ASX Announcement

Date: 15 September 2011

Texon Petroleum LtdABN 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 David Mason Bernard RowleyCompany Secretary:

Des Olling

Contact: David Mason President & CEO

dave.mason@texonpetroleum.com.au

or:

John Armstrong Chairman john.armstrong@texonpetroleum.com.au

Website:

www.texonpetroleum.com.au

ASX Code: TXN

Iluka Flows Oil and Gas

236 boepd

Texon advises that its Iluka well (Scherer #1) has flowed gas and oil at the rates of 1.23 mmcfgpd and 31 bopd (236 boepd (6)) through a 9/64” choke at a pressure of 2,640 psi.

The well will now be connected for production.

The Company has three previous discoveries in this area in the Yegua formation (Avoca, Lennox, Nambucca), all of which are in production. The prospects were identified using some of the 180 3D seismic surveys to which Texon has access through its Prospect Generation Agreement with Wandoo.

Texon has a 32.5% WI (24.375% NRI) in the Iluka well.

-ends

Oil and gas futures prices:

Source: NYMEX October 2011

Oil: US$88.54/bbl

Gas: US$4.04/mmbtu (this translates to approx. US$6.70/mcf for all

Texon gas – including US$7.70/mcf for Olmos and Eagle Ford gas)

Glossary:

bbl: barrel

boepd: barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 6mcf to 1 barrel of oil equiv)

bopd: barrels of oil per day mcf: thousand cubic feet

mcfgpd: thousand cubic feet of gas per day mmbtu: million British thermal units

mmcfgpd:million cubic feet of gas per day psi: pounds per square inch