8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.    20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
September 30, 2005
THE EXPLORATION COMPANY OF DELAWARE, INC.
(Exact name of registrant as specified in its charter)
Delaware	0-9120		84-0793089
(State of	(Commission File		(IRS Employer
incorporation)	Number)		Identification No.)
500 North Loop 1604 East, Suite 250
San Antonio, Texas		78232
(Address of principal executive offices)		(Zip Code)
(210) 496-5300
(Registrant's telephone number,
including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the    registrant under any of the following provisions (see General Instruction A.2. below):
o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01:  Entry Into a Material Agreement

     On October 3, 2005, the Registrant issued a press release announcing that the agreement with EnCana Oil & Gas (USA) Inc., to sell selected interests in its Maverick Basin holdings for a purchase price of US$80, was successfully closed and funded on September 30, 2005. Please see the previous Form 8-K filed on September 27, 2005, for further details.

Item 5.02:  Departures of Directors or Principal Officers; Election of Directors; Appointment of
                  Principal Officers

     On Friday, September 30, 2005, Charles W. Yates, III informed the Company of his resignation from the Board of Directors and Mr. Michael Heinz resigned as Board Observer. Mr. Yates' and Mr. Heinz' affiliation with the Board had been as the designees of holders of the redeemable preferred stock. They did not serve on any Board committees. The preferred was repaid in full out of the proceeds from the asset sale agreement that closed on Friday. Both had served since August 2003.

     Additionally, on October 3, 2005, Mr. Thomas H. Gose informed the Company of his intention to retire from the Board of Directors. Mr. Gose's retirement enables him to focus more time on other business interests. Mr. Gose had served on the Company's Board since February 1989. Prior to his resignation, Mr. Gose served on the Audit and Nominating committees.

     Mr. Yates position on the Board will not be replaced. The appointment of a Board member to serve the remainder of Mr. Gose's term, which ends in 2008, will be announced when made.

Item 7.01:  Regulation FD

     On October 3, 2005, the Registrant issued a press release entitled "The Exploration Company to Webcast IPAA Symposium Presentation" announcing the upcoming presentation to be web cast on Wednesday October 5, 2005. An outline of the presentation slides is provided as Exhibit 99.3 to this Form 8-K.

Item 8.01:  Other Events

     On October 4, 2005, the Registrant canceled its hedges for natural gas for November 2005 through April 2007. The cancellation required a cash payment of approximately $9.9 million. This payment will substantially offset the accrued derivative obligations recorded in the first three quarters of 2005. As of October 31, 2005, the Company will no longer have any hedge position for natural gas. The hedges in place for crude oil remain unchanged.

Item 9.01:  Financial Statements and Exhibits
	Exhibit Number	Description
	99.1	Press release dated October 3, 2005, entitled "The Exploration Company to Webcast IPAA Symposium Presentation "
	99.2	Press release dated October 3, 2005, entitled "The Exploration Company Completes $80 Million Asset Divestiture; Retires Debt, Redeems Preferred Shares, Announces Change in Board of Directors"
	99.3	Outline of presentation slides for October 5, 2005 presentation to the IPAA Symposium scheduled for 1:10 p.m. local time in San Francisco.
The information contained in this report under Item 7.01, including the exhibits, is intended to be furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: October 5, 2005
THE EXPLORATION COMPANY OF DELAWARE, INC.
			/s/ P. Mark Stark
			P. Mark Stark
			Chief Financial Officer
			(Principal Accounting and Financial Officer)

