Texon Petroleum Ltd

Texon Petroleum Limited (ASX:TXN) announces that it has successfully completed a placement of 24,166,681 million shares to sophisticated and institutional investors at an issue price of A$0.65 per share to raise approximately A$15.7 million. The placement, was very strongly supported by existing shareholders, institutional and sophisticated investors. RBS Morgans was the Lead Manager to the placement with the support of Patersons Securities Limited.

Texon Petroleum Limited (ASX:TXN) advises that it has secured lease agreements to purchase 1,140 acres near its Leighton / Mosman / Rockingham / Sutton ("LMRS") leases and which are prospective for oil and gas in the Eagle Ford.

Texon Petroleum Limited (ASX:TXN) advises that Peeler #2 ("P#2") has reached its total depth of 2,774 metres (9,100 feet). This is the ninth well in the Leighton oil and gas field - all of which have been successful. The Olmos in P#2 has similar reservoir characteristics to the Olmos in the previous eight (8) Leighton wells.

Texon Petroleum Limited (ASX:TXN) advises that it has had encouragement from a log analysis by NuTech of the Wilcox Formation in one of its recent wells. The NuTech analysis indicates pay in the interval where oil and gas shows were observed during drilling.

Texon Petroleum Limited (ASX:TXN) advises that its first Eagle Ford Well, Tyler Ranch EFS #1H, has produced 31,099 bo + 40,987 mcfg over 60 days on a restricted choke. This represents an average daily oil equivalent rate (without taking into account the high calorific value of the gas) of 632 boepd (518 bopd + 683 mcfgpd) converting gas on the basis that 6 mcf of gas equals 1 barrel of oil equivalent.

Texon Petroleum Limited (ASX:TXN) provide March 2011 testing updates on its four wells.

Texon Petroleum Limited (ASX:TXN) advises that Tyler Ranch #7 ("TR#7") has reached its total depth of 2,774 metres (9,100 feet). This is the eighth production well in the Leighton oil and gas field - all of which have been successful.

Texon Petroleum Limited (ASX:TXN) advises that its first Eagle Ford Well, Tyler Ranch EFS #1H, has produced 24,862 bo + 32,006 mcfg over 45 days on a restricted choke. This represents an average daily oil equivalent rate of 671 boepd (552 bopd + 711 mcfgpd) on the basis that 6mcf equals 1 barrel of oil equivalent.

Texon Petroleum Limited (ASX:TXN) advises that the gross production from its 12 producing wells has recently averaged 1,200 boepd (818 bopd and 4,591 mcfgpd).

Texon Petroleum Limited (ASX:TXN) advises that its first Eagle Ford Well, Tyler Ranch EFS #1H, has produced 19,651 boe (17,814 bo + 22,052 mcfg) over 30 days on a restricted choke. This represents an average daily oil equivalent rate of 655 boepd (594 bopd + 735 mcfgpd).