The Roundhouse prospect, comprising 28.48 gross square kilometres of Cotton Valley Lime reservoir potential in the Navarro County, will continue to be operated by private US company, Tanos Energy Holding. Tanos will also retain a 50% working interest in the project.
Tanos, which has retained a 50% working interest, planned to drill an initial horizontal test well on the Roundhouse prospect during the first quarter of 2013.
Texon believed the prospect had an overall potential of 10 million to 12 million barrels of oil equivalent, estimating that 200,000 to 300,000 barrels could be recovered from each well.
The Cotton Valley Lime play in east Texas is a naturally occurring fracture oil reservoir in the early stages of development as a new horizontal drilling play.
The reservoir had been drilled previously and produced through natural fractures in the adjacent Cheneyboro field through non-stimulated vertical wells.
Texon said the Cheneyboro field had yielded more than three million barrels of oil to date.