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1st Texas Natural Gas Company, Inc. Announces Acquisition of Over 650 Million in Proven Natural Gas Reserves in Texas

Posted on: Friday, 29 June 2007, 18:05 CDT

1st Texas Natural Gas Company, Inc. (Pink Sheets:FTXN) announced today that it has acquired all of the assets of Universal Energy Resources, Inc., a private energy production company, with 208 gas drilling leases valued in excess of $650,000,000. Located in the heart of the Permian Basin, the leases are located in the 6th largest known oil and gas reserves in the world.

Universal Energy Resources will operate as a wholly owned subsidiary of the 1st Texas Natural Gas Co. Jim Dial who founded Universal Energy Resources has been recruited to head up operations of 1st Texas Natural Gas Co. with the title of President and Chief Executive Officer. Mr. Dial has over 25 years experience in the petroleum industry.

The 208 gas drilling leases have proven recoverable reserves of 109 Billion cubic feet of natural gas based upon an independent expert reserve report. The report was prepared in accordance with Securities and Exchange Commission accounting guidelines.

Mr. Dial stated, "We began drilling in March 2007. We have now drilled 3 gas wells with 100% success. Each well was drilled to average depths of 5,000 feet in the prolific Canyon sandstone formations. The El Paso gas pipeline as well as producers pipeline intersects the property so we have immediate access to market. We have a simple game plan: Drill, drill and then drill some more. I have never believed in wildcat exploration. I believe that the best opportunities are in proven reserves that the big boys have overlooked. We have the right team in place to get the job done."

Each well takes approximately 3-4 weeks to drill and bring on line. Additional drill rigs and crews will be brought online to complete all 208 gas drilling leases in the shortest time possible in order to take advantage of the continued high demand for natural gas.

About 1st Texas Natural Gas Co., Inc.

We are an energy production company with a portfolio of gas drilling leases in Texas. Our proven and recoverable gas reserves are valued at over $650 million. The life of our gas properties is estimated at over 30 year's duration. When you think of "Texas gas" think of 1st Texas Natural Gas Company, Inc. (Pink Sheets:FTXN). For more information visit us at www.1stTexasNaturalGas.com.

Forward Looking Statement

The contents of this Press Release may be deemed to include forward-looking statements within the meaning of United States securities laws and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are only predictions and you should not rely on them. Actual results might differ materially from those projected in any such forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. We cannot guarantee future results, levels of activity, performance or achievements. In evaluating forward-looking statements you should consider various factors including risks inherent in the scrap metal business sector.

Source: Business Wire

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