Talon Petroleum (ASX:TPD) has commenced the first horizontal test well for its Mosman Rockingham Olmos Project in McMullen County, South Texas.
There is potential for an additional 14 horizontal well locations at the project, each of which could hold gross contingent resources of between 235,000 and 327,000 barrels of oil equivalent based on nearby analog horizontal well performance.
The Quintanilla OL 1H well is scheduled to drill to a proposed measured depth of 13,600 feet in about two weeks.
Fraccing operations in the approximate 4,300 foot lateral section of the well are anticipated to occur after the well is drilled and casing is run.
Initial planning for as many as 14-frac stages will be evaluated prior to final pumping. Frac timing will be driven by the availability of high quality frac companies and crews.
Talon expects to minimise its 10% share of costs to about US$550,000 in the 199 acre Quintanilla drill site lease, while retaining a strategic 100% in the remaining 3,600 acres of the project.
Talon is looking to expand its MR Olmos position to increase the number of potential wells.
A letter of intent has been negotiated with an offset operator to evaluate the commercial outcome of joining acreage to increase the program area to include approximately 25 wells.
The company is raising up to $1.12 million through a fully-underwritten one for one non-renounceable pro-rata entitlement offer of shares priced at $0.011 each.
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