Texon Petroleum Limited (ASX:TXN) Two new Olmos Wells Combined Flow 550 BOEPD

Brisbane, April 7, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that two of its recently drilled 3 Olmos wells on its Leighton Project, (Peeler #2 and Tyler Ranch #8) have begun to flow oil and gas at the gross combined rate of 550 boepd from the Olmos reservoir (comprising 435 bopd and 689 mcf of gas per day).

The Company has an average 65% Working Interest (48.75% net revenue interest) in the wells.

The wells will be connected to oil tanks and the gas pipeline in the next 2 weeks.

The third recently drilled Olmos well (Tyler Ranch #7) has been fracced and is in the process of being tested.

The Company's drilling success rate remains at 100% in the Leighton Olmos reservoir, including the 2 wells referred to above. There are now 9 Olmos producing wells in the field as well as 25 undrilled Olmos production well locations.

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

Oil: US$ 108.84/bbl
Gas: US$ 4.15/mmbtu (approx. US$5.33/mcf for all Texon gas - including US$6.56/mcf for Leighton Eagle Ford and Olmos gas)

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 15 hours behind Aust. Eastern Standard time) http://www.texonpetroleum.com.au