ABN 24 119 737 772

18 April 2012 Company Presentation Material The attached document will be presented by the Company’s Chairman, Dr John Armstrong, to the RBS Morgans Unconventional Oil and Gas Day in Sydney today. -ends For further information, please contact: Dr John Armstrong Chairman Brisbane: 07 3211 1122 Or Mr Clifford S. Foss Jr Chief Executive Officer Houston: +1 281 419 4976 (Houston is 15 hours behind Aust. Eastern Standard time)

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 LtdABN 24 119 737 772

Level 9, 46 Edward StreetBrisbane,  Qld Australia 4000

Postal:  GPO Box 402Brisbane, Qld Australia 4001

Telephone:   +61 7 3211 1122Fax: +61 7 3211 0133

Directors:John ArmstrongBernard RowleyDavid Mason

Company Secretary:Des Olling

Contact:Cliff FossPresident & CEOcfoss@texozep.comor:John ArmstrongChairmanjohn.armstrong@texonpetroleum.com.au

Website:www.texonpetroleum.com.au

ASX Code:  TXN 18 April 2012

RBS Morgans’

Unconventional Oil & Gas

Conference

Sydney

2

Important Statement

April 2012

• The information contained in this document concerning Texon Petroleum Ltd (Texon) consists of general background informationabout Texon's activities as at the date of the document – 13 April 2012. This information is provided in summary form and may be derived from sources that have not been independently verified by Texon. No representation or warranty is made as to the accuracy, completeness or reliability of the information provided (including any tables, charts, diagrams or maps).

• The document contains certain statements (including projections, estimates, opinions and forecasts) concerning the anticipated future performance of Texon and its operations (Forward Looking Statements). None of these Forward Looking Statements is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Texon's control. Accordingly, Texon's actual results, performance and prospects could differ substantially from that expressed in or implied by the Forward Looking Statements. Texon undertakes no obligation to update publicly or release any revisions to the document or Forward Looking Statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events.

• This document does not create an obligation on Texon to accept or consider any offer to enter into a transaction with a recipient or any other party.

• This document is not an offer, invitation or recommendation to subscribe for securities by Texon. Nor does this document constitute advice to investors or potential investors and it should not be relied upon as such as it does not take into account the investment objectives, financial situation or needs of any particular investor. Recipients of this document are strongly recommended to seek their own financial, legal, tax and other advice and make their own independent investigations and appraisals of Texon and the information contained in this document .

• Texon, its related entities, officers, employees, advisors, consultants and agents disclaim and exclude to the extent permitted by law all liability (including negligence) for any loss, claim, demand, damages, costs and expenses of whatever nature (whetherforeseeable or not) suffered or incurred by any person relying or acting on the information contained in the document (includingthe Forward Looking Statements) or arising in connection with that information being inaccurate or incomplete.

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Texon

• ASX listed, Texas based oil and gas company with beneficial production of ca.1,000 boepd (Jan 2012) or 500 boepd (after the Leighton Olmos sale).

• President & CEO Mr. Clifford S. Foss Jr. - 40 years of success in the Texas Gulf Coast area.

• Board with international oil and gas experience.

• 2011 revenue of US$21.6M, and 2011 net Texon production of 295,000 boe.

• Prime asset - 7,196 WI acres of Eagle Ford Shale (59mmboe working interest resource potential).

• Other assets include Olmos oil project, other leased projects, access to 180 3D seismic surveys, emerging multi-well / resource oil projects.

Exchange ASX

ASX Code TXN

Share Price $0.59

Shares on Issue 242.5m

Market Capitalisation $143m

02,000,0004,000,0006,000,0008,000,000

10,000,000

31-Dec-10 1-Apr-11 1-Jul-11 30-Sep-11 30-Dec-11$0.40$0.50$0.60$0.70$0.80$0.90$1.00

Volume (Weekly) Price

April 2012

4

Area of operations

• SW Texas

• Principle asset, EFS in McMullen county

• Infrastructure and skilled workforce

• Proven oil and gas region~ 3,500’ depth

~ 6,500’ depth

~ 9,000’ depth

~ 11,000’ depth

~ 13,300’ depth

Reservoir Sequence

April 2012

5

Target Well Results

Eagle Ford 4 out of 4

Olmos 12 out of 13

Wilcox (oil) 1 out of 1

Wilcox (gas) 0 out of 1

Yegua 4 out of 4

Frio 7 out of 7

28 out of 30

Track Record

IncreasingMateriality

Bar excludes immaterial Yegua and FrioProjects

90% Success

April 2012

6

TEXONBOARD

John Armstrong (C)Bernard Rowley

David MasonDes Olling (Sec)

OPERATIONSContractors

+Consultants

180 3D SeismicSurveys

Subsurface Technical

Staff

Outsourced

Organisation

MANAGEMENTClifford S. Foss Jr.

