Texon Petroleum Limited (ASX:TXN) First Eagle Ford Well Drilling Begins

Brisbane, Sep 23, 2010 AEST (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that the first Eagle Ford well on its Leighton Project, Tyler Ranch EFS #1H, has commenced drilling and is expected to take about 30 days to reach its total depth.

Texon has a 82% WI (61.6% NRI) in the well.

Texon's first Eagle Ford well will have a vertical depth of 10,500 feet then a horizontal lateral of 4,500 feet. It is a technically low risk well as it will be located beside Texon's Tyler Ranch #4 vertical well which had 142 ft of good quality Eagle Ford with strong oil and gas shows. It is also located some 500m from an Eagle Ford production well drilled by US independent Swift Energy (NYSE:SFY) adjacent to the Leighton project. Swift's well had an initial production rate of 775BOPD and 1,000mcfgpd (940 BOEPD).

A second Eagle Ford well is planned to begin drilling in November or December in the Mosman/Rockingham area. Texon will have a 100%WI (75% NRI) in this well.

Oil and gas futures prices (Source: NYMEX November 2010 contracts)

- Oil: US$74.32/bbl
- Gas: US$4.10/mmbtu (approx. US$5.30/mcf for all Texon gas - including US$6.50/mcf for Leighton Olmos gas)

Contact

Dr. John Armstrong Chairman Tel: +61-7-3211-1122 (Brisbane) Mr. David Mason Chief Executive Officer Tel: +61-7-3211-1122 (Brisbane) Tel: +1-281-419-4976 (Houston) (Houston is 15 hours behind Aust. Eastern Standard time) http://www.texonpetroleum.com.au