Texon Petroleum Limited : Third EF Well 60 Day Result - 24% More Oil than EFS #1

ASX Announcement

Date: 11 November 2011

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

Des Olling

dave.mason@texonpetroleum.com.au

or:

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

www.texonpetroleum.com.au

Third Eagle Ford Well Production

• 60 Day Result - 43,898 boe

• 24% more oil than EFS #1

Texon advises that its third Eagle Ford Well, Tyler Ranch
EFS #2H, has produced 38,677 bo + 31,329 mcfg over
60 days. This represents an average daily rate of 732 boepd (645 bopd + 522 mcfgpd) on the basis of 6mcf of gas converting to 1 barrel of oil equivalent.
The volume of oil produced from the Company's third Eagle Ford well over its first 60 days of production is 24% more than Texon's first Eagle Ford well.

On the 11th of October, the Company reported a 30 day average rate for the well of 1,000 boepd. The corrected
30 day average rate for our EFS #3 is 817 boepd, with the #3 oil rate still being significantly better (some 23%)
than the Company's first Eagle Ford well over its first 30 days.
The cause of the discrepancy was a faulty oil meter which for seven (7) days was reading above the actual rate - now determined on the basis of oil tanker off-take volumes from the well site. On-site personnel changed the meter but continued to report the prior incorrect daily oil readings for the previous seven (7) days and this resulted in the Company reporting the wrong 30 day average.
Oil and gas measurement systems and procedures for all Texon's Eagle Ford wells have been checked by an experienced production engineer and are in good order. The seven (7) days of meter error on EFS #3 is an unfortunate but isolated incident and the well remains the Company's best Eagle Ford producer.
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Early indications using the corrected data for EFS #3 are that the ultimate recovery from the well will be higher than from our first Eagle Ford well, which in turn is producing better than the 425,000 boe curve reported in the Company's release of 24 August 2011.
Texon has an 82% Working Interest (61.6% Nett Revenue Interest) in the Tyler Ranch EFS #2H
well.
-ends

Source: NYMEX December 2011

Oil: US$97.77/bbl

Gas: US$3.65/mmbtu (this translates to approx. US$6.10/mcf for all Texon gas - including US$6.90/mcf for Olmos and Eagle Ford gas)

bbl: barrel

bo: barrels of oil

boe: barrels of oil equivalent

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

mcfg: thousand cubic feet of gas

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