Texon Petroleum Limited (ASX:TXN) Secures Additional 1,140 Acres at Eagle Ford

Brisbane, Feb 23, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that it has secured lease agreements to purchase 1,140 acres near its Leighton / Mosman / Rockingham / Sutton ("LMRS") leases and which are prospective for oil and gas in the Eagle Ford.

One of the leases is contiguous with the Company's LMRS leases where the Company has recently drilled two horizontal Eagle Ford wells. The first of these has been on production for 60 days (please refer to the Company's announcement dated 15 February 2011). The second Eagle Ford well has been drilled and is due to be fracced and tested in March this year.

The other leases are located about 5km to the south east of the LMRS and there are producing Eagle Ford wells nearby.

Texon will have a 95% Working Interest in the new leases.

The addition of these leases takes the Company's Working Interest Eagle Ford lease holding to 5,640 acres, representing a potential of some 29 mmboe to the Company's current Working Interests.

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

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