Texon Petroleum Ltd

Texon Petroleum Limited (ASX:TXN) is pleased to announce that with the Company's planned drilling activity in the Leighton/Mosman/Rockingham/Sutton leases and the increasing Eagle Ford drilling activity anticipated in surrounding areas over the next 12-18 months, Texon entered into a gas purchase agreement with a Texas based company, Laser Midstream.

Texon Petroleum Limited (ASX:TXN) advises that it has finished drilling and casing its second Eagle Ford well. Strong oil and gas shows were observed throughout the 4,500ft of horizontal drilling within the Eagle Ford reservoir similar to the oil and gas shows in the first Eagle Ford well that has just been tested. Production casing has been run in preparation for the fracture stimulation which has been contracted and is expected to begin in March. After this work has been completed, the well will be production tested.

Texon Petroleum Limited (ASX:TXN) advises that its first Eagle Ford well, Tyler Ranch EFS #1H, has flowed 1,267 boepd representing 1,202 bpd of light sweet crude oil and 782 mcfpd of gas with a flowing tubing pressure of 2610 psi through a 16/64" choke. Some of the frac fluid is also still being recovered.

Fracture stimulation and testing of Texon Petroleum Limited's (ASX:TXN) (PINK:TEXOF) first Eagle Ford lateral well (TR EFS #1H) commenced on Thursday 2 December, 2010 (Houston time). The Eagle Ford reservoir has become a premium resource play evidenced by the 657 Eagle Ford drilling permits that have been granted in the first 9 months of 2010, compared with 94 for the whole of 2009.

Texon Petroleum Limited (ASX:TXN) advises that its second Eagle Ford lateral well, Mosman-Rockingham EFS #1H, has drilled vertically to a depth of 3,311m (10,865ft) and has encountered oil and gas shows in the Eagle Ford Shale.

Texon Petroleum Limited (ASX:TXN) advises that it has recently sold 375 mcfgpd, nett to the Company, of non-core Frio dry gas production and 5 Frio prospects for US$286,000. The Company continues to focus its efforts and capital towards the liquids rich Eagle Ford and Olmos reservoirs in McMullen County Texas.

Texon Petroleum Limited's (ASX:TXN) second Eagle Ford horizontal well (MR EFS #1H), located in the Company's Mosman/ Rockingham lease, commenced drilling on 12 November 2010. It is expected that the well will take 35 days to drill. Fracture stimulation and testing of this well are scheduled for January next year. The Company has a 100% Working Interest (75% Net Revenue Interest) in the well.

Texon Petroleum Limited's (ASX:TXN) first Eagle Ford horizontal well (TR EFS #1H) referred to in our release of 25 October is now scheduled to begin fracture stimulation work about the 15th of November, with results anticipated in the second half of November. Texon's second Eagle Ford horizontal well (MR EFS #1H) which was the subject of our announcement on 15 October is now scheduled to begin drilling operations in 7 to 14 days.

Texon Petroleum Limited (ASX:TXN) advises that the recently drilled Nambucca well has tested gas at the gross rate of 442 mcfgpd from the Yegua reservoir through a 10/64" choke at 750 psi.

Texon Petroleum Limited (ASX:TXN) advises that it has finished drilling its first Eagle Ford well (TR EFS #1H). Strong oil and gas shows were observed throughout drilling 4,500ft horizontally within the Eagle Ford reservoir.