EX-99

			Exhibit 99.1
For Immediate Release		Contact Information
Monday, October 3, 2005		Investors: Roberto R. Thomae
		(210) 496-5300 ext. 214, bthomae@txco.com
		Media: Paul Hart
		(210) 496-5300 ext. 264, pdhart@txco.com
The Exploration Company to Webcast IPAA Symposium Presentation
SAN ANTONIO -- Oct. 3, 2005 -- The Exploration Company (Nasdaq:TXCO) today announced President and CEO James E. Sigmon and Vice President-Capital Markets Roberto R. Thomae will update investors and analysts on its Maverick Basin growth strategy at the Independent Petroleum Association of America's Oil & Gas Investment Symposium West, set for Oct. 5-7 in San Francisco.
Mr. Sigmon will give a 20-minute presentation, scheduled to start at 1:10 p.m. PDT (4:10 p.m. EDT) Wednesday, Oct. 5. The presentation will be available live via the Internet on TXCO's Web site at www.txco.com/presentation.html and will be archived 90 days.
IPAA's 3rd annual OGIS West will feature oil service companies, private capital providers and leading exploration and production companies. It is modeled on the association's popular OGIS conference held annually in New York.
About The Exploration Company
The Exploration Company is an independent oil and gas enterprise with interests primarily in the Maverick Basin of Southwest Texas. The Company 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. Its business strategy is to build shareholder value by acquiring undeveloped mineral interests and internally develop a multi-year drilling inventory through the use of advanced technologies, such as 3-D seismic and horizontal drilling. The Company accounts for its oil and gas operations under the successful efforts method of accounting and trades its common stock on the Nasdaq Stock Market under the symbol "TXCO."
More information about potential 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, 2004, and its Form 10-Q for the quarter ended June 30, 2005. These and all previously filed documents are on file at the Securities and Exchange Commission and can be viewed on TXCO's Web site at www.txco.com. Copies are available without charge upon request from the Company.
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EX-99

			Exhibit 99.2
For Immediate Release		Contact Information
Monday, October 3, 2005		Investors: Roberto R. Thomae
		(210) 496-5300 ext. 214, bthomae@txco.com
		Media: Paul Hart
		(210) 496-5300 ext. 264, pdhart@txco.com
The Exploration Company Completes $80 Million Asset Divestiture; Retires Debt, Redeems Preferred Shares, Announces Change in Board of Directors
The Exploration Company (Nasdaq:TXCO) today announced it has closed its previously announced $80 million sale of selected interests in TXCO's Maverick Basin block to EnCana Oil & Gas (USA) Inc. The effective date of the transaction is Sept. 1, 2005, with a closing date of Sept. 30, 2005. Raymond James & Associates served as advisers to TXCO on the transaction.
Details of the asset divestiture are described in TXCO's news release dated Sept. 27, 2005. TXCO used the approximately $80 million in proceeds from the sale to: lRetire $32 million in debt drawn on its $50 million senior secured revolving credit facility with Guaranty Bank, FSB. lRedeem its 16,000 shares of Redeemable Preferred Stock, Series B, held by Kayne Anderson Energy Fund II LP and Gryphon Master Fund LP. TXCO used $16 million to fully redeem these shares, effective Sept. 30, 2005. lRetire $6.8 million of remaining obligations to Arrow River Energy LP and CMR Energy LP related to an asset exchange agreement signed in February 2005.
At closing, TXCO realized net proceeds from the sale of approximately $24 million to be used for general corporate purposes.
Effective with redemption of the Series B Preferred, the board of directors nominee for the preferred shareholders, Charles W. Yates III, resigned from TXCO's board of directors. Separately, Thomas H. Gose resigned from the Company's board to focus more time on other business interests.
Management Comment
TXCO President and CEO James E. Sigmon, said: "We are pleased to close the most important transaction in TXCO's history. The proceeds were used to greatly strengthen our balance sheet in anticipation of accelerating development of our Maverick Basin leasehold. Specifically, we will deploy capital to continue our successful Glen Rose formation drilling program, which has yielded excellent oil production results in the past year. We have a large inventory of yet-to-be drilled locations in the Glen Rose and will augment this development drilling with exploratory wells drilled in part with EnCana.
"I would like to thank Tom Gose, who has been a director since 1989, for his years of service to the Company and its shareholders. His insight and wisdom have helped grow the Company over the years and will be missed by the board.
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"I would also like to sincerely thank Chuck Yates for his diligent service. His oil and gas knowledge and financial insight were indeed valuable contributions that benefited TXCO and its shareholders during the last two years."
About The Exploration Company
The Exploration Company is an independent oil and gas enterprise with interests primarily in the Maverick Basin of Southwest Texas. The Company 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. Its business strategy is to build shareholder value by acquiring undeveloped mineral interests and internally develop a multi-year drilling inventory through the use of advanced technologies, such as 3-D seismic and horizontal drilling. The Company accounts for its oil and gas operations under the successful efforts method of accounting and trades its common stock on the Nasdaq Stock Market under the symbol "TXCO."
Forward-Looking Statements
Statements in this press release that are 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 successful negotiations with third parties, amount of interests to be earned, timing of closing transactions, capital availability, drilling plans, including the timing, number and cost of wells to be drilled, projects and expected response, and establishment of reserves. 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 developi ng new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns affecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. More information about potential 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, 2004, and its Form 10-Q for the quarter ended June 30, 2005. These and all previously filed documents are on file at the Securities and Exchange Commission and can be viewed on TXCO's Web site at www.txco.com. Copies are available without charge, upon request from the Company.
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EX-99

