Texon Petroleum Limited (ASX:TXN) Report On Eagle Ford Wells Production

Brisbane, July 14, 2011 AEST (ABN Newswire) - EFS #1 (Tyler Ranch EFS #1H) (TXN 82% WI, 61.6% NRI)

Texon Petroleum Limited's (ASX:TXN) first Eagle Ford well has now been in production for six (6) months and during this period, 81,000 boe were produced - some 77% of the forecast for this period from the production model which forecasts 475,000 boe over the life of the well (page 27 of the AGM 2011 Presentation). The 6 month production outcome correlates with a well life production of 425,000boe.

However, in month seven (7), production has improved as a result of including the effect of gas lift installed mid month, averaging 346 boepd - in line with the 475,000 boe model forecast for this month.

EFS #2 (Teal EFS #1H) (TXN 100% WI, 75% NRI)

During its first 60 days of production, the well averaged 389 boepd.

Cumulative production from the first 60 days of 23,300 boe is some 50% of the first 60 days production in the 475,000 boe per well model referred to above.

Production tubing was installed in the well early in July and for the following nine (9) days, production averaged 459 boepd - which is up from the pre-tubing rate of some 270 boepd.

A review of the 15 stage EFS #2 fraccing program suggests that three (3) of the stages may only be partially contributing to the production. This together with the downtime issues at start-up (since resolved but which affected the first 60 days production) has resulted in the well to date not meeting its forecast rate.

Gas lift as in our first Eagle Ford well will be installed in the next few weeks, and this in combination with the already installed tubing, should enhance production from the well.

EFS #3 (Tyler Ranch EFS #2H) (TXN 82% WI, 61.6% NRI)

This well has drilled 2,300' of the 4,500' horizontal section and should reach its total depth in 3-5 days. The well will then be cased and suspended. Oil and gas shows in the well are equivalent to those seen in Texon's first Eagle Ford well.

EFS #4 (Hoskins EFS #1H) (TXN 95% WI, 71.25% NRI)

This well is scheduled to be drilled following EFS #3, using the same rig.

EFS #3 and #4 - Fraccing and Testing

Work on EFS #3 is scheduled to begin mid August and is expected to take a week. The 4th Eagle Ford well will likely be fracced and tested in September.

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

- Oil and gas futures prices (Source: NYMEX August 2011 contracts)
- Oil: US$97.67/bbl
- Gas: US$ 4.38/mmbtu (approx. US$6.60/mcf for all Texon gas - including US$7.40/mcf for Olmos and Eagle Ford 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