Texon Petroleum Limited : 11th Olmos Production Well

ASX Release

16 June 2011

ABN 24 119 737 772

11th OLMOS PRODUCTION WELL

Texon 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 has a 50% Working Interest (37.5% Nett Revenue Interest) in the well.

The location of this new Olmos production well (shown on the attached map) was classified as “Probable” at Year end 2010. A successful outcome will likely result in this well, together with the other three nearby “Probable and Possible” locations being reclassified as “Proved”.

Please refer to Texon’s website for announcements by the Company: www.texonpetroleum.com.au

Oil and gas futures prices (Source: NYMEX July 2011 contracts) Oil: US$94.81/bbl

Gas: US$ 4.58/mmbtu (approx. US$7/mcf for all Texon gas – including US$7.9/mcf for Olmos and

Eagle Ford gas)

-Ends-For further information, please contact:

Dr John Armstrong Mr David Mason Chairman Chief Executive Officer Brisbane: 07 3211 1122 Brisbane: 07 3211 1122

Houston: [phone] (Houston is 15 hours behind AEST)

Glossary:

bbl: barrel

mcf: thousand cubic feet

mmbtu: million British thermal units

Texon Petroleum Ltd

Level 9, 46 Edward Street, Brisbane, Qld 4000 Australia

Postal Address: GPO Box 402, Brisbane, Qld 4001

Telephone: [phone] Fax: [phone] www.texonpetroleum.com.au

Texon Petroleum Ltd

Level 9, 46 Edward Street, Brisbane, Qld 4000 Australia

Postal Address: GPO Box 402, Brisbane, Qld 4001

Telephone: [phone] Fax: [phone] www.texonpetroleum.com.au