Texon Petroleum Ltd

Texon Petroleum Ltd (ASX:TXN) (PINK:TEXOF) advises that it has closed a Purchase and Sale Agreement with a USA based company whereby Texon has sold its holdings in the Leighton area Olmos reservoir.

Texon Petroleum Ltd (ASX:TXN), in regard to yesterday's release on this project, the attached "Flyer" was made available at the North American Prospect Exposition ("NAPE") being held this week (23/24 February) in Houston, Texas, USA.

Texon Petroleum Ltd (ASX:TXN) advises that it has appointed Albrecht & Associates, Inc. and RBS Morgans Limited to seek potential buyers for all or part of the Company's 7,200 acre Eagle Ford oil project.

Texon Petroleum Limited (ASX:TXN) is pleased to provide a quarterly report for the period ended 31 December 2011.

At the time of Texon Petroleum Ltd's (ASX:TXN) release yesterday, it was thought that production from its first Wilcox well (Hoskins No. 2 (Wilcox)) had stabilized. However, the well has improved and over the following 24 hours flowed at 55 bopd.

Texon Petroleum Ltd's (ASX:TXN) first Wilcox well (Hoskins No. 2 (Wilcox)) is producing oil at the rate of 37 bopd (370 API). Texon has a 95% WI (71.25% NRI) in the well.

Texon Petroleum Ltd (ASX:TXN) advises that it has acquired a further 480 acres of Eagle Ford leases. This takes Texon's Working Interest Eagle Ford holdings to 7,200 acres out of a gross 7,700 acres.

Texon's (ASX:TXN) fourth Eagle Ford well (Hoskins EFS #1H) produced 41,606 boe (35,530 bo + 36,455 mcfg) during its first 60 days of production. This is an average daily rate of 693 boepd of which some 90% is oil and gas liquids.

Texon Petroleum Ltd (ASX:TXN) advises that Mr David Mason, 2007 IPO founding CEO of the Company will retire as CEO on the 30th of November 2011. Mr Mason has seen the Company grow its beneficial production to about 1,600 boepd in recent weeks and achieve an important holding in the Eagle Ford oil and gas resource play in Texas. On behalf of shareholders, the Board records its appreciation of Mr Mason's contributions over the last four years and wishes him well in his future endeavours. Mr Mason will remain on the Board of the Company.

Since the Chairman's Letter of 18th August, Texon Petroleum Ltd (ASX:TXN) has drilled, tested and is producing oil and gas from two (2) new Eagle Ford wells, both of which in early production are better than the Company's first two Eagle Ford wells. The performance of these wells indicates an improved understanding of the acreage and its geological and engineering characteristics. The Company has acquired an additional 830 acres (100% Working Interest) taking its total Eagle Ford holding to 6,734 WI acres.