Talon Petroleum (ASX:TPD) has been granted permission for the first horizontal Olmos well at its Mosman Rockingham Olmos project in McMullen County, Texas.
The well is expected to spud in late August-September after drilling contractor Orion Drilling completes two wells it currently has scheduled.
With over 3,800 gross acres at the project, there is potential for an additional 14 horizontal well locations where it has 100% working interest.
Based on nearby analog horizontal well performance, the gross contingent resource potential (1C) is estimated to be in a range of potential outcomes of 235,000 to 327,000 barrels of oil equivalent per well.
A letter of intent has been negotiated with an offset operator to evaluate the commercial outcome of joining acreage to increase the number of potential horizontal wells and to place them in a more favourable position relative to the orientation of the well bore and the resulting optimal direction of the frac plane.
Its Scherer-2 well at the Angourie Prospect in Jackson County, Texas, had initially tested at 800,000 cubic feet per day and an unmeasured amount of condensate.
The well is expected to start generating revenue by August 2014.
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