Texon Petroleum Limited (ASX:TXN) Updates On 60 Day Production Result Of First Eagle Ford Well

Brisbane, Feb 15, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its first Eagle Ford Well, Tyler Ranch EFS #1H, has produced 31,099 bo + 40,987 mcfg over 60 days on a restricted choke. This represents an average daily oil equivalent rate (without taking into account the high calorific value of the gas) of 632 boepd (518 bopd + 683 mcfgpd) converting gas on the basis that 6 mcf of gas equals 1 barrel of oil equivalent.

With a Henry Hub gas price of US$4/mmbtu, the Company receives approximately US$6.80/mcf due to the high heating value of the Eagle Ford gas and the presence of natural gas liquids providing a valuable uplift in revenue in addition to the oil revenue.

The second period of 30 days averaged 548 boepd (443 bopd + 631 mcfgpd).

During the last 15 days of the 60 day test time, there were several days when the minimum temperature was below freezing. This may have affected production on those days. Also, there were 5 days where the gas pipeline inlet compressor shut down resulting in reduced oil production (av. 230 bopd on those days).

With warmer weather and the compressor now functioning properly, the rate is back up to some 650 boepd (550 bopd + 601 mcfgpd).

Texon has a working interest in the well of 82% and a beneficial interest (NRI) of 61.6%.

Oil and gas futures prices (Source: NYMEX March 2011 contracts)

- Oil: US$85.60/bbl

- Gas: US$4.0/mmbtu (approx. US$6.0/mcf for all Texon gas - including US$6.80/mcf for Olmos and Eagle Ford gas which currently make up 65% of Texon's gas production)

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) http://www.texonpetroleum.com.au