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, which TXCO gained through its 2007 acquisition of Output Exploration LLC, is emerging as a second focus area. Located some 100 miles north-northwest of Houston, also is prospecitve for multiple plays. TXCO acquired additional Fort Trinidate aceage in early 2008, expanding its East Texas potential.

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