**Exhibit    10.32**

**COOPERATION      AGREEMENT AND**

**MUTUAL      RELEASE**

**1.           Facts.**

|   | **1.1** | Reiersen                was previously engaged as a consultant to Texhoma from about May                2006 to                about March 2007 (the “Service                Period”). |
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|   | **1.2** | On                June 1, 2006, Reiersen was granted an aggregate of 1,000,000 Non-qualified                Stock Options at an exercise price of $0.13 per share, which were                to vest                to Reiersen at the rate of 250,000 shares every three months (the                “Options”). |
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|   | **1.3** | Reiersen                claims that he is owed compensation from Texhoma in back consulting                fees                and related expenses (the “Consulting                Fees”). |
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**2.**
**Settlement.**

|   | **2.1** | Reiersen                agrees that in consideration for Texhoma agreeing to the terms and                conditions of Section 3.2 below; Reiersen agrees to the terms and                conditions of Section 3.1 below (the “Texhoma                Consideration”). |
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|   | **2.2** | Texhoma                agrees that in consideration for Reiersen agreeing to the terms and                consideration of Section 3.1 below,; Texhoma agrees to the terms                and                conditions of Section 3.2 below (the “Reiersen                Consideration”). |
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|   | **2.3** | Reiersen                agrees that he will receive valid consideration from the Texhoma                Consideration. |
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|   | **2.4** | Texhoma                agrees that it will receive valid consideration from the Reiersen                Consideration. |
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**3.           Release.**

|   | **3.1** | In                consideration of the agreements and covenants set forth herein above                and                below, the sufficiency of which is hereby acknowledged and confessed,                Reiersen, for himself, his agents, servants, attorneys, employees,                successors and assigns, to the extent legally allowed, hereby                covenants and agrees as                follows: |
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|   | **3.1.1** | That                Reiersen hereby releases, acquits and forever discharges Texhoma,                its                current and former agents, officers, directors, servants, attorneys,                representatives, successors, employees and assigns (the “Texhoma Parties”)                from any and all rights, obligations, claims, demands and causes                of                action, whether in contract, tort, under state and/or federal law,                or                state and/or federal securities regulations, whether asserted or                unasserted, whether known or unknown, suspected or unsuspected, arising                from or relating to the Service Period, Texhoma and/or the Texhoma                Parties                in general, for or by reason of any matter, cause or thing whatsoever,                including all obligations arising therefrom, and omissions and/or                conduct                of Texhoma or the Texhoma Parties, and/or Texhoma’s former or current                agents, attorneys, servants, representatives, successors, employees,                directors, officers and assigns, relating directly or indirectly                thereto                other than as provided in 3.1.2. |
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|   | **3.1.2** | That                Reiersen hereby assigns the rights to any and all claims, demands                and                causes of action, whether in contract, tort, under state and/or federal                law, or state and/or federal securities regulations, whether asserted                or                unasserted, whether known or unknown, suspected or unsuspected, arising                from or relating to any former officers or Directors of Texhoma,                or any                predecessor company, to Texhoma (the “Assigned                Claims”). |
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|   | **3.1.3** | Reiersen                agrees to cooperate with Texhoma, to advise Texhoma and to respond                truthfully and to the best of his knowledge and ability to any and                all                questions and reasonable tasks requested of Reiersen by Texhoma until                sixty (60) days from the date this Agreement is executed (the “Cooperation                Deadline”); provided however that, Reiersen further agrees to cooperate                fully and to the best of his ability in connection with all reasonable                requests from Texhoma following the Cooperation Deadline in connection                with and pursuant to the litigation of, resolution of and/or arbitration                of any of the Assigned Claims. |
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|   | **3.1.4** | Reiersen                agrees that any and all of the Options which he vested have previously                expired unexercised and that he is relinquishing all rights to the                Options                in connection with his entry into this                Agreement. |
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|   | **3.1.5** | Reiersen                agrees that Texhoma shall owe him no rights to contribution and/or                indemnification in connection with his service to Texhoma as a Consultant                following the Parties entry into this Agreement, for any matters,                claims,                whatsoever, in connection with any cause of action, lawsuit, or complaint                of any kind brought by any current or former shareholder of Texhoma,                and/or current or former officer or Director of                Texhoma. |
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|   | **3.1.6** | Reiersen                agrees that other than the Reiersen Consideration (defined below)                to be                paid to Reiersen in connection with his entry into this Agreement                and                agreeing                to the terms of this Agreement, Texhoma shall not owe him any other                Consulting Fees, reimbursements, fees, payments or consideration                of any                kind whatsoever subsequent to the Parties entry into this Agreement,                and                that Reiersen’s claim for Consulting Fees shall be satisfied in                full. |
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**                     3.2**

