Texon Petroleum Limited (ASX:TXN) Provides First Two Eagle Ford Wells Production Information

Brisbane, Aug 24, 2011 AEST (ABN Newswire) - This report sets out production information from Texon Petroleum Limited's (ASX:TXN) first two Eagle Ford wells.

Diagram I (see link at the bottom of the release) illustrates the barrels of oil produced in each month of production - eight months for Texon's first Eagle Ford well and four months for the second well.

Also shown is the average for 22 Eagle Ford wells in McMullen County (where Texon's Eagle Ford leases are located).

Both Texon's wells are producing above the average.

Also, the Texon Eagle Ford wells produce about 80% oil compared with 40% for the average McMullen County Eagle Ford well.

Diagram II (see link at the bottom of the release) illustrates the average boepd for each production month from Texon's first two Eagle Ford wells as well as a reference production curve which over its life, represents 425,000 boe.

Points of note are:

(1) Texon's EFS #1 was fracced over 15 stages;

(2) Texon's EFS #1 began production on the 15th day of the first month, so the boepd rate shown is the volume produced in 15 days but averaged over 30 days. The actual average for the first 15 days of production was 785 boepd;

(3) Production from Texon's EFS #1 approximates the reference curve;

(4) Texon's EFS #2 had 14 days of full production in the first month (plus four days at nil production and one day at partial production) at an average for these 14 days of about 600 boepd;

(5) In EFS #2, three of the 15 stages did not frac properly with a likely reduction in production output from these stages;

(6) EFS #2 had 20 days downtime (partial or nil production on a particular day) - primarily due to failure of the gas pipeline compressor in the first 90 days;

(7) The most recent production from EFS #2 is tending towards the reference curve.

In the first Eagle Ford well (Tyler Ranch EFS #1H), Texon has a 82% WI (61.5% NRI) and in the second Eagle Ford well (Teal EFS #1H), Texon has a 100% WI (75% NRI).

For the complete Texon Petroleum Limited announcement including Diagrams, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-TXN-234465.pdf

Contact

David Mason President & CEO Email: dave.mason@texonpetroleum.com.au John Armstrong Chairman Email: john.armstrong@texonpetroleum.com.au http://www.texonpetroleum.com.au