Texon Petroleum Limited (ASX:TXN) Extends Leighton Leaseholding With Additional Eagle Ford And Olmos Potential 4 Mmboe

Brisbane, April 15, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that it has secured a 100% Working Interest (WI) in a 320 acre lease adjoining the northern boundary of Leighton.

The new lease contains two deep wells drilled in 1984 and 2000 respectively. Wireline logs indicate 131ft of potential oil and gas pay in the Eagle Ford Shale, an additional 50ft of potential pay in the overlying Lower Austin Chalk and 5ft in the Olmos reservoir.

The wells are located 1.5 miles north of Texon's Leighton Field Tyler Ranch #4 well, which logged 142ft of Eagle Ford Shale. One of the wells on the new lease is producing a small amount of gas from the Edwards Limestone which is below the Eagle Ford Shale.

Eagle Ford Shale ("EFS") and Lower Austin Chalk (combined 181ft)

Both deep wells on the new lease confirm the presence of the EFS at the northern end of the Leighton Field with the combined pay interval of EFS and lower Austin Chalk being slightly thicker than the 142ft in the Leighton TR#4 well. The new lease adds four (4) potential EFS well locations to the Company's portfolio with a potential of 3.6 mmboe as to the Company's current working interest.

Olmos

The Olmos is only 5ft thick in both deep wells, but correlation with 3D seismic suggests that there are two or three 40 acre well locations just to the east in the new lease where 10-20ft of Olmos is predicted with a combined potential of some 300-400,000boe as to Texon's current WI. A well with 15ft of Olmos in the nearby AWP field has produced a cumulative 147,000 boe.

Significance to Texon

The new lease brings the Company's gross EFS lease position to 4,869 acres and the Olmos to 3,100 acres - together representing some 8,000 reservoir acres to Texon.

The old deep wells on the new lease confirm the presence of the EFS on the northern edge of Leighton with the EFS having a potential to Texon of 3.6 mmboe in the new leases.

We are assessing how to make best use of the two existing wells. It may be possible to reperforate the producing Edwards zone in one of the wells to enhance production from this well.

The other well may be able to be re-entered and used as the start of a horizontal EFS well on this lease. This would save the cost of drilling the vertical part of a new well. A successful horizontal EFS well here - at the northern end of Leighton - would point to the likely success of EFS wells in Leighton where the vertical well, TR#4, has already established 142ft of good quality EFS potential pay.

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

Oil: US$ 85.92/bbl
Gas: US$ 4.19/mmbtu
(approx. US$4.80/mcf for all Texon gas - including US$5.80/mcf for Leighton Olmos gas)

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

http://www.abnnewswire.net/media/en/docs/62635-ASX-TXN-219943.pdf

Contact

Dr John Armstrong Chairman Tel: +61-7-3211-1122 (Brisbane) Mr David Mason Chief Executive Officer Tel: +61-7-3211-1122 (Brisbane) TEL: +1-281-419-4976 (Houston) (Houston is 15 hours behind Aust. Eastern Standard time)