TransAmerican Closes $1.5M Convertible Debenture

 

(December 11, 2007) – TransAmerican Energy Inc. (TSX-V: TAE) (FSE: YQJ;) (the “Company” or “TransAmerican”) is pleased to announce that the TSX Venture Exchange accepted for filing a $1.5M Convertible Debenture previously announced in TransAmerican’s News Release dated November 8, 2007.
Accordingly, on November 30, 2007, the Company issued the $1.5M Convertible
Debenture, which matures 30 months from closing. On or after April 1, 2008, the
Company can convert the Debenture into common shares of the Company based on the market price of the Company’s shares at the date of conversion, provided the market price is $0.05 or greater and provided further that if the conversion price is 120% of $0.15 in the first two years and $0.165 in the last six months, the Company can only convert with the consent of the lender, Trafalgar Capital Specialized Investment Fund, FIS. Interest is payable at the rate of 10% per annum, payable monthly, plus a redemption rate surcharge of 12.5% on the principal amount being redeemed. Refer to the November 8, 2007 News Release for further particulars.
Any shares issued on conversion of the Debenture will be subject to a hold period under applicable Canadian securities laws expiring on April 1, 2008, and will be subject to such further restrictions on resale as may apply under applicable foreign securities laws.
Proceeds from the Debenture financing will be used for general working capital and to drill and develop Oil and Gas prospects in Louisiana and Mississippi.
Please visit the company’s website at www.transamericanenergy.com

ON BEHALF OF THE BOARD

Ron Hughes, President

 

CONTACT:
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.