|   | (a) | Pay                Reiersen $2,500 within ten (10) business days of the Parties entry                into                this Agreement; and |
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|   | (b) | To                issue Reiersen 250,000 restricted shares of Texhoma’s common stock in the                name of Terje Reiersen, at the following address _________________,                within                ten (10) days of the Parties entry into this Agreement (collectively                with                (a) above, the “Reiersen                Consideration”). |
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**4.           Return      of the Texhoma Materials.**

**5.           Miscellaneous.**

|   | **5.1** | **Termination                of All Previous Agreements****.**  All                previous agreements among the Parties, if any, and any and all related                agreements and obligations are hereby terminated without further                rights,                obligations or liabilities of any Party                thereunder. |
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|   | **5.2** | **No                Other Cause of Action****.**  The                Parties are not aware of any claims not being released herein against                them. |
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|   | **5.3** | **Capacity                and Authorization.**  The Parties to this Mutual                Release further represent that                they have read it in full before its execution and that they fully                understand the meaning, operation and effect of its terms.  Each                individual signing this Mutual Release warrants and represents that                he or                she has the full authority and is duly authorized and empowered to                execute                this Mutual Release on behalf of the Party for which he or she                signs. |
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|   | **5.4** | **Assignments.**  Reiersen                represents that he has not assigned, in whole or in part, any claims,                demands and/or causes of action against Texhoma to any person or                entity                prior to his execution of this Mutual Release.  Texhoma                represents that it is not aware of any assignment, in whole or in                part,                any claim, demand and/or causes of action against Reiersen to any                person                or entity prior to its execution of this Mutual                Release. |
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|   | **5.5** | **Binding                Effect.**  This Mutual Release shall be binding on                and inure to the benefit of the Parties and their respective heirs,                successors, assigns, directors, officers, agents, employees and personal                representatives. |
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|   | **5.6** | **Modification.**  No                modification or amendment of this Mutual Release shall be effective                unless                such modification or amendment shall be in writing and signed by                all                Parties hereto. |
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|   | **5.7** | **No                Admission of Liability.**** **Each Party                acknowledges and agrees that this Mutual Release is a compromise                of                disputed claims and neither this Mutual Release, nor any consideration                provided pursuant to this Mutual Release, shall be taken or construed                to                be an admission or concession by either Reiersen or Texhoma of any                kind                with respect to any fact, liability, or                fault. |
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|   | **5.8** | **Entire                Agreement.**  This Mutual Release constitutes the                entire agreement between the Parties pertaining to the subject matter                hereof and supersedes all prior and contemporaneous agreements,                understandings, negotiations and discussions, whether oral or written,                of                the Parties in connection with the subject matter                hereof. |
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|   | **5.9.** | **Interpretation.**  The                interpretation, construction and performance of this Mutual Release                shall                be governed by the laws of the State of Texas.  Whenever used                herein, the singular number shall include the plural, the plural                shall                include the singular and the use of any gender shall be applicable                to all                genders. |
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|   | **5.10.** | **Faxed                Signatures****.**  For purposes of this                Mutual Release a faxed signature shall constitute an original                signature. |
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|   | **5.11.** | **Execution.**  This                Mutual Release may be executed in several counterparts, each of which                shall be deemed an original, and such counterparts taken together                shall                constitute but one and the same Mutual Release.  A photocopy of                this Mutual Release shall be effective as an original for all                purposes. |
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**IN      WITNESS WHEREOF**

**                                                                                     Texhoma Energy, Inc.**

**Terje      Reiersen:**

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