Texon Petroleum has said that the first Eagle Ford well, Tyler Ranch EFS #1H, has produced 19,651 boe (17,814bo and 22,052 mcfg) over 30 days on a restricted choke.
This production is in line with an average daily oil equivalent rate of 655boepd (594bopd and 735mcfgpd).
Texon said that at the current Henry Hub gas price of about $4.50/mmbtu, approximately $7.60/mcf is received for Eagle Ford gas due to its high heating value and including the value of the natural gas liquids.
Gas has been converted to barrels of oil equivalent (boe) on the basis of 12mcf of gas to 1 boe.
As a result, each boe of gas has a sales value of some $90/boe in line with the value of a barrel of oil.
Thus all of the above 19,651boe produced in the first month have the same sales value as barrels of oil.
Global has a 7.939% working interest in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale.