Exhibit 99.2 | |||
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Presentation Outline for TXCO's | |||
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Slide 1 - Annual Meeting of Shareholders | |||
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Slide 2 - Corporate Information | |||
- Headquarters: The Exploration Company; 500 North Loop 1604 East, Suite 250; | |||
- Contacts: | |||
- 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 p otential 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 Dec. 31, 2003, and its Form 10-Q for the quarter ended March 31, 2004. 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. | |||
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Slide 3 - TXCO Snapshot |
- Founded 1979 -- 25th Anniversary Year |
- Headquarters -- San Antonio |
- Nasdaq Smallcap: TXCO |
- Trading Statistics |
- Current 3-month average daily volume -- 100,700 shares |
- May 11, 2004, close -- $4.21 |
- 2003 |
- 21.1 million shares traded |
- High -- $6.75 |
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Slide 4 - TXCO Growth Strategy |
Shareholder Value Growth Principles: |
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Slide 5 - TXCO Profile |
- Multi-play/multi-pay focus on the Maverick Basin |
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Slide 6 - TXCO Operational Snapshot |
- Leasehold: 584,000 Gross Acres |
- Maverick Basin -- 492,000 acres (427,600 net) |
- Largest Maverick Basin Mineral Leaseholder |
- Williston Basin -- 92,000 acres (87,300 net) |
- Reserve Make Up -- December 31, 2003 |
- 28.4 Bcfe -- 59% Proved Developed |
- 55% Gas -- 15.6 Bcf |
- 45% Oil -- 2,129 MBbls |
- PV-10 -- $56.8 million |
- Net Daily Production -- Exit Rate March 2004 |
- 16.1 MMcfe -- Up 24% from March 2003 Exit Rate |
- 98% from Maverick Basin |
- 38% Oil -- 1,022 BOPD |
- 62% Gas -- 10.0 MMcfd |
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Slide 7 - TXCO Maverick Basin Focus Area |
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Slide 8 - TXCO's Pipeline Synergy |
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Slide 9 - 2nd Mexican Gas Sales Connection |
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Slide 10 - Maverick Basin Acreage Growth |
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Slide 11 - More Than 95% 3-D Seismic Coverage |
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Slide 12 - Maverick Basin: Prospect Rich |
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Slide 13 - Georgetown Faults: 'Seismic Looks Like Broken Glass' |
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Slide 14 - Georgetown Fault Play - Horizontal wells cross multiple faults with 11-for-11 success rate |
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Slide 15 - Georgetown: Model Fault Pattern |
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Slide 16 - 3-D Seismic Imaging Interpretation Creates Georgetown Success |
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Slide 17 - Georgetown Fault Play |
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Slide 18 - Glen Rose: Three Plays in One |
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Slide 19 - The Glen Rose Plays |
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Slide 20 - Glen Rose Porosity Interval |
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Slide 21 - Glen Rose Porosity |
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Slide 22 - Horizontal Wells Reduce Water Cut From Glen Rose Porosity |
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Slide 23 - Horizontal Glen Rose Shoal Play |
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Slide 24 - Horizontal Glen Rose Shoal Play |
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Slide 25 - Pena Creek Infill Drilling Under Way |
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Slide 26 - Olmos/CBM Play: Coalbed Distribution in Maverick Basin |
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Slide 27 - Olmos/CBM Play -- San Miguel Synergy |
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Slide 28 - Maverick Basin's Jurassic Play |
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Slide 29 - Drillbit Confirms Jurassic Target |
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Slide 30 - Financial Summary |
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Slide 31 - Strong Cash Flows, Conservative Debt |
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Slide 32 - Reserves and Production Rising |
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Slide 33 - Rolling 3-Year Production Replacement |
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Slide 34 - CAPEX Guidance |
Slide contains two charts: 1) a pie chart showing percentages, budget dollars and number of wells for five focus areas; and 2) a bar chart titled 5-Year CAPEX/Drilling. |
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2) Bar chart showing new wells, drilling and other components of CAPEX by year for the period 2000 through 2003 and estimated for 2004. |
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Slide 35 - 2004 Reserve Exposure Risk Mix |
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Slide 36 - 3-Year Performance Comparisons |
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Slide 37 - TXCO Capitalization |
- $132 million enterprise value at March 31, 2004* |
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Slide 38 - 3-Year Comparative Stock Performance |
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Slide 39 - Why Own TXCO? |
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Slide 40 - Multi-Play, Multi-Pay in the Maverick Basin |