Home           Site Map         Contacts

Symbols: TAE
Energy Inc.



Address: 595 Howe Street Suite 303 Vancouver, British Columbia V6C 2T5 Canada

TransAmerican Closes $900,000 Private Placement


December 7, 2006, Vancouver, British Columbia - TransAmerican Energy Inc. (TSX-V: TAE) (the "Company" or "TransAmerican") announces that its private placement announced in a News Release dated November 9, 2006 was accepted for filing by the TSX Venture Exchange on December 6, 2006. In accordance with the provisions of the Subscription Agreements, on December 6, 2006 the Company issued a total of 15,000,000 Units at $0.06 per Unit (the "PP Units"), each PP Unit consisting of one common share and one (1) share purchase warrant, each warrant entitling the holder to purchase one (1) additional common share at a price of $0.10 per share on or before December 5, 2007 provided that if over a period of twenty consecutive trading days commencing four months after the issue of the share purchase warrants the weighted average closing price of the Company's shares as traded on the Exchange exceeds $0.15, then TransAmerican may give notice in writing to the holders of the share purchase warrants that the share purchase warrants shall expire at 5:00 p.m. (Vancouver time) on the 20th business day following delivery of such notice unless exercised by the holder of the share purchase warrants prior to such time (the "Private Placement").

The Company also paid a total of $11,793 cash as a finder's fee in connection with the private placement, representing 10% of the gross proceeds received by the Company from certain subscribers.

All of these shares and any shares issued on exercise of the warrants (the "Securities") will be subject to a hold period under applicable Canadian securities laws expiring on April 7, 2007, and will be subject to such further restrictions on resale as may apply under applicable foreign securities laws.

Two of the directors of the Company have together directly and indirectly subscribed for a total of 1,500,000 Units, and upon closing of this private placement, those related parties will therefore acquire an additional 1,500,000 shares in the capital stock of the Company which will increase their pro rata shareholdings in the Company (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, with the value of the Related Party Transaction being less than 25% of the Company's market capitalization, is exempt from the formal valuation and minority shareholder approval requirements of the Ontario Securities Commission's Rule 61-501.

As previously disclosed, proceeds from this private placement will be used for exploration and development of the Company's oil and gas properties located in Mississippi and Louisiana, and for general working capital.


Ron Hughes, President


TransAmerican Energy Inc.
Ron Hughes, President
Toll Free: 1-888-945-5056
[email protected]

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this Press Release.

Home       About Us       Operations       Exploration       Investor Relations       News       Contact Us      Privacy Policy
Copyright 2006 © TransAmerican Energy Inc. All rights reserved.