Transco Resources Corp.
NEX BOARD : TRN.H

August 02, 2006 14:31 ET

Transco Resources Corp.: News Release

CALGARY, ALBERTA--(CCNMatthews - Aug. 2, 2006) - Transco Resources Corp. ("Transco") (NEX BOARD:TRN.H) announced that it has received approval by its Board of Directors to proceed with a brokered private placement to raise up to $6,750,000. The Corporation will issue up to 4,500,000 units at $1.50 per unit. Each unit will consist of one common share and one half common share purchase warrant. Each full warrant will entitle the holder thereof to purchase one common share at any time for a period of 12 months following the closing date at a price of $1.75 per common share. The private placement is subject to regulatory approval. The proceeds of the private placement will be used for completion of drilling commitments and for general working capital purposes. Transco will pay a commission of cash and options in relation to this placement. The private placement will close concurrently with the closing of the previously announced combination with Bridge North Sea Limited.

The securities will be subject to a four-month hold period. Upon closing of the transaction with Bridge North Sea Limited and Private Placement, Transco will have up to 36.0 million common shares issued and outstanding.

Transco is also pleased to report that it has filed its disclosure and reports relating to its financial year end of March 31, 2006 and its reserves data and other oil and gas information required pursuant to National Instrument 51-101 of the Canadian Securities Administrators. Copies of these documents may be obtained via www.sedar.com.

Cautionary Statements

Completion of the private placement and the previously announced transaction is subject to a number of conditions, including Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular to be prepared in connection with the private placement and the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Transco should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.




The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.

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