Texon Petroleum Limited (ASX:TXN) Mid-Year 2011 3P Reserves Amounts to 10mmboe

Brisbane, Aug 25, 2011 AEST (ABN Newswire) - Texon Petroleum Limited's (ASX:TXN) reserves are dominated by its Eagle Ford holdings. At mid year 2011, the Company's Eagle Ford reserves were assessed by Netherland, Sewell & Associates, Inc. For the rest of the Company's oil and gas properties, the mid year reserves are taken to be the 2010 year end reserves (determined by Delilah B Hainey of Hainey & Hainey, a reservoir consultant to the Company), less production in the first half of 2011.

The YE2010 Proved and Probable 'Olmos and Other' (non Eagle Ford) reserves less H1/2011 production are 1.61 mmboe.

The Eagle Ford reserves attributable to Texon's NRI are set out in the following table:

--------------------------------------------                          mboe--------------------------------------------           Proved  Probable  Possible  Total--------------------------------------------Eagle Ford  899     2,540     4,984    8,423--------------------------------------------

The overall Proved, Probable and Possible mid year 2011 Reserves attributable to the Company's NRI amount to just over 10 million boe - an increase of some 50% since year end 2010.

Eagle Ford reserves are 88% oil and gas liquids and make up 84% of the mid year reserves. The 'Olmos and Other' at mid year 2011 make up the remaining 16% and are about 50% oil and gas liquids.

Successful testing of the Company's third and fourth Eagle Ford wells in August and October this year should contribute to a further increase to the Company's reserves at year end 2011. Together with the two producing Eagle Ford wells, successful third and fourth wells would validate 45-50 Eagle Ford well locations out of the potential 75 '80 acre' Eagle Ford well locations on the Company's Eagle Ford leases.

Netherland, Sewell & Associates, Inc and Delilah B Hainey are qualified in accordance with ASX Listing Rule 5.11. Netherland, Sewell & Associates, Inc has consented to the form and context of the Eagle Ford reserves shown in this report.

For the complete Texon Petroleum Limited announcement including diagrams, please view:
http://media.abnnewswire.net/media/en/docs/69165-ASX-TXN-234524.pdf

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