Texon Petroleum Limited (ASX:TXN) Fifth Leighton Well Encounters Oil And Gas Shows In Olmos

Brisbane, Oct 20, 2009 AEST (ABN Newswire) - 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).

The well is currently drilling ahead at a depth of 2,835 metres (9,300 feet) to a planned total depth of 3,444 metres (11,300 feet).

The Eagle Ford Shale is expected to be intersected at about 3,230 metres (10,600 feet).

The well should reach its total depth in the next few days at which time wire line logs will be recorded.

If the logs confirm producible Olmos reservoir then the well will be completed for production from the Olmos. Data from the logs will also enable an assessment of whether the Eagle Ford Shale could contain producible oil and gas at Leighton.

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%).

Oil and gas futures prices [Source: NYMEX November 2009 contract]

Oil: US$79.53/bblGas: US$4.87/mmbtu

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 (Houston is 15 hours behind Aust Eastern Standard time)