Texon Petroleum Limited (ASX:TXN) To Test 4 Wells In March 2011
Texon Petroleum Limited (ASX:TXN) To Test 4 Wells In March 2011

Brisbane, Mar 11, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (googlechartASX:TXN) is to test 4 wells in March 2011.

Eagle Ford

Texon advises that the fracture testing of its second Eagle Ford well (Teal EFS #1H) has been slightly delayed and is now scheduled to begin next week.

Texon has a 100% WI (75% NRI) in this well.

Olmos

Upon completion of the above project, the contractor will fracture stimulate the three (3) Olmos production wells referred to in the Company's release of 19th January this year. These wells have now been drilled and the Olmos oil reservoir has been encountered as predicted in each well.

The frac work will take approx one (1) day per well. The wells will be placed in production when the fracture stimulation and testing are completed.

Texon has an average 70% WI (52.5% NRI) in these 3 wells.

Production

During the second quarter of this year, it is expected that the above four (4) wells, if successful will contribute a combined average of 600 boepd to the Company's production.

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

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

- Oil: US$102.57/bbl
- Gas: US$3.83/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



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