SOURCE: TX Holdings Inc.

August 24, 2007 09:38 ET

TX Holdings Adds a New Piece to Puzzle With Auzy Acquisition

ABILENE, TX--(Marketwire - August 24, 2007) - TX Holdings Inc. (OTCBB: TXHG) announced today the acquisition of a 25 percent working interest in the producing property named Auzy in Kansas. The company funded this acquisition in part with a combination of cash and stock.

The property was purchased in a partnership with Hewitt Energy Group of Salt Lake City as the company continues to define and expand its ongoing relationship with HEG.

The company is ecstatic to have an interest in a proven, producing property and looks forward to reaping the benefits from Auzy. TX Holdings also indicated that they will have an additional two wells on-line producing at similar rates.

W.A. Alexander, Jr. of Oil & Gas Consulting in Broken Arrow, Oklahoma had the following to say about TX Holdings' new acquisition.

"Yesterday the well produced 74 barrels of oil, continuing to increase toward our original estimate of 75 to 100 barrels per a day. Oil and gas production, as well as a change in fluid levels indicates additional zone(s) contributing to flow. We should have two additional wells on-line very soon (at similar rates). Everything is positive at this point. A greater withdrawal rate should increase oil cut and total oil production," stated Alexander.

About TX Holdings Inc.

TX Holdings is a publicly traded oil and gas production company. The Company's strategy consists of acquiring and developing shallow, low-risk, and high-yield oil and gas leases in West Texas, Kansas, Oklahoma and Louisiana. TX Holdings currently has a working interest in over 100 wells divided between four active projects. For further information, please visit the Company's website at

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