ASX Announcement

Date: 10 Dec ember 2012

Texon Petroleum Ltd ABN 24 119 737 772

Level 9, 46 Edward Street

Brisbane, Qld Australia 4000

Postal: GPO Box 402

Brisbane, Qld Australia 4001

Telephone:+61 7 3211 1122

Fax: +61 7 3211 0133

Directors: John Armstrong Bernard Rowley David Mason Company Secretary:

Des Olling

Contact: Clifford Foss President & CEO cfoss@tex ozep.co m

or:

John Armstrong

Chairman


john.armstrong@texonpetroleu m.co m.au

Website:

www.tex onpetroleum.com.au

ASX Code: TXN


Current Drilling Wells Update

As previously announce d in the 30 November ASX release, Hoskins #4H, the eighth Texon Eagle Ford well commenced drilling operations on 6 December 2012. The Hoskins #4H well, a lease obligation well is planned for a lateral length of 7420 ft. at a measured depth of 18,800 ft, at a true vertical depth of
11,340 ft. Fraccing operations are planned to begin in late
January 2013 pending crew and equipment availability.
The previously announced Hoskins #3H and the Quintanilla SM EF #1H (sixth and seventh Eagle Ford wells) have been cased for completion operations and are planne d to be fracture stimulated commencing 17 December 2012.
Production facilities and pipeline connections for these wells will be completed in the next several weeks prior to flow back and production testing of the wells anticipated in January/February
2013.
President Clifford Foss said "All three of these new wells are longer laterals than any of our previous wells and we hope the added lateral length and additional frac stages will add significant reserve value and production rate increases to Texon's holdings in McMullen Co. Texas."
The attached map shows the wells surface and bottom hole locations.
- ends

Current oil and gas futures prices:

Source: NYMEX January 2013

Oil: US$86.42/bbl

Gas: US$3.64mmbtu (this translates to approx. US$5.90/mcf for

Texon gas)

Page -2-

Glossary:

bbl: barrel

bo: barrels of oil

boe: barrels of oil equiv alent

boepd: barrels of oil equiv alent per day (including gas conv erted to oil quiv barrels on basis of 6mcf to 1 barrel of oil equiv )

ft: feet

mcf: thousand cubic feet

mcfg: thousand cubic feet of gas

mmbtu: million British thermal units

WI: Working Interest

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