Texon Petroleum Limited (ASX:TXN) First Mosman-Rockingham Well Encounters Oil And Gas Shows

Brisbane, Mar 26, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its first Mosman-Rockingham well, (MR#1 or Hoskins Unit #1), has encountered oil and gas shows in the Olmos reservoir at the expected depth of 2,806 metres (9,205 feet). The oil and gas shows in MR#1 are of the same type as and are over a thickness similar to the Olmos reservoir at Leighton where Texon has 5 Olmos producing wells.

The well is currently at a depth of 2,830 metres (9,285 feet) with a plan to drill ahead to a total depth of 3,490 metres (11,450 feet).

The Eagle Ford Shale is expected to be intersected at about 3,354 metres (11,000 feet).

The well should reach its total depth in the next 5-7 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 Mosman-Rockingham similar to the Eagle Ford Shale in Tyler Ranch #4 at Leighton and in other nearby wells which have tested oil and gas from the Eagle Ford Shale (please refer to Texon's release dated 15 March 2010).

Texon has a 95% working interest (71.25% net revenue interest) in the Mosman-Rockingham Project.

Please refer to Texon's website for announcements by the Company: http://www.texonpetroleum.com.au

Oil and gas futures Prices (Source: NYMEX April 2010 contracts)

Oil: US$ 81.06/bbl
Gas: US$ 3.97/mmbtu
(approx. US$4.50/mcf for all Texon gas - including US$5.50/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)