Exhibit 99.2 | |||
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Presentation Outline for RBC Capital Markets | |||
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Slide 1 - Multi-Play, Multi-Pay In the Maverick Basin | |||
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Slide 2 - Corporate Information | |||
- Headquarters: The Exploration Company; 500 North Loop 1604 East, Suite 250; | |||
- Contact: | |||
- 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 -- 70,000 shares |
- May 28, 2004, close -- $3.81 |
- 2003 |
- 21.1 million shares traded |
- High -- $6.75 |
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Slide 4 - TXCO Maverick Basin Focus Area |
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Slide 5 - TXCO Capitalization |
- $127 million enterprise value at May 28, 2004* |
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Slide 6 - TXCO Profile |
- Multi-play/multi-pay focus on the Maverick Basin |
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Slide 7 - TXCO Growth Strategy |
Increase Shareholder Value Through: |
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Slide 8 - Reserves and Production Rising |
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Slide 9 - TXCO's Pipeline Synergy |
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Slide 10 - Updated CAPEX Guidance: Multi-Play, Multi-Pay |
Slide contains two charts: 1) a pie chart showing percentages, budget dollars and number of wells for six 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 11 - 2004 Reserve Exposure Risk Mix |
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Slide 12 - 3-Year Performance Comparisons |
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Slide 13 - Rolling 3-Year Production Replacement |
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Slide 14 - Strong Cash Flows, Conservative Debt |
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Slide 15 - 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 |
- Net Daily Production -- May 2004 Exit Rate |
- 16.9 MMcfe |
- 94% from Maverick Basin |
- 37% Oil -- 1,039 BOPD |
- 63% Gas -- 10.7 MMcfd |
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Slide 16 - Maverick Basin Acreage Growth |
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Slide 17 - Maverick Basin: Prospect Rich |
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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 - Expanded Glen Rose Reef Play |
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Slide 21 - Georgetown Faults: Repeatable Success |
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Slide 22 - 3-D Seismic Imaging Confirms TXCO's Georgetown Prospects |
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Slide 23 - Olmos/CBM Play: Coalbed Distribution in Maverick Basin |
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Slide 24 - Maverick Basin's Jurassic Play |
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Slide 25 - Why Own TXCO? |
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Slide 26 - Multi-Play, Multi-Pay In the Maverick Basin |
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ADDENDUM - covered in break-out sessions after the presentation $4.13 -- Gross operating margin per Mcfe -- TXCO's revenues less operating costs, excluding production taxes |
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