(CEO)Michael Hills

(Finance)Prospect

Generation Team

WANDOOProspect Generation

Agreement(PGA)

Outsourced

Independent third party prospect

generators

April 2012

7

Key Management / Project Sources

Oil and gas plays for Texon are emerging from its prospecting network:

• Internally generated targets

• Third party prospect generators

• Wandoo PGA and unique access to a database of 180 3D seismic surveys.

• Mr Clifford S Foss Jr. - CEO and President of Texon Petroleum Ltd (December 2011).

• 2006 to 2008 Senior Vice President of Exploration for Petrohawk Energy, 2000-08 same position with KCS Resources.

• 40 years of successful exploratory and production experience in the Texas Gulf Coast area.

• Wide knowledge of the history of the industry, the ingredients for success, the active companies and an extensive range of industry contacts.

Clifford Foss - CEO

Project Sources

April 2012

8

Wandoo Data Base & Operating Areas

Through the Wandoo Prospect Generation Agreement Texon has the first option on prospects generated from:• 180 3D Seismic Surveys totalling 24,600km2

• 30,000 km 2D Seismic; and• 212,000 km2 Texon Project entitlement area

Source: Texon reports

April 2012

Texon

9

Eagle Ford Shale – A premier hydrocarbon resource

• The Eagle Ford Shale is the premier shale play in North America.

• Value of Eagle Ford acreage – some US$30 billion in deals since 2009.

• Value appreciated by major industry players including BHP Billiton, Marubeni, Marathon, Reliance Industries, CNOOC, Talisman, Statoil, Royal Dutch Shell and more.

• Over 250 drill rigs (one in eight) operating on the Eagle Ford Shale drilling mostly for oil.

• “Eagle Ford offers the highest economic returns of all US shales” – BHP Billiton, ASX Release, 14 November 2011

April 2012

10

EFS – Large acreage and high working interest• Texon has gross Eagle Ford holding of 7,712 acres with large working interests (WI) across its leases

ranging from 82% to 100% (average WI of 93.3%) i.e. 7,196 Texon working interest acres.

• Texon’s working interest resource potential is approximately 59mmboe.

• Surrounded by large oil and gas industry companies.

• 3D seismic is available on all EFS leases.

• Closer well spacing has the potential to significantly increase the resource potential.

April 2012

11

EFS – Liquids rich oily window

• Texon acreage - Eagle Ford Shale sweet spot for oil production.

• Liquids rich production.

• Over 90% of revenue is linked to oil price.

• Texon EFS oil receives a premium to the NYMEX oil price.

Eagle Ford IP (bopd) – McMullen CoTexon Nov11 product revenue breakdown

April 2012

12

EFS – Production & large resource potential

• Four Eagle Ford wells - average initial production rate of over 1,400 boepd.

• Technical improvements - fracture stimulation and well completion techniques progressively refined.

• Fracture stimulation design of Texon’s two most recent wells benefitted from the experience gained on the first two wells.

• Two most recent wells – are guide to Eagle Ford productivity in Texon leases.

• Future wells could produce 550,000-600,000 barrels of oil equivalent (80 acres/well).

• Under a full development scenario, there is potential for 114 Eagle Ford well locations (24 joint venture wells at various working interests).

• Resource potential to Texon’s working interest of 59 million boe.

April 2012

13

5th Eagle Ford Well

• Begin drilling – May / June 2012

• On production – Q3 / 2012

April 2012

14

Eagle Ford Monetization

• RBS Morgans and Albrecht & Associates, Inc.

• Seek potential buyers

• All or part of Texon’s Eagle Ford Project

April 2012

15

Other Oily Multi-well / Resource Projects

• Mosman / Rockingham Olmos

• Several others being investigated

• Must be material to Texon

April 2012

16

Mosman / Rockingham Olmos

• Oil

• Texon WI – 95-100%

• 30 40 acre well locations

• 3.0 – 3.5 mmboe low risk potential to Texon WI

• Similar in size to Leighton Olmos

• First well May/June 2012

• Two or three more wells

• Confirm Resource for Texon

• Monetize

April 2012

17

Gas and Gas Liquids Projects

• Seven Prospects

• Combined 20-25mmboe

• Mostly gas

• Require higher gas prices

• Warehoused

April 2012

18

Mid 2012 - Monetise Eagle Ford Project - Recycle capital

• Leighton Olmos Sale - bolstered Cash - ca. US$27 Million (end Q1/12)

• 5th Eagle Ford well - May/June 2012

• EFS Transaction - mid 2012- shareholder return - capital for new value accretion- shareholder approval – Q3/12

April 2012

19

Forward Plan

1. Emphasis – oily Multi-well / Resource Projects

2. Mosman / Rockingham Olmos Oil Project – Drill / Prove / Monetize

3. Build upon Cliff Foss’ Texas knowledge and experience

4. Re-leverage retained capital into other oily Multi-well / Resource projects

5. Spread Texon equity to reflect project materiality and technical attributes

6. Warehouse uneconomic gas projects

7. Get better value from 3D / 2D Seismic database

8. Periodically monetize Project success

9. Target 2-3 year cycle of value accretion and returns

April 2012