Texhoma Energy, Inc.

Texhoma Energy, Inc.

August 04, 2006 08:30 ET

Texhoma Energy, Inc.-Clovelly South Well: Running Casing and Drilling Ahead

HOUSTON, TEXAS--(CCNMatthews - Aug. 4, 2006) - Texhoma Energy, Inc. ("Texhoma") (PINK SHEETS:TXHE) announced on June 20, 2006 that drilling of the Allain-Lebreton No. 2 well had commenced. The well is nearing its objective and the operator of the well reported on August 3, 2006 that a "drilling break" was encountered from 14,275 feet to 14,280 feet. A "drilling break" is defined as encountering reservoir quality sand and pressure, in this case, gas is entering the well bore. The operator has raised the mud weight to 12.6 pounds per gallon to contain the pressure and continues circulating gas out of the hole before running 7 inch protective casing. It is anticipated that another 200 feet will be drilled to get through the objective "M" sand.

The Clovelly South prospect is located in Lafourche Parish, Louisiana adjacent to the Clovelly Field, which has produced approximately 35 million barrels of oil and 200 billion cubic feet of gas since its discovery in the 1950s. The prospective size is estimated at over 3.5 million barrels or the equivalent in gas. In the event of a discovery, facilities for the production of the well are available. A discovery could lead to the drilling of several development wells on the 1260 acre property.

Max Maxwell, President & CEO, said, "We are totally committed to delivering the highest value to our shareholders. Opportunity is upon us to benefit from the high oil and gas prices to deliver the best possible returns to our investors."

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."

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