Texon Petroleum Limited (ASX:TXN) Successful Wilcox Oil Shows At Ninth Leighton Olmos Well

Brisbane, Feb 23, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that Peeler #2 ("P#2") has reached its total depth of 2,774 metres (9,100 feet). This is the ninth well in the Leighton oil and gas field - all of which have been successful.

The Olmos in P#2 has similar reservoir characteristics to the Olmos in the previous eight (8) Leighton wells.

Oil and gas shows were also encountered in shallower Wilcox reservoirs. These shows will be evaluated using high resolution log analyses techniques, combined with side wall cores and pressure data to assess their importance to the Company.

It is now planned to run production casing in the well after which the Olmos will be fracture stimulated in March and then the well will be connected for oil and gas production.

The rig will now move to Tyler Ranch #8, the third well in the current three well back to back Olmos production drilling program of Leighton.

Texon has a 50% working interest (37.5% net revenue interest) in Peeler #2.

Oil and gas futures prices (Source: NYMEX March 2011 contracts)
Oil: US$94.06/bbl
Gas: US$3.86/mmbtu (approx. US$5.80/mcf for all Texon gas - including US$6.60/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