ASX Announcement

Date: 11 January 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 David Mason Bernard Rowley Company Secretary:

Des Olling

Contact: Cliff Foss President & CEO

cfoss@texozep.com
or:
John Armstrong Chairman john.armstrong@texonpetroleum.com.au

Wilcox - Increased Oil Flow

Now 55 bopd

At the time of the Company's release yesterday, it was thought that production from its first Wilcox well (Hoskins No.

2 (Wilcox)) had stabilized. However, the well has improved and over the following 24 hours flowed at 55 bopd.

Texon has a 95% WI (71.25% NRI) in the well.

Using this initial rate and forecast production including an assumed natural decline, then payout of Texon's investment in the well is estimated to be in 6-12 months.

See also Texon's Wilcox announcement on 10th January 2012 which contains a map showing the location of the well.

Oil and gas futures prices:

Source: NYMEX February 2012
Oil: US$102.20/bbl
Gas: US$3.11/mmbtu (this translates to approx. US$5.20/mcf for all Texon gas - including US$5.90/mcf for Olmos and Eagle Ford gas

Glossary:

bbl: barrel
bopd: barrels of oil per day mcf: thousand cubic feet
mmbtu: million British thermal units

Website:

www.texonpetroleum.com.au

ASX Code: TXN
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Wilcox Increased Oil Flow - Now 55 bopd