ASX Announcement

Date: 26 October 2011

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 David Mason Bernard Rowley Company 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

Olmos Sale

Texon advises that it has appointed Houston based Albrecht

& Associates to seek buyers for Texon's Olmos production and related leases. This possibility was raised in the

Chairman's letter to Shareholders dated 18 August 2011.

Proceeds from the sale will strengthen the Company's cash position.

Texon will retain its Eagle Ford production and leases in this area.

Enquiries should be directed to Mr Harrison Williams, Executive Vice President at Albrecht & Associates - hwilliams@albrechtai.comor telephone +1 (713) 951 9586.

Oil and gas futures prices:

Source: NYMEX December 2011
Oil: US$92.52/bbl
Gas: US$3.66/mmbtu (this translates to approx. US$6.10/mcf for all
Texon gas - including US$7.00/mcf for Olmos and Eagle Ford gas

Glossary:

bbl: barrel
mcf: thousand cubic feet
mmbtu: million British thermal units