TXCO Resources Inc. (Nasdaq: TXCO) said that it has retained Goldman Sachs to advise it on strategic options, which could include a merger or sale. The Texas-based oil and gas company currently has a market cap of approximately $64 million.
TXCO Resources Inc. (Nasdaq:TXCO) today announced it has begun a strategic alternatives review designed to enhance shareholder value, which may include a merger or sale. Goldman Sachs & Company has been retained as financial advisor.
No formal decisions have been made and no agreements have been reached at this time. There can be no assurance that any particular alternative will be pursued or that any transaction will occur, or on what terms. TXCO does not expect to disclose developments from this review unless its board of directors approves a definitive transaction.
“TXCO continues to have outstanding long-term growth opportunities,” said CEO James E. Sigmon. “We remain in an early stage of development, considering the large acreage position we have for a firm our size and the potential of our multiple resource plays. We are exploring all strategic alternatives to assure that we can maximize value for our shareholders as we adapt to the industry’s current, unstable financial and commodity price environment.”
About TXCO Resources
TXCO Resources is an independent oil and gas enterprise with interests in the Maverick Basin, the onshore Gulf Coast region and the Marfa Basin of Texas, and the Midcontinent region of western Oklahoma. It has a consistent record of long-term growth in its proved oil and gas reserves, leasehold acreage position, production and cash flow through its established exploration and development programs. TXCO’s business strategy is to build shareholder value by acquiring undeveloped mineral interests and internally developing a multi-year drilling inventory through the use of advanced technologies, such as 3-D seismic and horizontal drilling. It accounts for its oil and gas operations under the successful efforts method of accounting and trades its common stock on Nasdaq’s Global Select Market under the symbol “TXCO.” Additional information, including recent regulatory filings and investor presentations, is available at the Company’s Web site, www.txco.com.