Texas Gas & Oil Inc.
TSX VENTURE : TXG

August 31, 2007 15:48 ET

Texas Gas & Oil Inc. Closes Private Placement

BURNABY, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2007) - Gerry Gill, Chairman and CEO of Texas Gas & Oil Inc. (TSX VENTURE:TXG), announces that the Company has raised gross proceeds of $2,745,022.75 through a non-brokered private placement that was announced on February 28, 2007. The funds were raised by way of issuing 1,220.012 Special Warrants at a price of $2.25. Each Special Warrant entitles the holder to exchange the Special Warrant for one fully paid share of the Company upon completion of the Reverse Take Over with Legend Power Systems Inc. or exchange the Special Warrant for one fully paid share of Legend Power Systems Inc. should the Reverse Take Over not be completed. The Company did not pay any finder's fees.

The subscription proceeds are being used to provide Legend Power Systems Inc. for the purchase of title to the patents for the Harmonize, for the RTO and for the working capital required to continue its business plan.

The private placement is subject to acceptance for filing by the TSX Venture Exchange.

This release and referenced materials contain forward looking statements, within the meaning of the "safe-harbour" provisions of the Private Securities Act of 1995, which are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause actual results to differ materially include: rapid technological and/or market changes in the industry including actual electrical billing rates; the adequate protection of the Company's proprietary rights; and other factors described in the Company's regulatory filings. Although we believe the expectations reflected in our forward looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

On Behalf of the Board of Directors,

Gerry Gill, Chairman & Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this Release.

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