Texon Petroleum Ltd

Texon Petroleum Ltd (ASX:TXN) are pleased to provide the 31 December 2012 Quarterly Report.

Texon Petroleum Ltd (ASX:TXN) advises that the Demerger Scheme Booklet, Acquisition Scheme Booklet and accompanying proxy forms which were released to ASX on Tuesday, 22 January 2013 have now been mailed to Texon shareholders.

On 13 November 2012, the Board of Texon Petroleum Limited (ASX:TXN) announced two separate proposals designed to provide value for Texon shareholders. They are: a proposal to demerge by scheme of arrangement and list a Texon subsidiary, Talon Petroleum Limited (Talon), which would hold Texon's non Eagle Ford Shale (EFS) assets. proposal for Sundance Energy (ASX:SEA) to acquire by scheme of arrangement, after the implementation of the Demerger Scheme, all Texon shares in return for one new Sundance share for every two Texon Shares held at the record date.

The Texon-Quintanilla SMEF 1H (Texon Petroleum's(ASX:TXN) 7th Eagle Ford well) has tested at rates of 1,503 bopd and 1,270 mcfgpd (1,705 boepd) on a 22/64th choke with flowing tubing pressure of 2,665 psi.

The Texon-Hoskins 3H (Texon Petroleum's (ASX:TXN) 6th Eagle Ford well) has tested at rates of 1,751 bopd and 1,537 mcfgpd (2,007 boepd) on a 22/64" choke with flowing tubing pressure of 3201 psi. The well spudded on 21 October 2012 and drilled to 17,156' MD (11,267' TVD) total depth. It was fracced with 24 stages - a correction from the previously announced 22 stages.

Texon Petroleum Ltd (ASX:TXN) report that the recently drilled and cased Texon-Hoskins EFS #3H well (Texon's 6th Eagle Ford well) has been fracture stimulated for production testing. Twenty two (22) frac stages have been successfully pumped in the 5,592' horizontal lateral.

As foreshadowed at the Texon Petroleum Ltd (ASX:TXN) EGM on 31 August 2012, senior secured short term funding of $25m at an interest rate of 20% pa payable six monthly has been finalised. The funding, which is for a period of 12 months has been provided by a consortium of lenders who were issued non-convertible loan notes as security by the Company.

Texon Petroleum Ltd (ASX:TXN) previously announced in the 30 November ASX release, Hoskins #4H, the eighth Texon Eagle Ford well commenced drilling operations on 6 December 2012. The Hoskins #4H well, a lease obligation well is planned for a lateral length of 7420 ft. at a measured depth of 18,800 ft, at a true vertical depth of 11,340 ft. Fraccing operations are planned to begin in late January 2013 pending crew and equipment availability.

Texon Petroleum Ltd's (ASX:TXN) Hoskins EFS #3H well was drilled to 17,156 ft measured depth at a true vertical depth of 11,267 ft after which production casing was installed to total depth. The well was successfully drilled in the EFS target zone for a lateral length of 5,595 ft. The pre-drill estimate of 18 frac stages has been modified to the actual hole conditions and it is now estimated that there may be as many as 25 frac stages in the well.

Texon Petroleum Ltd (ASX:TXN) are pleased to provide a presentation regarding the proposed demerger of Talon Petroleum Ltd ("Talon") * and the merger of Texon Petroleum with Sundance Energy Australia Limited.