TARA Executes New PSC With CNOOC

Texas American Resources-Asia Ltd ("TARA"), an affiliate of Texas American Resources Company, Austin, Texas, has announced that effective June 1, 2007, The Ministry of Commerce ("MOC") of the Chinese government approved TARA's conversion of Block 28/20 from a Geophysical Services Agreement ("GSA") to a Production Sharing Contract ("PSC"). TARA executed the new PSC with its partner, CNOOC, in a formal signing ceremony on April 19, 2007.

TARA plans to shoot an 850 sq. km 3D seismic program in Block 28/20 this summer and hopes to drill a well before year-end.