ASX Announcement

Date: 23 July 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: Cliff Foss President & CEO

cfoss@texozep.com
Tel: +1 832 510 2076 or:
John Armstrong Chairman john.armstrong@texonpetroleum.com.auTel: +61 7 3211 1122

Website:

www.texonpetroleum.com.au

Fifth Eagle Ford Well -

1,072 bopd (1,262 boepd)

Texon advises that its fifth Eagle Ford well (Peeler EFS #1H) has tested at the rates of 1,072 bopd and 1.137 mmcfgpd (1,262 boepd) on an 18/64" choke at a flowing pressure of

2,794 psi.

It is expected that the well will be connected to oil and gas production tanks and pipelines next week.

Texon has an 89.24% WI (66.88% NRI) in the well.

Clifford S. Foss President of Texon Petroleum said "This is a very good result for a 15 stage frac in this lease obligation well."

-ends

Current oil and gas futures prices:

Source: NYMEX Sept 2012
Oil: US$91.83/bbl
Gas: US$3.08/mmbtu (this translates to approx. US$5.10/mcf for all
Texon gas - including US$5.90/mcf for Olmos and Eagle Ford gas)

Glossary: ASX Code: TXN

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

mmbtu: million British thermal units

mcfgpd: thousand cubic feet of gas per day psi: pounds per square inch

NRI: Net Revenue Interest

WI: Working Interest

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