news115 CC 25-Jan-06 at 15:04:00 15:15
TransAmerican Completes South Texas Joint Venture
Symbol: TAE
Industry: OIS
Subject: JVN
NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: TRANSAMERICAN ENERGY INC.
TSX VENTURE SYMBOL: TAE
JANUARY 25, 2006
TransAmerican Completes South Texas Joint Venture
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2006) - Mr. Gilbert
Talafuse, Geologist Director of Geology for TransAmerican Energy, Inc.
(TSX VENTURE:TAE) ("the Company") announces that the Company has finalized
agreements and has closed financially to begin drilling and exploring for
natural gas and oil in South Texas US. In September of 2005, the company
entered into a joint venture agreement with Ranier Exploration Texas LLP,
a Texas Partnership ("Ranier"), located in Houston whereby TransAmerican
committed to fund the leasing of highly prospective oil and gas properties
in Willacy County, Texas. All prospects are the product of proprietary
three dimensional seismic. By this agreement, the Company earns twenty
percent of all rights to the prospects. To date the Company has leased
roughly 1000 mineral acres which covers two drilling ventures which are
named Tenerias North and Paso Real Fields. Both are medium depth
prospects, 8000-9000', and are prospective in multiple Miocene Sand pays.
Ranier's geologists and engineers estimate the potential reserves for
Tenerias North at 6.5 Billion Cubic Feet of natural gas and 50,000 bbls of
condensate and for Paso Real a reserve potential of 5 Billion Cubic Feet
of natural gas and 40,000 bbls of condensate.
This week, The Company and Ranier, closed an agreement with Houston based
Fortune Exploration whereby Fortune Exploration agreed to re-imburse the
Company it's lease costs and assume all future costs to drill, complete
and equip both wells carrying TransAmerican and Ranier for a combined 15%
working interest. The potential future net income potential after royalty
and production taxes is estimated at USD $2,250,000 to TransAmerican's
interest. Drilling is expected to commence within 45 days.
The reserve data disclosed for the Tenerias North and Paso Real Fields was
received from the Company's joint venture partner Ranier Exploration Texas
LLP, and while generally accepted by the Company's management, that
information may not have been in compliance with NI-51-101 Standards of
Disclosure for oil and gas activities, and therefore should not be relied
on to ascertain the ultimate reserves that may or may not be produced in
the Tenerias North and Paso Real Fields. The company is currently
evaluating additional