Exhibit 99.3
Presentation Outline for IPAA Oil & Gas Investment Symposium West October 5, 2005 in San Francisco
Slide 1 - On the Road to Growth                IPAA Oil & Gas Investment Symposium West                San Francisco -- October 2005                James E. Sigmon, President and CEO
Slide 2 - Corporate Information
-     Headquarters: The Exploration Company; 500 North Loop 1604 East, Suite 250;                 San Antonio, Texas 78232; Phone: (210) 496-5300; Fax: (210) 496-3232; www.txco.com
-     Contacts:  James E. Sigmon, President and CEO, jsigmon@txco.com                        Roberto R. Thomae, Vice President-Capital Markets, bthomae@txco.com
-     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 potential 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, 2004, and its Form 10-Q for the quarter ended June 30, 2005. 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.
Slide 3 - TXCO: A Profile Map of South Central United States of America with Maverick Basin indicated. -     Maverick Basin Focus - -     Full-Cycle Exploration Company        -  Lease / generate prospects / drill / produce - -     Balanced Producer - -     91-mile pipeline system
Slide 4 - Strategic Alternatives Results
-   TXCO's Strategic Alternatives Review Completed - -   Strategic Alternatives Reviewed to:      -   Maximize shareholder value      -   Accelerate ongoing business - -   $80 Million of Primarily Undeveloped Assets Sold to EnCana Oil & Gas (USA) - -   Results Confirm Maverick Basin's High Potential      -   Large independent enters the basin      -   Emerging resource play      -   Reaffirms TXCO's historical focus
Slide 5 - What TXCO Gains
-   $80 Million, All-Cash Transaction      -   Immediate shareholder value for portion of unrealized potential      -   Values remaining 600,000+ acres   - -   Access to EnCana's Operating and Technical Expertise      -   Recognized, world-class leader in resource play exploration, development and exploitation - -   Financial Flexibility -- Deleveraged Balance Sheet      -    Eliminated $32 million of long-term debt, $16 million of preferred stock, $24 million for future growth - -   Higher Working Interest in Promising Zones      -   85% WI in Maverick Basin acreage     - -   Proves Up Long-Term, Maverick Basin Strategy
Slide 6 - What EnCana Gains
-   Interest in 300,000+/- Acres in Southern Block      -   TXCO consolidates interest in Glen Rose      -   Retains Pena Creek San Miguel - -   50% Interest in Deep Rights on 220,000 +/- Acres In Northern Block      -   TXCO retains its full interest in all shallow formations      -   50% interest in deep rights; Pearsall, Jurassic, etc. - -   3% of TXCO's Proved Reserves      -   Comprises 20% of current TXCO production -- mostly Georgetown gas      -   Recent Glen Rose Porosity discoveries should offset Georgetown production sold
Slide 7 - Pro Forma Capitalization And Credit Statistics Line chart indicating Total Capitalization by year for 2001 through 2004, 1H05 and Pro Forma, in $ millions. Also, a table entitled "Pro Forma Capitalization*" as follows: $ millions                                                                            1H05                             Pro Forma Capital Structure Cash                                                                                    $   1.9                                  $ 34.1 Bank Debt                                                                              24.4                                       0.0 Preferred Shares                                                                      