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TBX Resources Inc. Announces Spin-Off of New Drilling Company.

Business Editors

DALLAS--(BUSINESS WIRE)--July 10, 2001

TBX Resources Inc. (OTCBB:TBXR) announced today the formation of GULFTEX Drilling Inc., a new drilling company that is a wholly owned subsidiary of TBX Resources Inc., to be spun off to TBX's shareholders. The spin-off will be initiated by a stock dividend to existing TBXR shareholders of record as of August 15, 2001 whereby one share of GULFTEX common stock will be distributed for every five shares of TBXR owned. GULFTEX Drilling Inc. expects to actively pursue the acquisition of three drilling rigs and one rework rig.

TBX Resources Inc. also announced today that they have contracted to acquire 100% of the Working Interest with a related 75% Net Revenue Interest in leases covering 3,363 acres in the Barnett Shale in Montague County, Texas from American West Resources Inc. The Barnett Shale development project consists of as many as 30 wells potentially to be drilled over the next 24 months. The drilling rigs are expected to be on location in the Barnett Shale field as soon as GULFTEX completes the acquisition of the rigs. According to American West Resources Inc., projected reserves for these leases may reach 1.5 BCF (billion cubic feet) per well. Based on that projection, the potential reserves could be as high as 45 Billion Cubic Feet of Gas to be developed throughout the life of the project. According to TBX's accountants report, the Pro Forma numbers could possibly be as much as $70 Million in revenue to TBX Resources Inc., over the life of the project, although no assurances can be made that these leases will live up to TBX's expectations. An option agreement was executed to acquire an additional 7,000 acres to further develop the Barnett Shale in the same area of Montague County, Texas.

Mitchell Energy & Development Corp. announced on June 14th that they have drilled nearly 700 wells in the Barnett Shale since 1990 and attributes a 38% increase to their bottom line for 2001 due to their Barnett Shale success. They recently announced plans for the drilling of 1,180 additional wells over the next 4 years, with the current 55-acre spacing. That activity, along with drilling by other producers, have expanded the area's previously proven limits by more than 50% to cover 120,000 net acres, officials said.

This release may contain certain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which reflect the views of TBXR's management with respect to future events. These statements are subject to uncertainties and other factors that could cause actual results to differ materially from the statements made. Readers are cautioned not to place undue reliance on any of these forward looking statements since there can be no assurances that the forward looking information contained herein will in fact transpire.

NOTE to U.S. Investors -- The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to discuss only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Certain terms used such as "probable" and "possible" are terms that the SEC's guidelines strictly prohibit issuers from including in filings with the SEC. U.S. investors are urged to review all public filings made by public companies.
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Publication:Business Wire
Date:Jul 10, 2001
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