Texhoma Energy, Inc.
OTC Bulletin Board : TXHE

Texhoma Energy, Inc.

October 24, 2006 08:30 ET

Texhoma Energy, Inc.: Investor Update and Summary of Oil & Gas Projects

HOUSTON, TEXAS--(CCNMatthews - Oct. 24, 2006) - Texhoma Energy, Inc. ("Texhoma") (OTCBB:TXHE) is working with its auditors to update its financial statements in order to comply with reporting requirements so that the Company's shares can be traded again on the OTC Bulletin Board market. As reported in August 2005, the Company has received guidance from the SEC that the Company accounted for the drilling venture in Thailand incorrectly. The subsequent work has been extensive and has resulted in a re-audit of the entire corporate structure that carried out the drilling in Thailand in the beginning of 2005 culminating in the filing of an amended Form 8K on September 20, 2006. The interest in the Thailand exploration venture and the holding companies have long since been relinquished and sold.

The Company is currently preparing amended quarterly reports on Form 10Q-SB for refiling starting from the period December 31, 2004. These quarterly reports contain routine financial information and full disclosure.

In order to provide accurate disclosure to the shareholders and the market in general, the Company would like to summarize that it currently has interests in the following properties:

1. Louisiana Production: The Company has working interests varying from 7.42% to 11.76% in three producing properties: the Barnes Creek Field, the Intracoastal City Field which produce gas and the Edgerly field which produces oil. All of these properties are located in Louisiana and for the month of June 2006, a Net production to Texhoma of 373 MCFD and 49 BOPD was recorded. Net remaining reserves of these fields are estimated by independent engineers at 210 MBBLS and 0.6 BCF. These producing properties are owned by Texaurus Energy, Inc. currently a wholly owned subsidiary of Texhoma which is debt-funded by Laurus Master Fund of New York.

2. Texas Drilling: This year the Company plans to participate in the drilling of four wells, specifically in the Buck Snag Field in Colorado County, TX, the Sandy Point Field and the Manvel Field both in Brazoria County, TX. The No. 1 Schiurring well that recently was completed and reported as being a dual gas discovery has developed mechanical problems causing excessive water production and has now been plugged and abandoned.

3. Louisiana Exploration: As announced last week, the Company has a 16% Working Interest in the Bayou Choctaw Project which has Proven Undeveloped Reserves in addition to exploration targets. The Company's interest in the Clovelly project is 11% and, as with the Bayou Choctaw project, it has both Proven Undeveloped reserves and exploration aspects. A recent well drilled on Clovelly South prospect (the Allain Lebreton No.2 well) had to be plugged and abandoned due to drilling tools that became stuck in the well when a heavy drilling fluid was required to control the gas inflow into the well. Both projects will be pursued with drilling in 2007.

In summary, the Company is receiving cashflow from its producing properties and is focused on projects in the Louisiana and Texas Gulf coast area to build its reserve base. As a matter of normal business planning, the Company has under review a number of new projects and acquisitions, all located in its area of geographic focus. More comprehensive information on the Company's projects can be found on its website.

Texhoma encourages investors and shareholders to visit the Company's website, or the SEC website of www.sec.gov to review the Company's filings, for accurate information on the Company.

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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