Texon Petroleum Ltd (ASX:TXN) Announce 3rd Eagle Ford Well 60 Day Result

Sydney, Nov 11, 2011 AEST (ABN Newswire) - Texon Petroleum Ltd (ASX:TXN) advises that its third Eagle Ford Well, Tyler Ranch EFS #2H, has produced 38,677 bo + 31,329 mcfg over 60 days. This represents an average daily rate of 732 boepd (645 bopd + 522 mcfgpd) on the basis of 6mcf of gas converting to 1 barrel of oil equivalent.

The volume of oil produced from the Company's third Eagle Ford well over its first 60 days of production is 24% more than Texon's first Eagle Ford well.

EFS #3 - 30 Days Correction

On the 11th of October, the Company reported a 30 day average rate for the well of 1,000 boepd. The corrected 30 day average rate for our EFS #3 is 817 boepd, with the #3 oil rate still being significantly better (some 23%) than the Company's first Eagle Ford well over its first 30 days.

The cause of the discrepancy was a faulty oil meter which for seven (7) days was reading above the actual rate - now determined on the basis of oil tanker off-take volumes from the well site. On-site personnel changed the meter but continued to report the prior incorrect daily oil readings for the previous seven (7) days and this resulted in the Company reporting the wrong 30 day average.

Oil and gas measurement systems and procedures for all Texon's Eagle Ford wells have been checked by an experienced production engineer and are in good order. The seven (7) days of meter error on EFS #3 is an unfortunate but isolated incident and the well remains the Company's best Eagle Ford producer.

EUR

Early indications using the corrected data for EFS #3 are that the ultimate recovery from the well will be higher than from our first Eagle Ford well, which in turn is producing better than the 425,000 boe curve reported in the Company's release of 24 August 2011.

Texon has an 82% Working Interest (61.6% Nett Revenue Interest) in the Tyler Ranch EFS #2H well.

Contact

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