2010-08-31-2010-08-27-2010-08-27

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Description

Amended participation agreement to earn 7.939% working interest in 1,651 acres, including 131 net acres in the Eagle Ford shale.

Perth, Australia-based E&P company Global Petroleum Ltd. has amended its participation agreement with Texon Petroleum Ltd. (Australia: TXN) to expand the contract area of the Leighton prospect in South Texas.

The Leighton asset will be expanded to 1,651 acres for all depths beneath the Olmos formation by cross-assigning Global Petroleum's 15% working interest in approximately 874 acres with approximately 777 acres, in which Texon holds an average 96% working interest.

Global will now own an undivided 7.939% working interest across the expanded area, which includes 131 net acres in the Eagle Ford shale.

Additionally, Texon has advised that the rig for the joint-venture's first Leighton Eagle Ford horizontal well is scheduled to arrive in mid-September. The first well will drill vertically to 10,500 feet and then laterally to 4,500 feet.

Global Petroleum believes the amendment will enable a more efficient development of the Eagle Ford reservoir with horizontal wells.

Australia-based Texon Petroleum holds oil and gas assets in the South Texas Eagle Ford.