Texon Petroleum Limited (ASX:TXN) Olmos And Eagle Ford Confirmed In Mosman-Rockingham #1 Project

Brisbane, April 6, 2010 AEST (ABN Newswire) - Texon Petroleum Limited's (ASX:TXN) first well (Mosman-Rockingham #1) on its Mosman-Rockingham project, reached a total depth of 3,466 metres (11,370 feet) on 29 March, 2010, after intersecting oil and gas shows in the Olmos and Eagle Ford Shale reservoirs.

There are 157ft of Olmos and Eagle Ford Shale in the well.

Wire line logs have been analysed by Oil & Gas Evaluations and Consulting, LLC (Olmos) and by NuTech Energy Alliance (Eagle Ford / Buda).

Significance

MR#1 is a very important well for Texon. Confirmation of the Olmos and Eagle Ford Shale at MR#1 indicates the likely presence of both reservoirs across the Mosman-Rockingham leases where the Company holds an overall average 96.6% Working Interest (71.45% net revenue interest).

Combined potential to Texon of the Olmos and the Eagle Ford Shale in Mosman-Rockingham at this working interest is some 42.2mmboe.

Location

Results for recent nearby horizontal Olmos and Eagle Ford shale wells are set out in our release of 15 March 2010.

Olmos

The Olmos in MR#1 is similar in thickness to the five (5) Leighton wells which are producing from the Olmos. Production casing will now be run in MR#1 prior to fracture stimulating the Olmos in the next two (2) weeks after which the well will be placed on production.

Olmos potential in our Mosman-Rockingham Project is estimated to be some 6.6 mmboe as to the Company's current average working interest of 96.6% (in the 50% of our Mosman-Rockingham leases where the Olmos is predicted to be present).

Eagle Ford Shale

The Eagle Ford in MR#1 is the same thickness as at Tyler Ranch #4 ("TR#4) with similar porosity, permeability, total organic carbon, and gas saturation. Like the Eagle Ford in TR#4, a high percentage of the Eagle Ford Shale in MR#1 is limestone suggesting that the rock should respond well to fracture stimulation.

Eagle Ford Shale potential in our Mosman-Rockingham Project is estimated to be 35.6 mmboe as to the Company current average working interest of 96.6% in the Mosman-Rockingham leases.

Deeper Targets

There are deeper targets which remain to be drilled below the Eagle Ford at Mosman-Rockingham (and indeed below Leighton also) - and which will be investigated in later wells.

These are the Edwards Limestone which had 27ft of pay in Tyler Ranch #4 at Leighton; and which is oil and gas productive from wells in the vicinity of Leighton-Mosman-Rockingham; and the Pearsall Shale (below the Edwards) which has produced gas at rates up to 6mmcfgpd from wells in other counties.

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

Oil and gas futures prices (Source: NYMEX May 2010 contracts)

Oil: US$ 86.62/bbl
Gas: US$ 4.28/mmbtu
(approx. US$4.90/mcf for all Texon gas - including US$6.00/mcf for Leighton Olmos gas)

For the complete Texon Petroleum announcement including Figures, please click the link below:

http://www.abnnewswire.net/media/en/docs/62557-ASX-TXN-219652.pdf

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)