16.0                                      0.0 Stockholder Equity                                                                  62.3                                     76.6 Total Capitalization                                                             $102.7                                  $ 76.6 Credit Statistics Debt/Cap                                                                             39.3%                                    0.0% Debt/Ebitda                                                                            4.5x                                     0.0x Ebitda/Interest Expense                                                          5.0x                                    10.6x Debt/Proved Reserves                                                          $0.97                                     $0.0 * Pro Forma does not include results of 3Q05 operating activities.
Slide 8 - 2005 CAPEX Guidance: Multi-Play, Multi-Pay
Slide contains two pie charts showing budget dollars, number of wells and % for three focus areas and Other. The first for the initial 2005 CAPEX drilling budget with 60+ wells, and the second for the revised drilling CAPEX with 52 wells. 1)     Glen Rose Porosity/Reefs -- 6 Wells + 3 Re-entries -- $3.4 million -- 13%; Georgetown --         34 Wells + 1 Re-entry -- $16.9 million -- 63%; Other -- 6 Wells -- $3.3 million -- 13%; and San          Miguel -- 12 Wells -- $2.8 million -- no % shown. 2)     Glen Rose Porosity/Reefs -- 20 Wells + 1 Re-entry -- $9.5 million -- 45%; Georgetown --         15 Wells + 1 Re-entry -- $8 million -- 38%; Other -- 9 Wells -- $2.1 million -- no % shown; and          San Miguel -- 6 Wells -- $1.6 million -- no % shown. - -     2005 CAPEX Target: 52 Wells/$26-33 Million - -     42 Maverick Basin wells drilled/re-entered YTD - -     Total 1H05 CAPEX: $17.9 million
Slide 9 - TXCO's Maverick Basin Focus Area Map of South Central United States of America with Maverick Basin indicated, and more detailed map focusing in on TXCO's Maverick Basin lease area that indicates by shading the acreage covered by the EnCana joint venture and TXCO's Glen Rose/San Miguel acreage, as well as outlining the acreage covered by 3-D seismic data. TXCO Acreage Block, 664,000-gross acres, 561,000 net acres
Slide 10 - TXCO's Pipeline - Marketing Synergy Map of pipeline superimposed over Maverick Basin lease map, indicating TXCO acreage, TXCO's Maverick-Dimmit Pipeline System, Area Pipelines, Compressor stations and Delivery points, as well as indicating the relative location of the Eagle Pass and Carrizo Springs communities and Mexico. - -     Strong infrastructure - -     Operational synergies - -     91-mile system provides:        -  Higher netback        -  Market access        -  Ongoing cost savings - -     77% CAGR in throughput volumes, 2002-2004 -     35 MMcfd current capacity - -     50% capacity utilization - -     100 MMcfd capacity potential - -     Enhanced basin-wide production monitoring
Slide 11 - Maverick Basin: Prospect Rich, Growing Potential Drawing showing the relative positions of the following geologic formations:  Escondido/Olmos, Olmos CBM, San Miguel, Anacacho, Austin Chalk, Eagle Ford, Buda, Georgetown, Pryor, McKnight, Glen Rose, Pearsall, Sligo and Jurassic. - -     20+ Productive Zones, Thousands of Drilling Prospects
Slide 12 - Glen Rose:  Three Plays in One, Porosity -- Reefs -- Shoals Picture of seismic data for a portion of the lease block with TXCO wells drilled for 2002 through 2005, and certain non-TXCO wells, marked. - -   Glen Rose Porosity       -    37 of 40 completions       -    3 drilling - -   3-D seismic defined - -   Reserves targeted/well       -    Reefs/Shoals - 2 +/- Bcfe       -    Porosity - 75 to 400 MBbls - -    Drilling costs       -  Vertical -- $750,000 to $900,000       -  Horizontal -- $1.0-1.25 million
