Texhoma Energy, Inc.
OTC Bulletin Board : TXHE

Texhoma Energy, Inc.

April 05, 2006 09:30 ET

Texhoma Completes Acquisition of Oil and Gas Production

HOUSTON, TEXAS--(CCNMatthews - April 5, 2006) - Texhoma Energy Inc. ("Texhoma") (OTCBB:TXHE) is pleased to announce it has completed with Kilrush Petroleum, Inc. ("Kilrush") the acquisition of certain oil and gas producing properties located in Louisiana.

A 7.42% working interest (5.38% net revenue interest) in the Barnes Creek gas field and an 11.76% working interest (8.47% net revenue interest) in the Edgerly oil field have been acquired from Kilrush for a total consideration of $5,225,000, with an effective date of January 1, 2006. The combined current gross production from both fields is approximately 3.6 million cubic feet of gas and 1,000 barrels of oil and condensate per day. The Barnes Creek field, located in Allen Parish, Louisiana, has one producing gas well and covers 320 acres while the Edgerly Field, located in Calcasieu Parish, Louisiana, comprises approximately 800 acres with five producing completions from four wells. Net revenue to the Company from these properties is estimated at about $200,000 per month (before financing costs-see below), depending on the oil and gas prices for the month.

The Company has incorporated "Texaurus Energy, Inc." in Delaware ("Texaurus"), which in turn has entered into an $8.5 million, 36-month Term Note with Laurus Funds of New York. Texhoma has committed to contribute $2 million in equity to the capital of Texaurus. Until payout of the term-loan, Texhoma will receive 20% of Texaurus' net revenue.

Texaurus is an acquisition company actively targeting other oil and producing properties to add to its portfolio.

For further information, please visit www.sec.gov. and view Texhoma's filings.

Safe Harbor Statement: "This News Release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to corporate objectives, projections, estimates, operations, acquisition and development of various interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein."

Contact Information