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)
January 30, 2006
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 7.01:  Regulation FD
The Registrant issued a press release on January 30, 2006, updating sales and operational data for 2005. The text of this release has been included as Exhibit 99.1 to this Form 8-K.
The Registrant posted presentation slides for their February 2006 Update on its Web site on the same date. An outline of the presentation slides is provided as Exhibit 99.2 to this Form 8-K. The slides will be used for presentations in New York and Boston on January 30 through February 1, 2006.
Item 9.01:  Financial Statements and Exhibits
	Exhibit Number	Description
	99.1	Registrant's press release dated January 30, 2006, titled "The Exploration Company Updates Sales, Operations for 2005"
	99.2	Outline of "February 2006 Update" presentation slides
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: January 31, 2006
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, January 30, 2006		Investors: Roberto R. Thomae
		(210) 496-5300 ext. 214, bthomae@txco.com
		Media: Paul Hart
		(210) 496-5300 ext. 264, pdhart@txco.com
NEWS RELEASE
The Exploration Company Updates Sales, Operations for 2005
SAN ANTONIO -- Jan. 30, 2006 -- The Exploration Company (Nasdaq:TXCO) today provided an update on its Texas operations for the year just completed.
Net oil and gas sales volumes for 2005 were an estimated 4.6 billion cubic feet equivalent (Bcfe), a 6 percent decline from the previous year, reflecting the Sept. 1, 2005, sale of approximately 20 percent of TXCO's production, primarily natural gas, to EnCana Oil & Gas (USA) Inc. In 2004, oil and gas sales were 4.9 Bcfe.
Oil sales in 2005 totaled 397,300 barrels, a 24 percent increase from 2004, as TXCO continued to develop its Glen Rose Porosity oil play. Increasing oil production in the last four months of the year offset some of the production decline attributed to the asset sale. The Company's production mix for 2005 was 52 percent oil and 48 percent natural gas.

TXCO Estimated Yearly and Quarterly Sales Volumes*
	Annual 2005	Annual 2004	% chg.	4Q 2005	3Q 2005	% chg.	4Q 2004	% chg. 4Q05 / 4Q04
Natural Gas / MMcf	2,220	2,980	-25%	320	500	-36%	750	-57%
Oil / Bbls	397,300	321,400	+24%	131,300	110,400	+19%	92,600	+42%
Natural Gas Equivalents MMcfe	4,600	4,900	-6%	1,100	1,160	-5%	1,300	-15%
Oil Equivalents BOE	767,500	817,100	-6%	184,500	193,600	-5%	216,100	-15%
*Unaudited      MMcf=million cubic feet, MMcfe=million cubic feet equivalent, Bbls=barrels, BOE= barrels of oil equivalent

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     The Company spudded or re-entered 51 Maverick Basin wells in 2005. Thirteen wells drilled last year were assigned to EnCana as part of TXCO's asset sale. Of the remaining 38 wells, 26 have been placed on production to date while 12 wells are in various stages of completion.

     TXCO started 21 Glen Rose wells in 2005, comprised of 18 Porosity wells plus three Glen Rose Reef or Shoal wells. Thirteen of the Porosity wells are on production, including three drilled in the fourth quarter of 2005. Five currently are in completion. Two Reef/Shoal wells are in completion while a third Reef well was re-completed to the Georgetown and placed on production. TXCO also drilled six Georgetown wells, six San Miguel Pena Creek waterflood wells, two San Miguel heavy oil wells and three wells targeting other formations in the Maverick Basin in 2005. Of these 17 wells, 12 are on production while five are in completion. The Company has begun two new wells in 2006, including one Porosity well.

