 30 April 2014. The 3D seismic surveys are interrogated and the technical characteristics of producing wells are used as analogues to generate prospects in nearby areas. The success rate to date is above 80%.
This is a more speculative stock, but if you are chasing a speculative stock in the energy sector this would be my pick.
PS. For more information on Texon Petroleum (TXN) please call us on 07 4771 4577.