TXCO's core operating area is the Maverick Basin in Southwest Texas, approximately 150 miles southwest of San Antonio. The Maverick Basin is a hydrocarbon-rich area marked by multiple productive formations, several with resource-play potential. Each of these plays has the potential to significantly impact TXCO’s reserves and production.

The East Texas Fort Trinidad Field is a second focus area for TXCO. The company gained Fort Trinidad in its 2007 acquisition of Output Exploration LLC. Located some 100 miles north-northwest of Houston, it is also prospective for multiple plays. TXCO acquired additional Fort Trinidad acreage in early 2008, expanding its East Texas potential.

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