Texon Petroleum Limited : Mosman Rockingham Olmos Well 220 BOEPD

ASX Announcement

Date: 12 June 2012

Texon Petroleum Ltd ABN 24 119 737 772

Level 9, 46 Edward Street

Brisbane, Qld Australia 4000

Postal: GPO Box 402

Brisbane, Qld Australia 4001

Telephone: [phone]

Fax: [phone]

Directors: John Armstrong David Mason Bernard Rowley Company Secretary:

Des Olling

Contact: Cliff Foss President & CEO

[e-mail]

or:

John Armstrong Chairman [e-mail]

Website:

www.texonpetroleum.com.au

ASX Code: TXN

Mosman-Rockingham

Olmos Well 220 BOEPD

Texon advises that its recently drilled Mosman-Rockingham Olmos well (Wheeler #1) has begun to flow oil and gas at the rate of 220 boepd comprising 87% oil (193 bopd) and 160 mcf of gas per day (27 boepd) .
The well will be connected for production to oil tanks and the gas pipeline in the next few days.
Texon has a 95% Working Interest (71.25% NRI) in the well.
Mr Clifford S. Foss, President of Texon Petroleum said "The Wheeler #1 well is the first step towards defining a potentially large Olmos oil deposit (3mmboe) in the Mosman-Rockingham area. We are pleased with this outcome and excited about the future drilling potential in the area".
-ends

Current oil and gas futures prices:

Source: NYMEX July 2012

Oil: US$81.12/bbl

Gas: US$2.26mmbtu (this translates to approx. US$3.80/mcf for all Texon gas - including US$4.30/mcf for Olmos and Eagle Ford gas)

Glossary:

bbl: barrel

boepd: barrels of oil equivalent per day (including gas converted to oil equiv barrels on basis of 6mcf to 1 barrel of oil equiv)

bopd: barrels of oil per day mcf: thousand cubic feet

mcfgpd: thousand cubic feet of gas per day mmbtu: million British thermal units

NRI: Net Revenue Interest

WI: Working Interest