Texhoma Participates in the Bayou Choctaw Project

Texhoma Energy has entered into an agreement to acquire a 25% working interest in the Bayou Choctaw project. Texhoma has agreed to pay its share of the investment cost and participate on ground-floor terms in acquiring a 3-D seismic survey. The Company then has the option to participate in the first two wells and carry the promoting parties through the drilling of those wells to "casing point" on the basis of paying for 1/3rd of the cost to earn its 25% working interest.

The property is located in Iberville Parish, Louisiana and there are development and exploration aspects to the project. Proven Undeveloped Reserves have been identified in the "Bolmex" and "Nonion struma" geological zones at a depth of approximately 11,500 ft. An independent reserve report prepared by R. A. Lenser & Associates for Texhoma attributes an estimated 65 MBBLS of oil and 359 MMCF of gas of proven undeveloped reserves net to Texhoma's interest.

In the event of a discovery, facilities for the production of the wells and export pipelines are available. A discovery could lead to the drilling of additional wells.