Third well drilled in North Dakota Lodgepole Reef oil field by TransTexas Gas Corp.

HOUSTON--(BUSINESS WIRE)--Jan. 23, 1997--TransTexas Gas Corporation (NASDAQ NMS: TTXG) said it had drilled its third well in the newly discovered oil field in the city of Dickinson, N.D. The Dinsdale No. 1-3 was drilled to a total depth of 10,768 feet and logged an oil column of 78 feet in a gross interval between 10,350 and 10,600 feet, as indicated by electric logs. The well is expected to be completed and flowing to sales before the end of February.

The Dinsdale No. 1-3 was directionally drilled from essentially the same surface location as two prior wells, the Heart River No. 1 and the Dinsdale No. 2-4, that are currently producing at the maximum allowable of 2,000 barrels of oil per day (Bopd). These two earlier wells drilled in the field flow-tested at rates of 6,836 and 5,544 Bopd, respectively.

TransTexas' oil and natural gas production from the field is flowing to sales into existing commercial pipelines in the area. The company owns an average 62 percent working interest in the field with the balance being held by privately-owned partners. The company also intends to drill two additional prospects in the area, indicated by 3-D seismic information and has permitted locations for drilling. TransTexas and its partners own mineral interests covering approximately 200,000 acres in Stark, Billings and Dunn Counties of North Dakota.

TransTexas Gas is engaged in the exploration, production and transmission of natural gas and oil. The company is now the third largest producer of natural gas in Texas with gross natural gas and oil production capacity, including third-party operated wells, of 800 million cubic feet equivalent per day and over 500,000 net acres currently under lease.

Except for the historical information contained herein, the matters set forth in this news release may contain forward looking-statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as fluctuations in natural gas and crude oil pricing over which the company has no control, the ultimate success of exploration drilling programs, the competitive nature of the oil and gas exploration, development and production industries and the uncertainties associated with the drilling, completing and operating of natural gas and oil wells. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.

CONTACT: TransTexas Gas Corporation

Simon Ward, 281/986-8865

281/987-8600 (fax)