Texon Petroleum Limited (ASX:TXN) Announce Wilcox Oil Shows And Drilling Plans For Two Wells

Brisbane, April 7, 2011 AEST (ABN Newswire) - On a number of occasions Texon Petroleum Limited (ASX:TXN) has advised shareholders and potential investors about oil shows observed in Wilcox sands in several of its Leighton, Mosman, Rockingham, Sutton ("LMRS") area wells. Analysis of electric logs and side wall cores suggests that a significant footage of Wilcox pay could be present in some parts of the Company's LMRS leases.

The Wilcox sands have produced oil and gas from wells nearby to Leighton - the closest being in the Sofia field located 4km SW of Leighton and 2km north of Mosman Rockingham. Sofia has produced 1.5 million boe (1.3 mmbbls of oil and 1.2 bcf of gas) from two reservoirs.

The Upper Wilcox in Sofia was produced from 13 wells on 10 acre spacing with most wells being perforated over a 5-10' interval. Average production from the upper zone was 106,000 boe per well - 87% oil. Initial production rates were up to 150 boepd. The best well produced 314,000 bbls of oil from 6 feet of perforations in a 17' thick reservoir. The lower reservoir was produced from three of the above wells adding an average 17,000 boe of production to each of these three wells.

The Wilcox is 5,000 - 6,500 feet deep in the LMRS leases and the gross cost of a completed and connected well is estimated to be US$600-700,000.

The Company plans to investigate the productivity of the Wilcox through two wells to be drilled in the next several months - the first probably in May/June. Texon will have Working Interests of 100 and 50% respectively in these wells.

The Wilcox sands lie above the Olmos reservoir which is already producing from 10 wells drilled on the Leighton leases.

A successful outcome from these projects would indicate that Texon's LMRS leases could hold an important Wilcox oil resource - in addition to the already producing Eagle Ford and Olmos reservoirs on these leases.

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