Texon Petroleum Limited (ASX:TXN) Proved And Probable Reserves Increase to 3.0 Million BOE
Texon Petroleum Limited (ASX:TXN) Proved And Probable Reserves Increase to 3.0 Million BOE

Brisbane, Mar 22, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (googlechartASX:TXN) 2009 year end proved and probable reserves are respectively 1.9 mmboe and 1.1 mmboe - a total of 3.0 mmboe as to the Company's current working interests*.

From mid year 2009, this is an increase of 40% and from year end 2008, the increase is 200%.

Most of the Company's 2009 year end reserves are in the Leighton Field where there are five (5) producing wells, fifteen (15) Proved undeveloped well locations and eleven (11) Probable well locations.

The Company plans to drill the 6th Leighton well Tyler Ranch #5 (one of the above Proved undeveloped locations) immediately following the drilling of its MR#1 well which is expected to be completed in about 3 weeks.

Together with the Commonwealth Bank of Australia, we are investigating financing options to facilitate the drilling of the remaining twenty five (25) Proved and Probable well locations at Leighton - including the possibility of horizontal drilling which has the potential of higher productivity per investment dollar compared with vertical wells.

The 2009 year end reserves information was compiled by Delilah B Hainey of Hainey & Hainey, a reservoir consultant to the Company. HJ Gruy and Associates, Inc., Houston, Texas assisted in the reserves report by providing an independent audit of the proved and probable reserves of the Leighton oil and gas field which constitutes 97% of the Company's proved and probable reserves. Both Delilah B Hainey and HJ Gruy and Associates are qualified in accordance with ASX Listing Rule 5.11 and Delilah B Hainey has consented to the form and context of the reserves and HJ Gruy and Associates has consented to the inclusion of the audited Leighton reserves.

Oil and gas futures Prices (Source: NYMEX April 2010 contracts)

Oil: US$ 81.07/bbl
Gas: US$ 4.38/mmbtu
(approx. US$5.00/mcf for all Texon gas - including US$6.00/mcf for Leighton Olmos gas)

* Overall Texon's beneficial interest (NRI) is 75% of the Working Interest.

Contact

Dr. John Armstrong
Chairman
Brisbane: TEL: +61-7-3211-1122
Or
Mr. David Mason
Chief Executive Officer
Brisbane: TEL: +61-7-3211-1122

Houston: TEL: +1-281-419-4976
(Houston is 16 hours behind Aust.
Eastern Standard time)



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