Texon Petroleum Limited (ASX:TXN) Two Eagle Ford Wells To Be Drilled

Brisbane, July 22, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) has located a drilling rig for two (2) Eagle Ford wells with an option for a third (3rd) Eagle Ford well.

The first well will be drilled in the Leighton area beginning in September, offsetting an Eagle Ford well which is rumoured to have had an initial production rate of 900 bopd and 1.5mmcfgpd.

Texon's first Eagle Ford well will have a vertical depth of 10,500 feet then a horizontal lateral of 4,500 feet and is expected to take 30 days to drill. It is a low risk well as it will be located beside Texon's Tyler Ranch #4 vertical well which had 142 ft of good quality Eagle Ford with strong oil and gas shows.

Texon has a 70% WI (52.5% NRI) in the well.

Following Texon's first Eagle Ford well, the rig will be released to another operator for one well, returning to drill Texon's second Eagle Ford well in December.

If the first two wells are successful, it is likely that the third optional Eagle Ford well would begin before the end of the first quarter next year.

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

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

- Oil: US$76.45/bbl
- Gas: US$4.52/mmbtu (approx. US$5.20/mcf for all Texon gas - including US$6.30/mcf for Leighton Olmos gas)

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 15 hours behind Aust. Eastern Standard time)