16 June 2011
ABN 24 119 737 77211th 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: +1 281 419 4976 (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: +61 (07) 3211 1122 Fax: +61 (07) 3211 0133 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: +61 (07) 3211 1122 Fax: +61 (07) 3211 0133 www.texonpetroleum.com.au