Texon Petroleum Limited (ASX:TXN) Two Olmos Wells And Two Yegua Wells To Be Drilled

Brisbane, July 23, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) plans to drill two Olmos Wells And two Yegua Wells.

Olmos - 2 wells (Texon 50% WI - 37.5% NRI)

The seventh (7th) Leighton Olmos reservoir development well (Tyler Ranch #6) is scheduled to begin drilling next week.

The well has a planned total depth of 2,743 metres (9,000 feet) and will take about 15 days to drill. The well will penetrate the Olmos reservoir at approximately 2,706 metres (8,880 feet), which is the same oil and gas reservoir as is producing in the first six (6) Leighton wells (Peeler #1, Tyler Ranch #1, #2, #3, #4 and #5). Tyler Ranch #6 is located 366 metres west of Tyler Ranch #3.

If the wire line electric logs indicate producible oil and gas in the Olmos reservoir, the well will immediately be completed as the Company's seventh (7th) oil and gas producer from this zone in the Leighton Project.

The next Leighton Olmos development well is planned for Q1, 2011.

Yegua - 2 wells (Texon 32.4% WI, 24.3% NRI)

Texon will participate in the drilling of two Yegua wells which will test Texon's Lennox and Nambucca prospects. The wells are on low risk prospects on trend with Texon's Avoca gas producer. Avoca (Texon 95% WI, 71.25% NRI) is currently producing at about 900mcfgpd and 5 bopd. Texon has retained a 32.4% WI (24.3% NRI) for minor cost exposure after entering into a drilling joint venture with US Independent Bright & Company who will be operating the wells.

Drilling is scheduled to commence in August.

Both wells have a total depth of 2,073 metres (6,800 feet) and will take about 10 days to drill. If successful, the wells will be in production as soon as possible after the completion of drilling.

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$79.08/bbl
- Gas: US$4.64/mmbtu (approx. US$5.30/mcf for all Texon gas - including US$6.50/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)