ASX Announcement

Date: 10 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

Website:

www.texonpetroleum.com.au

ASX Code: TXN

Wilcox Oil Test

37 bopd

Texon's first Wilcox well (Hoskins No. 2 (Wilcox)) is producing oil at the rate of 37 bopd (370 API). Texon has a
95% WI (71.25% NRI) in the well.
The production is after fracture stimulation of two zones which NuTech (a log analysis specialist company which analysed Texon's Eagle Ford and Olmos reservoirs as well as working for numerous other companies) calculates represent 13 feet of pay.
The vertical part of the nearby Hoskins 1H (EFS) well contains 34' of NuTech indicated pay in the same interval.
The Teal #1 (H) EFS in the northern part of the Company's Mosman/Rockingham leases has 50' of indicated log pay in the same interval (5,800' - 6,400' in Teal #1H).
These results suggest that the Wilcox reservoirs could occur over at least the western (possibly 1,500 - 2,000 acres) part of the Company's Mosman/Rockingham leases.
Subject to the production performance of the Hoskins #1 (Wilcox) well over the coming months, then a second Wilcox well near the vertical part of the Teal #1 (H) EFS may be drilled to test the 50' of indicated Wilcox pay in this well.
A successful Wilcox well at Teal would provide encouragement that the Wilcox could be oil productive over a significant part of the Company's Mosman/Rockingham leases. At this stage it is unknown whether Wilcox wells in this area would drain 10, 20 or 40 acres per well, although indications as to this and expected oil recovery per well should begin to emerge after a few months of production.
Clifford S. Foss, President of Texon Petroleum said "This is a very good result with significant upside oil potential for the Company."
2

Oil and gas futures prices:

Source: NYMEX February 2012

Oil: US$101.36/bbl

Gas: US$3.01/mmbtu (this translates to approx. US$5.00/mcf for all Texon gas - including US$5.70/mcf for Olmos and Eagle Ford gas

Glossary:

API: American Petroleum Institute bbl: barrel

bopd: barrels of oil per day

mcf: thousand cubic feet

mmbtu: million British thermal units

NRI: Nett Revenue Interest

WI: Working Interest

Attachment to Texon Release dated 10 January 2012
distribué par

Ce noodl a été diffusé par Texon Petroleum Ltd. et initialement mise en ligne sur le site http://www.texonpetroleum.com.au. La version originale est disponible ici.

Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-10 10:23:04 AM et restera accessible depuis ce lien permanent.

Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité.

Documents associés
Wilcox Oil Test - 37 bopd