ASX Announcement

Date: 8 September 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

Wilcox Oil Test

Texon’s first Wilcox well (Hoskins No. 2 (Wilcox)) to test oil shows observed during drilling Wilcox sands in several of its Leighton, Mosman and Rockingham area wells, spudded on the 7th of September.

Total depth is programmed to be 6,500 feet with the Wilcox sands being between 5,500’ and 6,500’. The well should take

14 days to drill.

The well is located close to the vertical part of the Company’s fourth Eagle Ford well (Hoskins EFS #1H) (see attached map) because analysis of the logs over the Wilcox in this well by NuTech (a log analysis specialist company which analysed Texon’s Eagle Ford and Olmos reservoirs as well as working for numerous other companies) indicates some 70 feet of pay in 9 sands. It was determined not to test these zones in the Eagle Ford well so as not to jeopardize the 4,800’ of horizontal Eagle Ford part of the well, but to drill a new well to specifically test the Wilcox.

In the Teal EFS #1H well (Texon’s third Eagle Ford well) in the north of the Mosman / Rockingham leases, there are six Wilcox sands amounting to 38’ with oil shows in side wall cores. There are a further 47’ of Wilcox sands in Teal which NuTech analysis indicates could also be pay.

The Wilcox reservoirs have produced oil and gas from wells nearby to Leighton – some being in the Sophia field located

4km SW of Leighton and 2km north of Mosman. Sophia produced 1.5 million boe (1.3 mmbbls of oil and 1.2 bcf of

gas) from a field area of about 150 acres.

Texon’s Leighton, Mosman and Rockingham area wells which had Wilcox oil shows during drilling or potential NuTech pay on logs are identified on the attached map. A number of Wilcox sands in most of these wells have been calculated to be pay by NuTech.

There are a number of other nearby wells shown on the map which have produced oil or gas from the Wilcox.

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If the Company’s first Wilcox well yields commercially producible oil, this could indicate that productive Wilcox reservoirs could be present over a significant part of the Company’s leases from the Tyler Ranch and Peeler wells in the north to the Hoskins No. 2 (Wilcox) in the south.

Texon has a 100%WI (75% NRI) in the Company’s first Wilcox well. Dry hole cost of the well is forecast to be US$400,000.

When the results of the first Wilcox oil test well are known in a few weeks time, we will be able to assess whether the Wilcox holds any significant oil potential for the Company.

-ends

Oil and gas futures prices:

Source: NYMEX October 2011

Oil: US$90.11/bbl

Gas: US$3.94/mmbtu (this translates to approx. US$6.50/mcf for all Texon gas – including US$7.50/mcf for

Olmos and Eagle Ford gas)

Glossary:

API: American Petroleum Institute bbl: barrel

bcf: billion cubic feet

boe: barrels of oil equivalent (including gas converted to oil equiv barrels on basis of 6mcf to 1 barrel of oil equiv)

boepd: barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 6mcf to 1 barrel of oil equiv)

km: kilometres

mcf: thousand cubic feet mmbbls: million barrels

mmbtu: million British thermal units

NRI: Nett Revenue Interest

SW: South West

WI: Working Interest

Technical Information

The Wilcox sands in the Hoskins EFS #1H have porosities from 18-28%. No side wall cores were taken.

The six (6) Wilcox sands in the Teal well which amount to 38’ had oil shows in side wall cores (1.1 to

17%), porosities from side wall cores of 17 to 30%, and permeabilities from 1 to 450 millidarcies. Oil recovered from two of the side wall cores was 39/400 API. The NuTech analysis of the Teal Wilcox

which suggests that there could be a further 47 feet of Wilcox oil or gas pay in the well in eight (8) other sands also indicates that the rock properties in some of these are not as good as the sands above.

There are two Wilcox reservoirs in the Sophia field. The Upper Wilcox reservoir was produced from 13 wells on about a 10 acre spacing with most wells being perforated over a 5-10’ interval. Average production from the upper zone was 106,000 boe per well – 87% oil. Initial production rates were up to

150 boepd. The best well produced 314,000 bbls of oil from 6 feet of perforations in a 17’ thick reservoir. The lower reservoir at Sophia was produced from three of the above wells adding an

average 17,000 boe of production to each of these wells.

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Attachment to Texon release dated 8 September 2011