Texon Petroleum Limited (ASX:TXN) Share Purchase Plan opens

Brisbane, Mar 4, 2011 AEST (ABN Newswire) - Texon Petroleum Ltd (ASX:TXN) announces that its Share Purchase Plan (SPP) has opened for eligible shareholders in Australia and New Zealand to subscribe for up to A$15,000 worth of shares in the Company at an issue price of 65 cents. The offer will close at 5PM (Brisbane time) on Wednesday 6 April 2011. The issue price is the same as the recent successful placement to sophisticated and institutional investors which raised A$15.7m and represents a discount of 14.7% to the average of the closing prices of Texon's shares over the last five trading days before the announcement made on 23 February 2011. RBS Morgans is the lead manager for the SPP and is underwriting the offer up to A$10.5m.

The record date for the SPP was Tuesday 22 February 2011.

The offer which is attached to this release will be mailed on Monday 7 March 2011 to shareholders who were on the share register at 7PM Brisbane time, Tuesday 22 February 2011, and contains the relevant information that shareholders should consider including details on how to apply.

The funds from the SPP together with the A$15.7m placement funds will be used to fund the following work programme:

Work Programme

The funds will primarily be used to drill, frac and test a fourth Eagle Ford well. The Company's third Eagle Ford well will be funded from existing cash and cashflow. These wells are scheduled for drilling in May and June and fraccing and testing in July. The raising will also fund the acquisition of 1,140 acres of Eagle Ford prospective leases near the Company's Leighton/Mosman/Rockingham/Sutton ("LMRS") leases (refer Company release dated 23 February 2011) as well as 3D seismic over these new leases.

The funds will be used to frac and test one and possibly two existing vertical wells on the LMRS where the Eagle Ford is present.

Also, it is planned to drill and test the Wilcox oil shows referred to in the Company's release of 21 February 2011 in two vertical wells, one in the Leighton area and one on Mosman.

The Company has embarked on an Expanded Mapping Project to more comprehensively investigate the 180 3D seismic surveys for prospects for drilling in 2012.

In addition to the above projects the Company plans, from existing cash and cashflow during 2011, to:

- Frac and test its second Eagle Ford well in March;

- Prepare and adopt a plan to monetize and develop its Eagle Ford lease holdings;

- Drill seven (7) Leighton Olmos development wells;

- Conduct 3D seismic over its Mosman-Rockingham leases to enable more thorough mapping of the Eagle Ford Olmos, Wilcox and Pearsall targets;

- Drill the Coolangatta and Scarborough prospects in Q2 and Q3 respectively. These projects have a combined upside potential of 34 mmboe as to the Company's Working Interest.

Further details can be found in the offer document (attached, please refer to the link below).
http://www.abnnewswire.net/media/en/docs/229836.pdf

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