Texon Petroleum Ltd

Texon Petroleum Limited (ASX:TXN) plans to drill two Olmos Wells And two Yegua Wells.

Texon Petroleum Limited (ASX:TXN) has located a drilling rig for two (2) Eagle Ford wells with an option for a third (3rd) Eagle Ford well.

Texon advises that it has entered into a binding agreement to sell a 20% WI in the Leighton Field Olmos reservoir for US$6.7 Million to a USA based oil and gas company. After the sale, Texon's retained WI in the 1,280 acres of Olmos reservoir at Leighton will average 59%.

Texon Petroleum Limited (ASX:TXN) announces that it has successfully completed a placement of 40.6 million shares to sophisticated and institutional investors at an issue price of A$0.35 per share to raise approximately A$14.2million. The price represents a discount of 12.3% to the 5 day average price of the Company's shares traded prior to the Company requesting a trading halt.

Texon Petroleum Limited (ASX:TXN) advises that it has commissioned an independent research report by Peter Strachan which is available from our website at http://www.texonpetroleum.com.au

Texon Petroleum Limited (ASX:TXN) advises that a horizontal Eagle Ford well drilled by Swift Energy Company 1 1/2 miles (2.5km) from Mosman-Rockingham has flowed 1,134 bopd and 1.1 mmcfgpd (1,310 boepd). This is an important well as it indicates that the Eagle Ford Shale ("EFS") in the Leighton-Mosman-Rockingham-Sutton ("LMRS") leases (see attached map) could be oil productive.

Texon Petroleum (ASX:TXN) Quarterly Activities Report For Period Ending 31 March 2010

Texon Petroleum Limited (ASX:TXN) advises that its first "Olmos" well on Mosman-Rockingham has flowed at an initial rate of 111 boepd (comprising 100 bopd and 65 mcf of gas per day) through a 8/64" choke.

Texon Petroleum Limited (ASX:TXN) advises that the sixth well on its Leighton Project, Tyler Ranch #5, has begun to flow oil and gas at the gross rate of 445 BOEPD (Barrels of Oil Equivalent Per Day) from the Olmos reservoir (comprising 420 bopd and 150 mcf of gas per day) through a 8/64" choke.

Texon Petroleum Limited (ASX:TXN) advises that it has farmed out three (3) gas prospects with Yegua and Frio reservoir targets.