Slide 13 - Glen Rose Drilling Update -      2005 Glen Rose Drilling Program        -   $9.5 million, 20 wells + 1 re-entry        -   14 wells drilled 2005 to date             -  8 new Porosity oil wells             - 1 Porosity re-entry             -  3 Porosity wells currently drilling             -  2 Reef gas wells
Slide 14 - TXCO Operational Snapshot
-  748,000 Gross Acres in Leasehold    -  Maverick Basin -- 664,000 acres (561,000 net)    -  Williston Basin -- 84,000 acres (83,000 net) - -  Pro Forma Reserve Make Up    -  40.4 Bcfe -- 42.9% Proved Developed       -  75% Oil -- 5.1 MMBbls       -  25% Gas -- 10.0 Bcf       -  6.5% increase over YE 2004 - -  Oil and Gas Sales    -  New Glen Rose oil replacing lost Georgetown gas       -  Pre-EnCana -- 13.1 MMcfe August average daily sales volumes        -  Post-EnCana -- 13.9 MMcfe estimated September average daily sales volumes    See appendix for definitions
Slide 15 - Key Indicators Confirm Growth
Slide contains a data box and three bar charts: - -   Rolling 3-Year Metrics 2002 - 2004      -   279% production replacement      -   207% gross profit ROI      -   $1.80/Mcfe drillbit F&D cost Chart 1 -- Average Daily Sales Volumes shown by year in MMcfed for 2001 through 2004 and for first half 2004 and 2005, as follows: 2001 -- 8.1; 2002 -- 12.0; 2003 -- 13.2; 2004 -- 13.4; 1H04 -- 12.7; and 1H05 -- 12.9. Chart 2 -- Proved Reserves indicated in Bcfe by year for oil and gas for 2001 through 2004 and for first half 2005, as follows: Oil -- '01 - 1.8, '02 - 8.9, '03 - 12.8, '04 - 20.2, and 1H05 - 28.9; Gas -- '01 - 11, '02 - 14.7, '03 - 15.6, '04 - 17.7, and 1H05 - 12.9. Chart 3 -- Rising Proved Reserves Per Share indicated in Mcfe by year for 2000 through 2004 and for first half 2005, as follows: 2000 -- 0.32, 2001 -- 0.73, 2002 -- 1.23, 2003 -- 1.33, 2004 -- 1.40, and 1H05 -- 1.47.
Slide 16 - Key Indicators Confirm Growth
Slide contains four bar charts. . Actual numbers not given by category. Chart 1 -- EBITDA, EBITDAX, Cash Flows indicated by year for 2001 through 2004 Chart ranges from around $8 million in 2001/2002 to over $16 million in 2004. Chart 2 -- Net Cash-Operating Activities for 2001 through 2004. Ranges from around $8 million in '01/'02 to over $15 million in '04. Chart 3 -- Total Assets for 2001 through 2004. Ranges from $30 million in '01 to over $114 million in '04. Chart 4 -- Total Revenues for 2001 through 2004. Ranges from about $15 million in '01 to over $57 million in '04. - -  All dollars in millions. See TXCO's Web site for non-GAAP reconciliations and appendix for definitions.
Slide 17 - Reserve Growth Continues Line chart shows reserves in Bcfe by formation in layers, for the period from 2001 to 2004 and Pro Forma after the EnCana JV, for:  Georgetown - oil; Georgetown - gas; San Miguel - oil; Glen Rose - gas; Glen Rose - oil; Other Formations; Escondido - gas; and, Williston Basin - oil. The chart shows the growth in oil reserves from the San Miguel, Georgetown and Glen Rose formations and the growth in gas reserves in the Glen Rose and Georgetown formations. Also indicates a drop in gas reserves on a pro forma basis with a 30% CAGR in proved reserves over the period presented. - -     June 30 proved reserves were 41.8 Bcfe -- 38% PDP - -     Post EnCana JV, TXCO pro forma reserves down 3% -- 40.4 Bcfe - -     See appendix for definitions
