News!
TX Holdings Completes Acquisition of 24,000,000 Barrel (est.) L. Williams Leases
MIAMI BEACH, Fla., Aug 09, 2006 (BUSINESS WIRE) -- TX Holdings, Inc. (Pink Sheets:TXHG) is extremely pleased to announce its acquisition of the Louie Williams Leases in Callahan County, TX. The Company has completed the purchase of the working interest on the lease it previously acquired an option to purchase.
TX Holdings, Inc. worked diligently to close the Option it had purchased but was unable to reach a mutual agreement with the seller. On August 2, 2006 the Leasehold interests were auctioned by the Operator for unpaid obligations and TX Holdings was the successful bidder purchasing these leases through a trustee's foreclosure sale in Callahan County, Texas for $68,000. The Williams Leases contain reserves that have been previously estimated to be 24,000,000 barrels of oil recoverable, based on original studies done by the U.S. Dept. of Commerce (U.S. Dept. of Commerce) and have since been updated by licensed geologist Cesar Orosco, Lic. 28883-4 American Assoc. of Petroleum Geologist.
The Company's immediate goal regarding the leases will be to assess and implement the optimum usage of the existing field infrastructure. This overall strategy will concentrate on bringing all capable production wells on line prior to embarking on the development drilling phase of operations. In addition to the infrastructure installations, a multiple rig work-over program will be implemented to insure that all wells are producing at their maximum efficient rates, according to Mr. Bill Alexander, the Company's newly appointed COO, formerly of Kirby Exploration Company (NYSE:KEX) and Shell Oil (NYSE:RDS-A).
As previously stated, funds from the Private Placement will be utilized in part for this and other lease acquisitions and for the recompletion and work-overs on the Williams, Parks, and Contract Area 1 leases.
Mr. Mark Neuhaus, Chairman and President of TX Holdings, commented, "the acquisition of these leases has been a priority of the Company for the last several months, and I am pleased that we have been able to finally acquire them on these terms. We look forward to brining the wells to full production capacity as soon as possible and returning value to our shareholders."
About TX Holdings, Inc.
TX Holdings Inc. is an emerging oil and gas exploration, development and production company, focusing on opportunities in primarily the Eastland and Callahan counties in Texas. TX Holdings is currently exploring a number of potential acquisition targets in the region and hopes to announce them soon.
Safe Harbor Statement
The information provided in this Press Release does not constitute an offer or a solicitation of an offer for the purchase or sale of any shares or other securities of TX Holdings, Inc. There are substantial risks associated with investing in development stage energy exploration companies. No securities commission or similar authority has in any way approved any of the information contained in this press release.
Forward-looking statements: This press release and other statements by TX Holding Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," or similar expressions.
SOURCE: TX Holdings, Inc.
CONTACT: TX Holdings, Inc., Miami Beach
Frank Shafer, 586-354-4242
txholdings.com
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