Texon Petroleum Limited (ASX:TXN) Lennox Well Flows Gas And Nambucca Well Encountered Oil And Gas Shows

Brisbane, Oct 18, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that the recently drilled Lennox well has tested gas at the gross rate of 921 mcfgpd from the Yegua reservoir through a 10/64" choke at 2,502 psi.

The well encountered a 13m (44ft) thick gas zone some 5m thicker than the 8m (25ft) zone in the Company's nearby Avoca well. Avoca has been producing for over two years at between 800 and 1,000 mcfgpd plus 3-5 bopd. Texon has a 95% WI (71.25% NRI) in Avoca.

Texon has a 32.3% WI (24.2% NRI) in Lennox.

Lennox will be connected to a gas sales pipeline in the next 2-3 weeks.

Over the weekend drilling was also completed on the Nambucca prospect located some 480m (1,575ft) North East of Lennox. The well encountered 21m (68ft) of oil and gas shows in the target Yegua Sand.

Production testing of Nambucca is expected to commence in 5-7 days and then will be connected to oil tanks and the same gas sales pipeline as Lennox in the next 2-3 weeks.

Texon has a 32.5% WI (24.4% NRI) in Nambucca.
Please refer to Texon's website for announcements by the Company: http://www.texonpetroleum.com.au

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

- Oil: US$81.25/bbl

- Gas: US$3.54/mmbtu (approx. US$4.60/mcf for all Texon gas - including US$5.60/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)