TXO Plc said investee company Tasmania Oil & Gas is to start a drilling programme at the Lonnavale seep site within the Mt lloyd structure on licence EL14/2009.

It was proposed a 12-inch pre-collar well was drilled in preparation for the larger three well programme, at the proven still currently active Tasmanites sourced oil seep.

The site, which is only 15 km southeast from the two BHP Exploration fully-cored stratigraphic wells, intersects the full section of the Late Carboniferous Quamby Mudstone.

This section includes the interbedded Tasmanite oil shale, which contains the Tasmanites Algal cyst that was drilled on the North Bank of the Styx River by BHP. Drilling contractors have been contacted and TOG is awaiting formal quotes.

Senergy (GB) Ltd which prepared the recent Competent Persons Report ("CPR") estimated Total Mean Recoverable Prospective Resource (ETMRP Resource) of the Bellevue and Thunderbolt structures within the current EL14/2009 to be 2.7 Trillion Cubic Feet (TCF) of gas or in terms of oil, 508 Million Barrels (0.5 Billion Barrels) of Oil Equivalent (MMBOE).

Tasmania Oil & Gas subsequently engaged Senergy to work on an Economic Evaluation of the Bellevue and Thunderbolt ETMRP Resources, based upon the CPR results, the Net Present Value and Monetary Value figures.

At 9:10am: (LON:TXO) Texas Oil & Gas share price was +0.01p at 0.22p