Texon Petroleum Limited (ASX:TXN) Commences Drilling The Mosman-Rockingham Leases Within The Olmos And Eagle Ford Potential

Brisbane, Mar 16, 2010 AEST (ABN Newswire) - Texon Petroleum Ltd (ASX:TXN) advises that the first well on its 3,270 acre Mosman-Rockingham leases - Mosman-Rockingham #1 (MR #1 or Hoskins #1), commenced drilling on 15 March 2010.

MR #1 will be a vertical well to a planned total depth of 3,490 metres (11,450 feet) and will investigate the presence and characteristics of the Olmos and Eagle Ford reservoirs in the Mosman-Rockingham leases.

The Company's Mosman-Rockingham leases are approximately 2 1/2 times the area of Leighton.

Combined resource potential of the Olmos (6.6 mmboe) and the Eagle Ford (35.6 mmboe) as to the Company's current working interest (ca. 100%) in the Mosman-Rockingham leases is 42.2 mmboe.

The initial production rates from the horizontal Olmos and Eagle Wells nearby to Leighton and Mosman-Rockingham are summarised in yesterday's release by the Company.

It is planned to complete the MR #1 for production from the Olmos if it contains producible oil and gas bearing Olmos reservoir.

If MR #1 is successful in both the Olmos and Eagle Ford, this will enhance the likelihood of both reservoirs being present over the Mosman-Rockingham leases. The Company would investigate the applicability of drilling Mosman-Rockingham horizontal Olmos and Eagle Ford wells to access the higher production rates that such wells provide.

MR #1 is expected to take 25 days to drill.

Oil and gas futures Prices (Source: NYMEX April 2010 contracts)Oil: US$ 81.07/bblGas: US$ 4.38/mmbtu (approx. US$5.00/mcf for all Texon gas -                     including US$6.00/mcf for Leighton Olmos gas)

Contact

Dr. John Armstrong Chairman Brisbane: TEL: +61-7-3211-1122 Or Mr. David Mason Chief Executive Officer Brisbane: TEL: +61-7-3211-1122 Houston: TEL: +1-281-419-4976 (Houston is 16 hours behind Aust. Eastern Standard time)