Tyler Ranch #1 is already connected to oil tanks and a gas sales pipeline so that the company will now begin to obtain revenue from the production.
Texon Petroleum has a 70% working interest (52.5% net revenue interest) in the Tyler Ranch #1.
The successful testing of Tyler Ranch #1 together with the first Leighton well (Peeler #1) has established a further nine 40 acre proved undeveloped well locations contiguous with the Peeler and Tyler Ranch wells. Successful drilling of these locations could establish nine more well locations which if successful would bring the total number of Leighton production wells to 20.
Texon Petroleum has begun discussions with petroleum rights owners on additional prospects in the Leighton area that offers similar multi-well development potential if leases can be acquired and drilling is successful.
Texon Petroleum also now plans to investigate the debt funding of drilling several more Leighton production wells in the second half of 2009 with oil and gas production from successful wells to begin early in 2010. If this program is successful, and the number of Leighton area potential well sites is along the lines set out above, then the Leighton production drilling program would most likely continue into 2010, subject of course to satisfactory well production performance and commerciality at prevailing oil and gas prices.
