Texas Energy Holdings Announces Formation of High Profile Strategic Advisory Board.

DALLAS -- Energy Investment Firm Also Announces Its $20.5 Million 2006 Drilling Plan for the Barnett Shale and Cotton Valley Field is Exceeding Scheduling Expectations

Texas Energy Holdings, a privately held energy investment firm concentrating in active development of oil and gas fields, has announced the appointment of four top leaders in investment banking, oil and gas, and operational management to its Strategic Advisory Board. The Board will advise Texas Energy Holdings on industry issues and company development as it continues to acquire producing properties, launch drilling projects, increase its involvement in the hedge fund market, and as it continues to build relationships with institutional investors.

Texas Energy Holdings' 2006 drilling plan is ahead of schedule and the company expects to continue moving forward on its $20.5 million commitment in the Barnett Shale and Cotton Valley at an ambitious rate of progress. Texas Energy Holdings has managed working interests in approximately 500 wells and 200 leases in Texas, Louisiana, Oklahoma, Indiana and Illinois, with primary focus on developmental drilling in the blanketed formations in the North Texas Barnett Shale and East Texas Cotton Valley Field.

The following individuals have been appointed to the Strategic Advisory Board:

Mr. Clay H. Womack
    CEO, TIC Capital Markets
    Mr. Clay H. Womack is a leading investment banker in the 1031
    energy and real estate exchange market; he is the Chairman and CEO
    of TIC Capital Markets, Inc., and is the CEO of its NASD member
    subsidiary, Direct Capital Securities, Inc. Mr. Womack is also a
    founding member and Director of the Tenant In Common Association.

    Mr. Gene Washington
    Director of Football Operations, National Football League
    Mr. Gene Washington is the Director of Football Operations with
    the National Football League. He serves on numerous corporate and
    civic boards, including serving as a Director of the former New
    York Bancorp, a NYSE listed company. Mr. Washington is a member of
    the Board of Directors of Goodrich Petroleum, an independent oil
    and gas exploration and production company listed on the New York
    Stock Exchange.

    Mr. Lary Knowlton
    Executive Vice President and Co-founder, Basa Resources, Inc.
    Mr. Lary Knowlton is the Executive Vice President and Co-founder
    of Basa Resources, Inc., a Dallas-based independent oil and gas
    producing company that is the 24th largest producer of oil in
    Texas with 2005 revenues exceeding $135 million.

    Mr. Robert Hussey
    Interim President and CEO, Digital Lightwave
    Mr. Robert Hussey is Interim President and CEO of Digital
    Lightwave, a leading provider of optical networking test equipment
    and technology and a NASDAQ-listed company. Mr. Hussey has served
    as Chief Operating Officer of H.C. Wainwright and Company. He is
    also a member of the Board of Regents for Georgetown University.

"I am impressed with Texas Energy Holdings because of its significant success in drilling and because of its strong relationships with large independents which enables it to consistently acquire economic-producing properties," said Gene Washington, Strategic Advisory Board member and Director of Football Operations with the National Football League. "This is a smart, lean and aggressive young company."

"Texas Energy Holdings is a company of integrity; it has seen remarkable growth, in part, because of its foresight to purchase well-positioned producing properties," said Clay H. Womack, Strategic Advisory Board member and CEO of TIC Capital Markets. "This company is poised for continued success and we are proud to be a part of its development."

"I appreciate the tremendous business, operational and investment acumen and accomplishments of the members of this Advisory Board, and I am pleased for the opportunity to seek their guidance as Texas Energy Holdings continues to exceed revenue and development expectations," said Chad Willis, President of Texas Energy Holdings, Inc. "Texas Energy Holdings is a fast-moving, determined company balanced with an investment platform based on steady revenue growth for us and our partners. We expect our commitment to this strategy to continue providing exceptional results."

In 2006 Texas Energy Holdings has already drilled eight wells in the Cotton Valley and four horizontal wells in the Barnett Shale, with an additional ten wells about to begin drilling before July. As of April 1st, Texas Energy Holdings had designated $8 million in the Barnett Shale and $12 million in the Cotton Valley Region.

"We are pleased to report that our first well in Erath County was commercial and is currently waiting pipeline connection. We have also initiated development of some 1,500 acres within Johnson County," said Casey Ladymon, Vice President of Texas Energy Holdings, Inc. "We expect to continue moving forward ahead of schedule in this second quarter."

About Texas Energy Holdings, Inc.

Texas Energy Holdings is a privately held energy investment firm managing more than $20 million in assets and concentrating in active development of oil and gas fields. Texas Energy Holdings manages national and international institutional and individual clients with emphasis on structuring investment vehicles that enable the average investor to develop an oil and gas portfolio alongside the largest privately owned and publicly traded oil and gas companies. Texas Energy Holdings has managed working interests in approximately 500 wells and 200 leases in Texas, Louisiana, Oklahoma, Indiana and Illinois, with primary focus on developmental drilling in the blanketed formations in the North Texas Barnett Shale and East Texas Cotton Valley Field. For more information please visit: www.tx-energy.com.