TransAmerican Energy Inc.
TSX VENTURE : TAE

TransAmerican Energy Inc.

February 02, 2006 06:00 ET

TransAmerican Energy Plans New Completion on Well in Beauregard Parish

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 2, 2006) - Mr. Ron Hughes, President and Director for TransAmerican Energy Inc. (TSX VENTURE:TAE) ("the Company") announced today that recent tests have confirmed the production as reported in news of the acquisition of three wells in Beauregard Parish, La. (see news release dated October 26, 2005). From Company tests, the three wells flow a combined 32 barrels of oil per day, together with approximately 120 barrels of water per day. Since purchasing interest in this field, the Company has sold approximately 1500 barrels of oil at an average of $60 per barrel.

In further news, the Company announced that it has recently acquired land title to three acres on which a salt water disposal well is situated and is in the process of securing a permit to allow injection of the salt water in the field. Injection of water in the field will lower operating expenditures as trucking and disposal fees to a commercial salt water disposal well will no longer be necessary.

Geological studies by Gilbert Talafuse Petroleum Geologist, have further resulted in a recommendation to recomplete one of the wells in an apparent virgin formation above the current perforations. According to the studies, this formation could yield 150,000 barrels of recoverable oil in this one well from this formation alone. Other evidence indicates that there may be additional productive formations in all of the wells. Studies are continuing to evaluate all potential productive zones. Based on the above referenced recommendations, the Company has engaged a workover rig to commence work on the well later this month.

The reserve data disclosed, while generally accepted by the Company's management, that information may not be in compliance with NI 51-101 standards of disclosure for oil and gas activities, and therefore should not be relied on to ascertain the ultimate reserves that may or may not be produced in the well.

ON BEHALF OF THE BOARD

Ron Hughes, President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • TransAmerican Energy Inc.
    Ron Hughes
    President
    (604) 718-2800
    (604) 718-2808 (FAX)