Texon Petroleum Ltd

The test of Texon Petroleum Limited's (ASX:TXN) second Eagle Ford well is proceeding satisfactorily with the well flowing oil and gas and water (probably frac fluid). The oil and gas rates are in line with Texon's first Eagle Ford well at this stage of the test.

Texon Petroleum Limited (ASX:TXN) advises that the Share Purchase Plan (SPP) which was announced on 4 March and closed on 6 April has raised A$23.7m. Shareholders applied for 36.5m shares at an issue price of 65 cents which was discounted by 14.7% to the average of the closing prices of Texon's shares over the last five trading days before the announcement made on 23 February 2011. The offer was underwritten by RBS Morgans up to A$10.5m.

On a number of occasions Texon Petroleum Limited (ASX:TXN) has advised shareholders and potential investors about oil shows observed in Wilcox sands in several of its Leighton, Mosman, Rockingham, Sutton area wells. Analysis of electric logs and side wall cores suggests that a significant footage of Wilcox pay could be present in some parts of the Company's LMRS leases.

Texon Petroleum Limited (ASX:TXN) advises that two of its recently drilled 3 Olmos wells on its Leighton Project, (Peeler #2 and Tyler Ranch #8) have begun to flow oil and gas at the gross combined rate of 550 boepd from the Olmos reservoir (comprising 435 bopd and 689 mcf of gas per day).

Texon Petroleum Limited (ASX:TXN) advises that the frac and test work on its second Eagle Ford horizontal well (Teal EFS #1H) announced on 23 March 2011 is progressing well.

Texon Petroleum Limited (ASX:TXN) announced company reserves at the end of 2010. The reserves position is substantially increased since YE2009 with a further increase to occur by YE2011 if EFS-2 flows oil and gas in the near future, and the two mid 2011 EFS wells, and 2011 exploratory projects Coolangatta and Scarborough are successful.

Fracture stimulation and testing of Texon Petroleum Limited's (ASX:TXN) second Eagle Ford horizontal well (Teal EFS #1H) commenced on Tuesday 22 March 2011 (Houston time).

Texon Petroleum Limited (ASX:TXN) is to test 4 wells in March 2011.

Texon Petroleum Limited (ASX:TXN) advises that Tyler Ranch #8 has reached its total depth of 2,774 metres (9,100 feet). This is the tenth well in the Leighton oil and gas field - all of which have been successful.

Texon Petroleum Ltd (ASX:TXN) announces that its Share Purchase Plan (SPP) has opened for eligible shareholders in Australia and New Zealand to subscribe for up to A$15,000 worth of shares in the Company at an issue price of 65 cents. The offer will close at 5PM (Brisbane time) on Wednesday 6 April 2011. The issue price is the same as the recent successful placement to sophisticated and institutional investors which raised A$15.7m and represents a discount of 14.7% to the average of the closing prices of Texon's shares over the last five trading days before the announcement made on 23 February 2011. RBS Morgans is the lead manager for the SPP and is underwriting the offer up to A$10.5m.