Texon Petroleum Limited (ASX:TXN) Fourth Leighton Well Producing Good Oil And Gas In Olmos

Brisbane, Sep 18, 2009 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that the fourth well on its Leighton project, Tyler Ranch #3, has reached a total depth of 2,743 metres (9,000 feet) after intersecting oil and gas shows in the target Olmos reservoir. The Olmos reservoir properties as indicated by wireline logs in Tyler Ranch #3 are similar to the first three Leighton production wells (Peeler #1, Tyler Ranch #1, and Tyler Ranch #2) all 3 of which are producing oil and gas from the Olmos.

Production casing will now be run in preparation to fracture stimulate and test Tyler Ranch #3 with separate testing equipment. If this test is successful, the well will be placed on production as soon as testing has been concluded, possibly by the end of September.

A larger rig has been contracted for Tyler Ranch #4 which is scheduled to begin drilling in early October to target both the Olmos Reservoir and deeper Eagle Ford Shale objective. The significant upside potential to Texon of the Eagle Ford Shale has been outlined in an earlier release dated 11 September, 2009.

Texon has a 70% working interest (52.5% net revenue interest) in the Leighton Project with joint venture parties Global Petroleum Limited (15%) and Excellong, Inc (15%).

Contact

Dr John Armstrong Chairman Brisbane: +61-7-3211-1122 Mr David Mason Chief Executive Officer Brisbane: +61-7-3211-1122 Houston: +1-281-419-4976