Texon Petroleum Limited (ASX:TXN) Reports 38 Feet of Yegua Gas Pay at Iluka Well

Brisbane, Aug 29, 2011 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its Iluka well (Scherer #1) has reached its total depth of 6,750 feet.

Electric logs indicate 38 feet of Yegua gas pay across two reservoirs. The lower 14 ft reservoir (good average porosity of 30% and log gas indications) will now be tested and if successful connected for production. The upper 24 ft reservoir (good average porosity of 32% and log gas indications) will be tested once the lower reservoir has finished producing.

The Company's three previous discoveries in this area in the Yegua formation (Avoca, Lennox, Nambucca) had similar log pay indications and initial production rates of between 0.4 and 1.5mcfgpd. All of these prospects have been identified using some of the 180 3D seismic surveys to which Texon has access through its Prospect Generation Agreement with Wandoo.

Texon has a 32.5% WI (24.375% NRI) in the Iluka well. The cost to Texon's 32.5%WI has been largely covered by the promoted USA based company in this drilling joint venture.

After completing this well in the next few days, the rig will move to drill Texon's first Wilcox oil test which is expected to spud in about a week.

Contact

David Mason President & CEO Email: dave.mason@texonpetroleum.com.au John Armstrong Chairman Email: john.armstrong@texonpetroleum.com.au http://www.texonpetroleum.com.au