AUSTIN, Texas, Nov. 3 /PRNewswire/ -- Texas American Resources Company ("TARC" or the "Company") today announced that its affiliate TARH E&P Holdings, L.P. ("TARH") completed a new $15 million first lien first out term loan due June 2012. The net proceeds of the term loan will primarily be used to accelerate the Company's development capital expenditure program and to repay accrued interest. In addition, TARH has successfully negotiated an amendment to its existing $160 million first lien term loan with its lenders.

David E. Honeycutt, CEO and President of TARC said, "For the past few months, the tenor of the negotiations with our lenders was constructive with a prevailing spirit of cooperation underlying the eventual outcome. We feel fortunate to now be able to return our entire focus to the execution of the Company's long term business plan. I owe particular gratitude to the Texas American employees, many of whom distinguished themselves over this past year. We have a number of high rate-of-return, organic drilling opportunities that we can immediately pursue with an eye toward increasing production levels and subsequent growth in EBITDAX."

Honeycutt went on to say, "We are excited about the prospects for the future. There are historic opportunities in times of stress in our industry. We hope to put ourselves in a position to capitalize on our abilities, expand our platform and grow our franchise to a whole new level."

ABOUT TEXAS AMERICAN RESOURCES COMPANY

Texas American Resources Company is a privately-held, independent energy company headquartered in Austin, Texas. Since its founding in 1990, TARC has focused on the acquisition and exploitation of proved or near proved properties in Texas and the Rocky Mountain region of the United States.

TARC operates over 400 wells in Texas, Wyoming and Colorado. The Company has a total proved reserve base of 29 MMBOE which is 34% developed and 41% oil and has 42 MMBOE of 3P reserves. The company-wide total net production of approximately 2,500 BOEPD is 39% oil.

LEGAL DISCLOSURE: Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly any express or implied statements concerning future financial condition or operating results. Although Management believes that the expectations reflected herein are reasonable, the matters discussed in this release involve risks, uncertainties, and other factors that may delay, prevent or adversely affect the transaction or the Company's planned activities and operations. There can be no assurance that such expectations will prove correct. All forward-looking statements are expressly qualified by this cautionary statement.

SOURCE Texas American Resources Company