Texon Petroleum Limited (ASX:TXN) Wilcox Oil Test Update

Perth, Sep 8, 2011 AEST (ABN Newswire) - Texon Petroleum Limited's (ASX:TXN) first Wilcox well (Hoskins No. 2 (Wilcox)) to test oil shows observed during drilling Wilcox sands in several of its Leighton, Mosman and Rockingham area wells, spudded on the 7th of September.

Total depth is programmed to be 6,500 feet with the Wilcox sands being between 5,500' and 6,500'. The well should take 14 days to drill.

The well is located close to the vertical part of the Company's fourth Eagle Ford well (Hoskins EFS #1H) (see attached map) because analysis of the logs over the Wilcox in this well by NuTech (a log analysis specialist company which analysed Texon's Eagle Ford and Olmos reservoirs as well as working for numerous other companies) indicates some 70 feet of pay in 9 sands. It was determined not to test these zones in the Eagle Ford well so as not to jeopardize the 4,800' of horizontal Eagle Ford part of the well, but to drill a new well to specifically test the Wilcox.

In the Teal EFS #1H well (Texon's third Eagle Ford well) in the north of the Mosman / Rockingham leases, there are six Wilcox sands amounting to 38' with oil shows in side wall cores. There are a further 47' of Wilcox sands in Teal which NuTech analysis indicates could also be pay.

The Wilcox reservoirs have produced oil and gas from wells nearby to Leighton - some being in the Sophia field located 4km SW of Leighton and 2km north of Mosman. Sophia produced 1.5 million boe (1.3 mmbbls of oil and 1.2 bcf of gas) from a field area of about 150 acres.

Texon's Leighton, Mosman and Rockingham area wells which had Wilcox oil shows during drilling or potential NuTech pay on logs are identified on the attached map. A number of Wilcox sands in most of these wells have been calculated to be pay by NuTech.

There are a number of other nearby wells shown on the map which have produced oil or gas from the Wilcox.

If the Company's first Wilcox well yields commercially producible oil, this could indicate that productive Wilcox reservoirs could be present over a significant part of the Company's leases from the Tyler Ranch and Peeler wells in the north to the Hoskins No.2 (Wilcox) in the south.

Texon has a 100%WI (75% NRI) in the Company's first Wilcox well. Dry hole cost of the well is forecast to be US$400,000.

When the results of the first Wilcox oil test well are known in a few weeks time, we will be able to assess whether the Wilcox holds any significant oil potential for the Company.

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