Exhibit 99.2 | |||
TXCO's IPAA - San Francisco | |||
Slide 1 - Multi-Play, Multi-Pay in the Maverick Basin | |||
Slide 2 - Corporate Information | |||
- Corporate Headquarters: The Exploration Company; 500 North Loop 1604 East, Suite 250; | |||
- Contacts: Roberto R. Thomae, VP-Capital Markets, bthomae@txco.com | |||
- TXCO - NASDAQ Listed | |||
- Forward-Looking Information - Information presented herein which is not historical, including | |||
statements regarding TXCO's or management's intentions, hopes, beliefs, expectations, representations, projections, estimations, plans or predictions of the future, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include those relating to estimated financial results, or expected prices, production volumes, reserve levels and number of drilling locations. It is important to note that actual results may differ materially from the results predicted in any such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. More information about potential factors that could affect the company's operating and financial results is included in TXCO's annual report on Form 10-K for the year ended December 31, 2002, and its Form 10-Q for the quarter ended March 31, 2003, and June 30, 2003. These reports and TXCO's previously filed documents are on file at the Securities and Exchange Commission and can be viewed on TXCO's website at www.txco.com, copies of which are available from the Company without charge. | |||
Slide 3 - TXCO Snapshot | |||
- Nasdaq Smallcap - TXCO | |||
- Common Shares - 22.1 million | |||
- Preferred Shares - 16,000 | |||
- Founded - 1979 | |||
- Headquarters - San Antonio, Texas | |||
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 4 - TXCO Capitalization |
- Market Cap - $106.9 million at September 30 |
Slide 5 - TXCO Operational Snapshot |
- Leasehold: 572,000 Gross Acres |
- Maverick Basin - 480,000 acres (420,300 net) |
- Largest Maverick Basin Mineral Leaseholder |
- Williston Basin - 92,000 acres (87,300 net) |
- Reserve Make Up at June 30 |
- 24.7 Bcfe - 59% Proved Developed |
- 59% Gas - 14.5 Bcf |
- 41% Oil - 1,700 MBbls |
- PV-10 - $51.4 million |
- Net Daily Production |
- 17.9 MMcfe at June 30 - Up 27% from YE 2002 |
- 98% from Maverick Basin |
- 63% Oil - 1,886 BOPD |
- 37% Gas - 6.6 MMcfd |
- Forward-sales - $4.45/MMBtu for 2,700 MMbtu/day |
Slide 6 - 2003 Estimated Drilling/Development CAPEX |
Pie chart showing percentages and number of wells for five focus areas, as follows: |
- Budget: $26.4 million |
- 93 Initial proposed wells |
Slide 7 - 2003 Record CAPEX Budget |
- 2003 Estimated - $33.1 million |
2H03 Goals: |
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 8 - TXCO's Growth Strategy |
Increase Shareholder Value Through: |
- Focused Exploration Efforts |
- Extensive Exploitation Opportunities |
- Accumulate Large Leasehold Positions In Core Area |
- Operate Whenever Possible - More Than 85% |
- 3-D Seismic/Horizontal Drilling To Cut Risk |
- Grow with the Drillbit |
- 5 Rigs Running, 1 Moving In |
Slide 9 - TXCO Focus Area |
Slide 10 - Maverick Basin Acreage Growth |
Slide 11 - TXCO Pipeline Synergy |
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 12 - Maverick Basin Potential: Prospect Rich |
Slide 13 - 2003 Reserve Exposure Risk Mix |
Slide 14 - The Glen Rose Plays |
Slide 15 - Glen Rose: Three Plays in One |
Slide 16 - Glen Rose Porosity Interval. . . |
Slide 17 - Glen Rose Porosity Grows . . . |
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 18 - . . . and Grows |
Slide 19 - Horizontal Wells Reduce Water Cut From Glen Rose Porosity |
Slide 20 - Glen Rose Porosity Status |
Slide 21 - Horizontal Glen Rose Shoal Play |
Slide 22 - Georgetown Fault Play: 3-D Seismic |
Slide 23 - Georgetown Fault Play |
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 24 - Olmos/CBM Play: Coalbed Distribution in Maverick Basin |
Slide 25 - San Miguel Play: Sacatosa South/Comanche/Pena Creek |
Slide 26 - Typical CBM Production Profile for Gas And Water Rates: A 3-Phase Cycle |
Slide 27 - Olmos/CBM-San Miguel Synergy |
Slide 28 - Pena Creek Infill Drilling Under Way |
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 29 - Maverick Basin's Jurassic Play Orally, Mr. Thomae added that the well is nearing total depth and has confirmed marine sediments, good porosities, with good gas shows. We remain optimistic that this will be a good well. |
Slide 30 - Deep Jurassic Seismic |
Slide 31 - TXCO Financial Snapshot |
Slide 32 - 2Q03 Revenues Set Record, More Than Double Prior-Year Period |
Slide 33 - 2Q03 Production 2nd Highest Ever |
Slide 34 - Oil Production Remains High |
Slide 35 - Proved Reserves Continue Growth |
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 36 - Proved Reserve Mix Changes |
Slide 37 - Drilling Activity Accelerating |
Slide 38 - TXCO's Assets Increase As Shareholders' Equity Rises |
Slide 39 - Conservative Debt/Asset Ratio |
Slide 40 - Operating Cash Flows Strong |
Slide 41 - Rolling 3-Year Gross Profit Return On Investment Ratio - Compared |
TXCO's Oil and Gas Investment Symposium Presentation Outline |
Slide 42 - Peer Comparison: Gross Profit ROI |
Slide 43 - Rolling 3-Year F&D Drillbit Costs |
Slide 44 - Rolling 3-Year Production Replacement |
Slide 45 - Rising 5-Year CAPEX Trend |
Slide 46 - Why TXCO? |
Slide 47 - Multi-Play, Multi-Pay in the Maverick Basin TXCO Nasdaq listed |