ASX Announcement

Date: 31 August 2011

Texon Petroleum LtdABN 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 RowleyCompany 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

Third Eagle Ford Well

1,488 bopd

Texon announces that its third Eagle Ford well (Tyler Ranch EFS #2H) has tested oil and gas at the rates of 1,488 bopd and 700 mcfgpd (combined 1,605 boepd (6)) through a 16/64” choke at a flowing tubing pressure of 3,000 psi.

The well is located just to the north of the Company’s first Eagle Ford Well (Tyler Ranch EFS #1H) - please refer to the attached map.

The test rate from the third well is more than the 1,200 bopd initial rate from Texon’s first EF well through the same sized choke. The third well also has a higher flowing pressure which indicates the well may perform better than the first well.

As the ownership of our first and third EF wells is the same, the third well is already connected for oil and gas production through the EFS #1 production facilities.

Texon has an 82% Working Interest (61.6% Nett Revenue

Interest) in the Tyler Ranch EFS #2H well.

Texon’s CEO, David Mason said “this is a very good result for the Company. The EFS #3 well is expected to add new Proved, Probable and Possible locations to the Company’s inventory of firm Eagle Ford well locations and highlights the quality of Texon’s Eagle Ford acreage.”

-ends

Oil and gas futures prices:

Source: NYMEX October 2011

Oil: US$88.74/bbl

Gas: US$3.91/mmbtu (this translates to approx. US$6.50/mcf for all

Texon gas – including US$7.40/mcf for Olmos and Eagle Ford gas)

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Glossary:

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

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

psi: pounds per square inch

Attachment to Texon Release dated 31 August 2011