spp allocation, page-32

ASX Release

12 April 2011

FEBRUARY PLACEMENT AND SHARE PURCHASE PLAN RAISE $39.4M


Texon Petroleum Ltd advises that the Share Purchase Plan (SPP) which was announced on 4 March and closed on 6 April has raised $23.7m. Shareholders applied for 36.5m shares at an issue price of 65 cents which was discounted by 14.7% to the average of the closing prices of Texons shares over the last five trading days before the announcement made on 23 February 2011. The offer was underwritten by RBS Morgans up to $10.5m.

Directors were pleased with the support received from shareholders which represented a take-up by 74% of the Companys shareholders. In view of the opportunities available to the Company, the Directors resolved to accept all shareholder applications raising significantly more than the underwritten amount.
The Company has now raised $39.4m (before costs) including the placement of 24.2 million shares to sophisticated and institutional investors in February at 65 cents per share. These funds will allow the Company to fund its 2011 work program as outlined in the SPP offer document. The principal projects for the rest of 2011 are:

The third and fourth Eagle Ford wells;

Four (4) more Leighton Olmos production wells;

Two (2) Wilcox oil wells;

A well to test the Scarborough gas / liquids prospect;

A well to test the Coolangatta gas / liquids prospect;

A project to strengthen the Companys mapping capability to substantially increase the output of prospects.