On May 31, 2006, Texhoma Energy, Inc. (the "Company," "we," "us") entered into six (6) participation agreements to purchase various oil and gas leases from Sunray Operating Company LLC ("Sunray"), including: Leases covering approximately 280 acres of land in Colorado County, Texas for total consideration of $100,000. In connection with the purchase, we will acquire an undivided 87.50% interest in the leases, subject to existing overriding royalty interests equal to 28% of 8/8. Additionally, Sunray is entitled to a one-eighth of eight-eights (12.50% of 8/8) working interest, proportionally reduced at payout.