Texon Petroleum Ltd

Texon Petroleum Limited (ASX:TXN) advises that Peeler #3 has reached its total vertical depth of 2,774 metres (9,100 feet). This is the eleventh well in the Leighton oil and gas field - all of which are successful oil and gas producers.

Texon Petroleum Limited's (ASX:TXN) first Eagle Ford well has now been in production for six months and during this period, 81,000 boe were produced - some 77% of the forecast for this period from the production model which forecasts 475,000 boe over the life of the well. The 6 month production outcome correlates with a well life production of 425,000boe.

Texon Petroleum Limited (ASX:TXN) today releases the following report regarding the company progress and production activities.

Texon Petroleum Limited (ASX:TXN) advises that the 11th Leighton Olmos vertical production well (Peeler #3) commenced drilling on the 15th of June 2011. The well has a planned total depth of 2,743 metres (9,000 feet) and will take some 15 days to drill and run production casing. Fracture stimulation and testing of the well are scheduled for August.

Texon Petroleum Limited's (ASX:TXN) third horizontal Eagle Ford (TR EFS #2H) commenced drilling on the 12th of June. The well is located on the Company's Leighton lease just to the north of Texon's first Eagle Ford well which tested at an initial rate of 1,200 bopd. The well will have a 4,500 feet horizontal section similar to Texon's first two Eagle Ford wells and it is expected that drilling and casing operations will take 35 days.

In our release of 18th April, Texon Petroleum Limited (ASX:TXN) advised that it expected to begin the third Eagle Ford well in mid May. Texon advises that its third Eagle Ford well to be drilled in the Leighton area is now due to commence drilling by mid June, due to the late arrival of the rig from another operator.

Texon Petroleum Limited (ASX:TXN) advises that its second Eagle Ford Well, Teal EFS #1H, has produced 16,531 boe (14,024 bo + 15,043 mcfg) over its first 30 production days.

Texon Petroleum Limited (ASX:TXN) advises that it has secured a rig for its third and fourth Eagle Ford horizontal wells, Tyler Ranch EFS #2H and Hoskins EFS #1H, which will be drilled on its Leighton and Rockingham leases respectively.

Texon Petroleum Limited (ASX:TXN) advises following the recent successful production testing of its second Eagle Ford well and three Leighton Olmos wells, the total gross production from Texon's sixteen producing wells is in excess of 2,100 boepd, with Texon's nett beneficial interest being in excess of 1,200 boepd (made up of 840 bopd and 2,380 mcfgpd).

Texon Petroleum Limited (ASX:TXN) advises that its second Eagle Ford well, Teal Ranch EFS #1H, has flowed 1,228 boepd representing 1,105 bpd of light sweet crude oil and 736 mcfpd of gas with a flowing tubing pressure of 2086 psi through a 18/64" choke. Some of the frac fluid is also still being recovered.