Texon Petroleum Limited (ASX:TXN) Eleventh Leighton Well Successful

Brisbane, July 21, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that Peeler #3 ("P#3") has reached its total vertical depth of 2,774 metres (9,100 feet). This is the eleventh well in the Leighton oil and gas field - all of which are successful oil and gas producers.

P#3 is the northern most well drilled to date in the Leighton field. The targeted Olmos sand in P#3 has reservoir characteristics similar to the other Olmos production wells. This positive result confirms that the Leighton Olmos reservoir extends across the northern part of the field and that it contains good quality reservoir further de-risking the 24 undrilled Olmos well locations in the field.

Production casing has been installed in the well in preparation for fracture stimulation in August. The well will then be connected for oil and gas production.

The closest three Olmos production wells, Peelers #1 and #2 and Tyler Ranch #5 tested at initial rates of 170-445 boepd, including 80% oil, although as production progresses the proportion of gas increases.

Texon has a 50% working interest (37.5% net revenue interest) in Peeler #3.

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$98.10/bbl

- Gas: US$4.55/mmbtu (approx. US$6.90/mcf for all Texon gas - including US$7.70/mcf for Olmos and Eagle Ford gas)

Please refer to the following link for the Leighton field map:
http://media.abnnewswire.net/media/en/docs/ASX-TXN-233482.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