Slide 18 - Comparative Stock Performance
Chart shows stock performance for TXCO, TXCO Peers, S&P 500 and Dow Jones by month for 2002 through September of 2005. Beginning and ending prices for TXCO were labeled as $2.17 and $7.25, respectively. Significant peaks in the TXCO stock performance graph are labeled, as follows: - -      Mid-2002 -- Glen Rose Porosity Oil Discovery - -      Late 2003 -- Jurassic Drilling - -      Late 2004 -- Analyst Coverage - -      September 2005 -- EnCana Sale TXCO -- The Exploration company; TXCO Peers -- BEXP, CRZO, CWEI, DBLE, EPEX, GSX, ABP, MCF, NGAS, PLLL, PQUE; Standard & Poor's 500 Stock Index; Dow Jones Industrial Average Source: Bloomberg
Slide 19 - TXCO Stayed the Course, Executing Its Growth Strategy
Increasing Shareholder Value as TXCO: - -     Builds Multi-Year Inventory Over Large Lease Block in Core Area - -     Applies Advanced Technology to Mitigate Risk        -   3-D seismic -- fewer dry holes         -   Horizontal drilling -- higher production rates        -   Ongoing -- enhanced drilling/completion methods - -   Leverages Maverick Basin Experience With World-Class Joint Venture Partner
Slide 20 - Why Own TXCO Now? -     Key Maverick Basin Player:   Emerging Resource Plays - -     Exploration Team with Solid Track Record        -     After the majors left, proved basin's multi-play/multi-pay potential        -     Thousands of locations in current inventory - -     New World Class Partner -- Accelerating Growth - -     Integrated Infrastructure Intact - -     Recapitalized, Deleveraged Balance Sheet - -     Explosive Potential for Reserve And Production Growth
Slide 21 - On the Road to Growth Visit us on the Web at www.txco.com
Slide 22 - Appendix -   Acreage Position -- Gross/net mineral acres held under lease or option -   Average Daily Sales Volumes -- Sales volumes approximate field production volumes after the impact of fuel, shrink, venting and/or downtime related to pipeline curtailment, amine/processing plant capacity, weather, compression, or routine repairs and maintenance. - -   Tcfe/Bcfe/MMcfe/Mcfe -- Trillion cubic feet equivalent/Billion cubic feet equivalent/Million cubic feet equivalent/Thousand cubic feet equivalent - -   CAGR -- Compound annual growth rate - -   Cash Flows -- Net cash provided by operating activities - -   Debt-to-Capitalization Ratio -- Total debt over (total debt plus total stockholder equity) - -   Drillbit Finding and Development Costs -- Per Mcfe, including exploration costs and actual drilling costs incurred compared to the volume of new reserves added, prior to any revisions in engineering estimates. - -   Ebitdax and Ebitda -- See the Investor Relations section of the Company's Web site at www.txco.com for a reconciliation of non-GAAP financial measures. - -   Enterprise value -- Diluted shares (assuming exercise of all outstanding options and warrants), times share price, plus debt, plus preferred equity, less cash and equivalents. - -   Gross Profit -- Oil and gas revenues less operating expenses and G&A costs - -   Gross Profit Return on Investment -- Gross Profit divided by Finding and Development Costs - -   MBbls/MMBbls - Thousand/million barrels of oil - -   MMcfd -- Million cubic feet of gas per day - -   Mcf -- Thousand cubic feet of gas - -   Total Proved Reserves -- First-half 2005 estimates internally generated with assistance of William Cobb & Associates, Dallas, which reviewed TXCO's Pena Creek waterflood. Year-end estimates prepared by independent reservoir engineers. Reserve estimates prepared in accordance with SEC and FASB requirements.