Texon Petroleum Limited (ASX:TXN) Encounters Further Oil And Gas Shows Of 200ft At Mosman-Rockingham #1, Eagle Ford/Buda Limestone

Brisbane, Mar 30, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its first Mosman-Rockingham well, (MR#1 or Hoskins Unit #1), has encountered 200ft of oil and gas shows in the Eagle Ford reservoir and in the underlying Buda Limestone at a depth of 3,404 metres (11,168 feet).

This is in addition to the oil and gas shows from the Olmos reservoir referenced in the Company's release dated 26 March 2010.

During drilling of the Eagle Ford in MR#1, a sheen of oil was observed on the surface of the drilling mud pit. The MR#1 gas shows included methane, ethane, propane and butane.

The oil and gas shows in the Eagle Ford are over a thickness similar to the Eagle Ford reservoir in the Company's Tyler Ranch #4 well at Leighton.

The well has reached its total depth of 3,466 metres (11,370 feet) and is preparing to run wire line logs within the next 48 hours.

The logs will then be analyzed by NuTech Energy Alliance (Eagle Ford/Buda) and OGEC (Olmos) to assess the characteristics of the Eagle Ford and Olmos reservoirs with the results of this work expected to be available early next week.

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 May 2010 contracts)

Oil: US$ 82.47/bbl
Gas: US$ 3.90/mmbtu

(approx. US$4.40/mcf for all Texon gas - including US$5.40/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)