Texon Petroleum Limited (ASX:TXN) Secured Rig For Third And Fourth Eagle Ford Wells

Brisbane, April 18, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that it has secured a rig for its third and fourth Eagle Ford horizontal wells, Tyler Ranch EFS #2H ("TR EFS #2H") and Hoskins EFS #1H, which will be drilled on its Leighton and Rockingham leases respectively.

The third Eagle Ford well is located immediately north of the first Eagle Ford well ("Tyler Ranch EFS #1H"). The first Eagle Ford well had an initial production rate of 1,200 bopd and has produced 51,719 BO and 66.9 mmcfg or 62,866 boe in the past 120 days. This third Eagle Ford well is expected to begin drilling in mid May and take 30 days to drill. The Company has an 82% WI (61.5% NRI) in the well. A successful third Eagle Ford well will be able to use the tanks and other production facilities already in place for the first Eagle Ford well.

The fourth Eagle Ford well (Hoskins EFS #1H) will be drilled immediately following the drilling of the third Eagle Ford well. It is located some 3.5 kms south of the Company's recently completed second Eagle Ford well Teal EFS #1H which had an initial production rate of 1,105 bopd. The Eagle Ford in the vicinity of the fourth well is 140' thick with good oil and gas shows in nearby vertical wells such as Texon's Mosman/Rockingham #1 drilled in March 2010 (see Texon's announcement of 6 April 2010). The Company has a 95% WI (71.25% NRI) in the well.

The fraccing and testing of the third and fourth wells is scheduled for August.

In total, Texon has a 92.6% average working interest in approximately 6,387 gross acres including the Leighton, Mosman, Rockingham and Sutton leases, together with the 1,463 acres of Eagle Ford leases recently acquired.

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

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

- Oil: US$109.66/bbl

- Gas: US$4.20/mmbtu (approx. US$6.30/mcf for all Texon gas - including US$7.20/mcf for Leighton Olmos gas).

For the complete Texon Petroleum Limited announcement including maps, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/231260.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 15 hours behind Aust. Eastern Standard time) http://www.texonpetroleum.com.au