Texhoma Energy, Inc.
OTC Bulletin Board : TXHE

Texhoma Energy, Inc.

October 19, 2006 08:30 ET

Texhoma Energy, Inc.: Bayou Choctaw Project

HOUSTON, TEXAS--(CCNMatthews - Oct. 19, 2006) - Texhoma Energy, Inc. ("Texhoma") (OTCBB:TXHE) announced on May 2, 2006 that it had acquired a 25% interest in the Bayou Choctaw Project.

The project is located in Iberville Parish, Louisiana and there are development and exploration aspects to the project, including Proven Undeveloped Reserves (PUDs) in the "Bolmex" and "Nonion Struma" geological zones.

In July, 2006, the Company increased its working interest (WI) to 41.667% and also agreed to divest a 25% WI to Morgan Creek Energy Corp. The consideration for the divestment was $250,000 and 200,000 restricted shares.

The operator is currently designing the 3D-seismic program to assess the exploration aspects of the property. The shoot will be done in the first quarter of 2007 with drilling to follow interpretation. The Company is currently considering options to accelerate the development drilling prior to the seismic data being available.

Mr. Max Maxwell, President & CEO of Texhoma, comments, "With its proven reserves we consider the Bayou Choctaw project one of the cornerstone assets of the Company. We are managing our risk profile and raising money by divestment."

It has come to the attention of Texhoma's management that information is being distributed about Texhoma by third parties that is not authorized, sanctioned or paid for by the Company. Texhoma cautions investors not to rely on such information and we encourage investors and shareholders to visit the Company's website, or to the SEC website of www.sec.gov to review the company's filings, for accurate information on the Company.

Texhoma is committed to the application of innovative technologies and strong management skills towards the discovery and development of a diverse portfolio of high value, low risk oil and gas projects. The company is actively pursuing opportunities in Texas in and Louisiana.

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." The Company takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties that is not sanctioned by the Company.

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