Texon Energy Corporation, Lonestar Petroleum Corporation, Tom Miller, Nicholas Bradley, Bill Smith, and Sam Lee

Litigation Release No. 17195 / October 17, 2001

SECURITIES AND EXCHANGE COMMISSION v. TEXON ENERGY CORPORATION, LONESTAR PETROLEUM CORPORATION, TOM MILLER, NICHOLAS BRADLEY, BILL SMITH, and SAM LEE (CV-01-08921 MMM (RZx))

On October 16, 2001 the Commission filed an application for an order to enforce investigative subpoenas served on Texon Energy Corporation (Texon), Lonestar Petroleum Corporation (Lonestar), and four Texon employees: Tom Miller, Nicholas Bradley, Bill Smith, and Sam Lee. The subpoenas sought documents and testimony from Texon and Lonestar relating to Texon's offering of unregistered securities and sought testimony from Miller, Bradley, Smith and Lee related to their activities as sales agents for securities issued by Texon, a Nevada corporation headquartered in Las Vegas.

Texon, Lonestar and the four individuals have not complied with the subpoenas issued by the Commission. In its motion, the Commission argues, among other things, that Texon, Lonestar and the four individuals have no valid justification for their failure to comply. A hearing on the Commission's motion has not yet been scheduled.