TransAmerican Energy Inc.
TSX VENTURE : TAE
FRANKFURT : YQJ

TransAmerican Energy Inc.

September 02, 2009 18:09 ET

TransAmerican Energy Inc.: Disposition of Mississippi Assets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 2, 2009) - TransAmerican Energy Inc. (TSX VENTURE:TAE)(FRANKFURT:YQJ) (the "Company" or "TransAmerican") announces that it has reached an agreement with Odyssey Petroleum Corp. (TSX VENTURE:ODE) ("Odyssey"), pursuant to which the Company has agreed to sell all of its Mississippi oil and gas assets to Odyssey (who is the operator of the assets) in consideration for the payment to the Company of $3,017,300 (the "Sale").

Upon completion of the Sale, the Company's secured lender, Trafalgar Capital Specialized Investment Fund, FIS ("Trafalgar"), has agreed to release the Company from its indebtedness pursuant to two Convertible Debentures issued by TransAmerican to Trafalgar in 2007 and 2008 (see the Company's News Releases dated December 11, 2007 and March 8, 2008). As at July 31, 2009, TransAmerican was indebted to Trafalgar for the total amount of $3,017,300.

The Sale of the Mississippi assets to Odyssey will significantly reduce the Company's debt load and monthly payment obligations of over $160,000. The Company will maintain its oil and gas assets in Texas, Louisiana, Oklahoma and Alberta.

ON BEHALF OF THE BOARD

Jurgen Wolf, director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • TransAmerican Energy Inc.
    Jurgen Wolf
    Director
    (604) 718-2800
    (604) 718-2808 (FAX)