Texon Petroleum Limited (ASX:TXN) Mosman-Rockingham #1 Test Flows At Initial Rate Of 111 BOEPD

Brisbane, April 30, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its first "Olmos" well on Mosman-Rockingham has flowed at an initial rate of 111 boepd (comprising 100 bopd and 65 mcf of gas per day) through a 8/64" choke.

MR#1 will now be connected for Olmos oil and gas production with first sales expected in the next few days. The time from well spud to revenue earning production will be about 50 days.

The attached map shows the location of MR#1 in the Mosman-Rockingham leases (see link at the bottom of release).

Olmos

The numerous wells to the east of Mosman-Rockingham are Olmos producing wells in the AWP oil and gas field.

There are several other wells besides MR#1 on or in close proximity to Mosman-Rockingham where Olmos pay is indicated to be present from wireline electric logs (i.e. A, B, C, D, E).

Wells A & B have respectively produced 147,000 and 137,000 boe, but wells C, D & E have not been produced.

These wells together with MR#1 indicate the likely presence of the Olmos reservoir in Mosman-Rockingham. Seismic data suggest that the Olmos is more likely to be present in the eastern half of the Mosman and the eastern and south-eastern parts of Rockingham.

On the basis that each Olmos well will drain 40 acres of the Olmos reservoir then there could be another 51 Olmos locations in Mosman-Rockingham, representing a potential of some 6.6 million boe as to Texon's overall 96.6% Working Interest.

Eagle Ford

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 million boe as to the Company current average Working Interest of 96.6% in the Mosman-Rockingham leases.

Significance for Texon

The MR#1 results together with information from surrounding wells where the Olmos and Eagle Ford are present, are indicative of the likelihood of both reservoirs being present and productive of oil and gas at Mosman-Rockingham.

The combined Olmos and Eagle Ford overall resource potential in Mosman-Rockingham as to Texon's current 96.6% Working Interest is some 42 million boe.

The Company now plans to investigate the drilling of one or two more Mosman-Rockingham Olmos wells. One or both wells would be deepened to the Eagle Ford Shale to continue to add to our knowledge of the Eagle Ford in Mosman-Rockingham.

Also, we will investigate the feasibility of drilling a 96.6% WI Eagle Ford horizontal well in Mosman-Rockingham beginning the well by the end of this year.

Texon CEO Dave Mason said:

"MR#1 is a positive result for the Company.

The Olmos flow from MR#1, together with evidence of the Olmos in the five (5) wells shown on the map indicates that Mosman-Rockingham could be another Olmos project for the Company. Texon's Mosman-Rockingham Olmos potential could be twice the size of the Company's Olmos position at Leighton.

The presence of the Eagle Ford Shale in MR#1 together with nearby Eagle Ford activity by other operators suggests that there is a high likelihood of Mosman-Rockingham also being an Eagle Ford Shale project with potential as to Texon's current WI of 35 mmboe.

Combined, the Mosman-Rockingham Olmos and Eagle Ford Shale projects, together with the Olmos and Eagle Ford Shale in Leighton should provide a very sound growth platform for the Company.

At Texon's current Working Interests (and excluding the Company's other gas producing wells and prospects), the Leighton and Mosman-Rockingham Olmos and Eagle Ford projects amount to 60 mmboe of resource potential to the Company."

Contact

Dr. John Armstrong Chairman Brisbane: TEL: +61-7-3211-1122 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)