SOURCE: Cantex Energy Corp.

April 19, 2006 09:30 ET

Cantex Energy Corp. to Raise $500,000 in Private Placement at $0.50 per Share and Agrees to Farm Out 1/4 of Its Interest in the Big Canyon Ranch Project

SAN ANTONIO, TX -- (MARKET WIRE) -- April 19, 2006 -- Cantex Energy Corp. (OTC: CTXE) is pleased to announce that the Board of Directors has authorized an equity financing of $500,000 through a non brokered private placement of its securities to a private investor. The financing is expected to be comprised of 1,000,000 shares of restricted common stock at the price of $0.50 per share and is expected to be completed within ten business days.

In addition, management is pleased to announced today that it has entered into an agreement with the same private investor to farm out 1/4 of its interests acquired pursuant to its Participation Agreement with Big Canyon Energy LLC ("BCE"), a Texas limited liability company, for the right to participate in the exploration and development of a total of Forty-Eight Thousand Six Hundred and Forty-Four (48,644) acres of land located in Terrell County, Texas.

The Farm-Out Agreement calls for the Investor to pay 30% of Cantex's own working interest cost in order to earn a 25% working interest in the play.

The placement is designed to strengthen the Company's balance sheet and is expected to be used to finance the Company's upcoming capital expenditures including its share of the Big Cannon Geophysical operation that shall include up to 40 miles of seismic activity. The Geophysical work will be operated by Providence Technologies Inc. that has over 25 years of experience in the area. In addition, Providence Technologies Inc. has designed and licensed to BCE a three dimensional (3-D) and Two Dimensional (2-D) swath Seismic imaging proposal for the Project designed to extend the Val Verde Seismic Imaging Methodologies through the Big Canyon Project area. Permitting and surveying is now complete and the seismic crews will commence a forty-day scheduled shoot next month.

By way of background, the Project is located in the sparsely explored portion of the prolific Val Verde Basin and is located approximately 15 miles SW of the estimated leading edge of the Ouachita overthrust and another 15 miles NE of the axis of the Val Verde Basin. The project is mapped on the basis of available well control and reprocessed seismic data, identifying four prospects with productive potential for natural gas and condensates, including the Ouachita thrust, the Wolfcamp Sands, the thrusted Strawn play and the deeper Ellenberger. Significant hydrocarbon discoveries have been made in the Val Verde Basin in the West Texas area including three giant gas structures, namely the Puckett, Grey Ranch and Brown Basset fields that have produced over 13 tcf of gas to date.

Topography in the area has challenged new major discoveries, but modern advancements in the form of relatively low cost 2-D swath technologies are now capable of extending the limits of resolution producing high quality 3-D images. Management believes this to be an exceptional risk/reward opportunity for its shareholders.

Pursuant to the original Participation Agreement with BCE, Cantex Energy was to pay $500,000 towards the $1,600,000 Geophysical program, but with the new Farm-Out, the Company will only pay $333,333. The Company and its partners anticipate a final interpretation and evaluation of the project area in July 2006 with a view to commence test well drilling immediately there after. Cantex will thereby have the right to a 31% working interest in all four potential plays with an option to participate up to a 51% working interest, less the 1/4 Farm out interest announced today.

Trace Maurin, President of Cantex, commented, "With the completion of the private placement the Company will be able to meet its commitments to delineate the productive potential and structural highs within the Project Area and earn its working interest in the development of a play that is expected to contain over a TCF potential."

Cantex Energy Corp. is an independent, managed risk, oil and gas exploration, development, and production company headquartered in San Antonio, Texas. The Company's additional focus is the optimal exploitation and development of approximately 1,200 acres known as the West Ant Hills Prospect located in Niobrara County Wyoming.

Cantex Energy Corp. is a Non-Reporting Company, quoted on the Pink Sheets, having filed a Form 211 pursuant to Rule 15c211 under the Exchange Act, with the NASD Compliance Unit. See for real time quotes, how to trade pink sheet stocks, how to protect yourself and additional stock information.

Purchasing shares in Cantex Energy Corp. involves a speculative investment with substantial risks, and although the Company intends to use its best efforts to enhance the value of the Shares, there is no assurance that the Company's operations will be successful For more information about Cantex Energy Corp. (OTC: CTXE) please contact Deborah Walters, Phone: 877-332-2875, ext. 501 or visit their website at

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions in the Private Securities Legislation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Cantex Energy's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things: the potential that no commercial quantities of oil are found or recoverable, the price of oil and gas, geological problems that prevent us from reaching drilling targets and specific risks such as the Company's ability to raise financing and risks inherent in Cantex Energy's operations. These and other risks are described in Cantex Energy's Form 15c211 and other filings with the NASD and Securities and Exchange Commission.

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