Texon Petroleum Ltd

Texon Petroleum Limited (ASX:TXN) advises that it plans to commence drilling the first Mosman-Rockingham ("MR #1") well in late February. MR #1 lies some 8 kilometres (5 miles) south of the Leighton Field and will be drilled to a depth of 3,414m (11,200ft) to test the Olmos and Eagle Ford reservoirs, both of which are oil and gas productive in nearby wells.

Texon Petroleum Limited's (ASX:TXN) fifth Leighton Olmos production well was deepened below the Olmos to investigate the Eagle Ford Shale. The well had oil and gas shows during drilling the Eagle Ford and there were also oil and gas shows in the Buda and Edwards Limestone (below the Eagle Ford).

Texon Petroleum Limited (ASX:TXN) reports that the fifth Leighton production well (Tyler Ranch #4) has flowed 480boepd from the Olmos reservoir comprising oil and gas at the rates of 410bopd and 425mcfgpd through a 10/64" choke at a flowing surface pressure of 2150psi.

Texon Petroleum Limited (ASX:TXN) advises that it has acquired a further 1,835 acres at 100% working interest over the Rockingham Prospect located 9 kilometers to the south west of Leighton and contiguous with the Mosman Prospect.

Texon Petroleum Limited (ASX:TXN) revenues received for the quarter and the year to date before severance tax and lease operating expenses were US$0.92 million and US$2.90 million, respectively. Cash proceeds from gas and oil sales are received two months after production and sales take place, so that the revenue received for the quarter is from production during May, June and July. The average oil and gas market prices during the quarter were about US$65/barrel and US$3.25/mcf, respectively. Increased production from Leightons 3, 4 and 5 since July will result in increased revenue in the December quarter this year and the first quarter of 2010.

Texon Petroleum Limited (ASX:TXN) advises that the fifth well on its Leighton project, Tyler Ranch #4, has reached a total depth of 3,359 metres (11,019 feet) after intersecting oil and gas shows in the Olmos and Eagle Ford Shale reservoirs.

Texon Petroleum Limited (ASX:TXN) advises that the fifth well on its Leighton project, Tyler Ranch #4, has encountered oil and gas shows in the Olmos reservoir at a depth of 2,701 metres (8,860 feet). The oil and gas shows in Tyler Ranch #4 are over an interval which is similar to the first four Leighton production wells (Peeler #1, Tyler Ranch #1, Tyler Ranch #2 and Tyler Ranch #3).

Texon Petroleum Limited (ASX:TXN) advises that the fifth Leighton well, Tyler Ranch #4, commenced drilling on 10 October 2009. The well has a planned total depth of 3,444 metres (11,300 feet) and will take about 20-25 days to drill. The well will penetrate the Olmos reservoir at approximately 2,703 metres (8,870 feet), which is the same oil and gas reservoir as is producing in the first four Leighton wells.

Texon Petroleum Limited (ASX:TXN) advises that the fourth well on its Leighton Project, Tyler Ranch #3, has begun to flow oil and gas at the gross rate of 500 boepd from the Olmos reservoir comprising 377 bopd and 746 mcf of gas per day through a 12/64 choke, at a flowing pressure at the surface of about 2,600 psi. This flow rate exceeds the initial flow rates of the previous 3 Leighton wells.

Texon Petroleum Limited (ASX:TXN) advises that the Share Purchase Plan (SPP) which was announced on 14 August and closed on 16 September has raised A$5.9m. Shareholders applied for 31,055,454 shares at an issue price of 19 cents which was discounted by 19%. The offer was underwritten by RBS Morgans (formally ABN AMRO Morgans) up to A$2.95m.