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Texon Petroleum Limited (ASX:TXN) Releases First Eagle Ford Well 45 Day Result.

Brisbane, Australia, Jan 31, 2011 - (ABN Newswire) - Texon Petroleum Limited (ASX:TXN) advises that its first Eagle Ford Well, Tyler Ranch EFS #1H, has produced 24,862 bo + 32,006 mcfg over 45 days on a restricted choke. This represents an average daily oil equivalent rate of 671 boepd (552 bopd + 711 mcfgpd) on the basis that 6mcf equals 1 barrel of oil equivalent. The 30 day rate on the same 6:1 basis was 716 boepd. The restricted choke is used to maintain reservoir pressure, slow the decline in production and potentially enhance oil recovery.

With a Henry Hub gas price of US$4.50/mmbtu, the Company receives approximately US$7.60/mcf due to the high heating value of the Eagle Ford gas and the presence of natural gas liquids providing a valuable uplift in revenue in addition to the oil revenue.

Texon's working interest in the well is 82%. Texon's beneficial interest (NRI) in the 45 day production is 61.6% or some 403 boepd.

Oil and gas futures prices (Source: NYMEX February 2011 contracts)

- Oil: US$91.54/bbl

- Gas: US$4.50/mmbtu (approx. US$6.3/mcf for all Texon gas - including US$7.60/mcf for Olmos and Eagle Ford gas which make up 65% of Texon's gas production)

About Texon Petroleum Ltd:

Texon Petroleum Limited's (ASX:TXN) goal is to find commercially producible oil and gas by drilling 3D seismic controlled high equity prospects which have targets analogous to adjacent producing wells on established oil and gas producing trends in Texas.

Copyright 2011 ABN Newswire

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Publication:ABN Newswire
Date:Jan 31, 2011
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