Texon Petroleum Ltd

The Boards of Texon Petroleum Limited (ASX:TXN) and Sundance Energy Australia Limited (ASX:SEA) are pleased to announce that they have agreed to the proposed Merger of Texon with Sundance via a scrip transaction that provides a unique consolidation opportunity with significant benefits for shareholders of both companies.

The Board of Texon Petroleum Ltd (ASX:TXN) is pleased to announce, in conjunction with its proposed merger with Sundance Energy Australia Limited, that, subject to all necessary approvals and to the completion of the proposed demerger of the non Eagle Ford shale assets, it has contracted to buy from Wandoo Energy, LLC (a company associated with Texon Director David Mason) its working interest in jointly owned Eagle Ford shale assets in McMullen County, Texas, as of 1 October 2012

Texon Petroleum Ltd (ASX:TXN) are pleased to provide a presentation regarding the Sundance Texon Merger Presentation.

Texon Petroleum Ltd (ASX:TXN) provide an update on the current drilling program.

Texon Petroleum Ltd's (ASX:TXN) net average daily production in the September quarter of 571 boepd was an increase on the Company's June quarter average of 371 boepd, mainly attributable to the added production from the Company's fifth Eagle Ford well (Peeler #1H) and the Wheeler #1 Olmos well being brought on stream during the quarter.

Texon Petroleum Ltd (ASX:TXN) The Company is continuing to progress a potential transaction, and in parallel is aiming to enhance the value of the EFS holding by further drilling set out in this update.

Texon Petroleum Ltd (ASX:TXN) has acquired a 50% Working interest in the Roundhouse Prospect located in Navarro County, Texas which encompasses 7,038 gross acres (3,519 net acres) of Cotton Valley Lime reservoir potential from private US oil and gas company Tanos Energy Holding, LLC. Tanos will remain operator with 50% working interest in the prospect.

At 1 August 2012, reserves attributable to Texon Petroleum Ltd's (ASX:TXN) NRI are as in the following table. (See release). The total of 12.58 mmboe is an 11% increase on the 11.33 mmboe at year end 2011 (after adjusting the year end 2011 reserves of 12.88 mmboe for the sale in March 2012 of the Leighton Olmos and Yegua reserves of 1.55 mmboe).

The attached Texon Petroleum Ltd (ASX:TXN) presentation provides an update of the Company's projects and will be presented to the Extraordinary General Meeting today.

Texon Petroleum Ltd (ASX:TXN) advises that its recently drilled Mosman-Rockingham Olmos well (Wheeler #1) has now been placed into full production with the completion of production facilities last week. Production tubing has been set and the well is flowing on a restricted rate of 168 bopd and 108 mcfgpd (186 boepd) with 1,300psi flowing tubing pressure on an 8/64" choke. Texon plans to observe the well on this restricted choke to ensure the well does not flow frac sand at this setting. If the well does not produce any sand, the choke will be opened further to increase the oil flow rate.