Texon Reports Fatality at Tx. Well Site

Texon Petroleum Ltd. advised that an accident, involving a single fatality, has occurred at the Peeler #4 well site in connection with operations involved in the exploration of prospects in the Olmos formation, McMullen County, Texas and in which such area the Company's wholly owned subsidiary, Texoz E&P II, Inc. (Texoz), is a 50 percent working interest owner. The accident occurred in the early morning hours (Houston time) of January 23, 2012.

Drilling operations at the Peeler #4 well site are being conducted by Aurora Resources Corporation (ARC), a Texas company contracted by Texoz. The deceased was an employee of a third party engaged by ARC in furtherance of such operations.

The incident has been investigated by the McMullen County Justice of the Peace and the McMullen County Sheriff who have determined that the incident was an accident. Formal reports from each of those officials are pending.

As is customary in the United States with respect to such incidents, this accident is also being examined by the U.S. Occupational Safety & Health Administration (OSHA). A final report from OSHA is expected in due course. OSHA has completed its initial inspection of the accident scene and its preliminary interviews of relevant personnel and has released the well site back to ARC. Normal operations have resumed.

Requisite notifications have been delivered by Texoz and ARC to their respective insurance carriers, with whom appropriate coordination will be maintained.


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