Management's Perspective

     "We recently announced a capital expenditure budget for 2006 of $40 million to $50 million -- the largest in our history," said President and CEO James E. Sigmon. "TXCO currently has two rigs running on our Maverick Basin acreage and we expect to add two more shortly as we begin a very busy year with an initial goal of 57 wells. We're continuing work on our Glen Rose Porosity play as we await the start of EnCana's program targeting five potential resource plays in the Maverick Basin. We expect EnCana to begin drilling the gas-prone Pearsall, in which we will have a 50 percent working interest, in the next few months. That program calls for eight wells in 2006.

     "We continue to be excited about the potential for new production and reserves as we move ahead to further develop multiple plays. Separately, we're working on our new Marfa Basin acreage in West Texas, which is prospective for the Barnett and Woodford shales, and expect to announce drilling and exploration plans soon."

Earnings Announcement

     TXCO currently plans to release its 2005 earnings statement prior to filing its Form 10-K with the Securities and Exchange Commission in March 2006.

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 developing 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 Capital Market under the symbol "TXCO."

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Forward-Looking Statements

     Statements in this press release which 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 budget and drilling plans, capital expenditures, production levels, the timing, number and cost of wells to be drilled, new 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 developing new oil and natural gas reserves, the price for which such reserves can be sold, e nvironmental 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 and year-to-date period ended Sept. 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.

-- 30 --

EX-99

Exhibit 99.2
Presentation Outline for Meetings in New York and Boston January 30 through February 1, 2006
Slide 1 - On the Road to Growth                February 2006 Update                James E. Sigmon, President and CEO                Roberto R. Thomae, VP-Capital Markets
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 Sept. 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 and Marfa Basins indicated. -     Ongoing Maverick Basin Focus        -   New Marfa Basin project - -     Full-Cycle Exploration Company        -  Lease / generate prospects / drill / produce - -     Multiple Emerging Resource Plays - -     Company-Owned 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)      -   Deleveraged balance sheet      -   Enhanced liquidity - -   Results Confirm Maverick Basin's High Potential      -   Large independent enters the basin      -   Emerging resource plays      -   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 555,000 net 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
-   50% 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 at Sept. 1, 2005      -   Comprises 20% of current TXCO production -- mostly Georgetown gas      -   Glen Rose Porosity discoveries offsetting Georgetown production sold
Slide 7 - 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, 656,000-gross acres, 555,000 net acres
Slide 8 - 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 9 - Glen Rose:  Three Plays in One, Porosity -- Reefs -- Shoals Picture of seismic data for a portion of the lease with a span of 34 miles indicated. - -   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 10 - Glen Rose:  Three Plays in One, Porosity -- Reefs -- Shoals Same picture as prior slide with TXCO wells drilled for 2002 through 2005, well currently drilling and certain non-TXCO wells, marked. - -   Glen Rose Porosity to Date       -    43 of 47 completions       -    1 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 11 - 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        -  Multiple delivery points - -     75 MMcfd current capacity - -     25% capacity utilization - -     100 MMcfd capacity potential - -     Enhanced basin-wide production monitoring
Slide 12 - New Marfa Basin Prospect Map of south central US, indicating the Ouachita and Appalachian Thrusts; the Marathon, Llano and Ozark uplifts; the Marfa, Delaware, Val Verde, Kerr, Fort Worth, Arkoma, and Black Warrior basins, and locations where Barnett, Woodford and Fayetteville Shales have been developed. Map also indicates location of the Maverick Basin. - -     140,000-acre position (135,000 net) - -     100% WI - -     Underexplored basin along Ouachita Overthrust
Slide 13 - New Marfa Basin Prospect -     Geologically Similar to Gas-Prone Fort Worth And Arkoma Basins - -     Geochemical Analysis Confirms:        -   Barnett and Woodford shales present        -   400' - 1,200' thick shales        -   High gas-in place potential        -   Organically rich -- good TOC        -   Thermally mature in gas window - -     Initial Exploration/Development Scheduled to Start in 2nd Half 2006        -   Seeking 50% partner        -   Planning expanded CAPEX, 2 wells expected - -     Leading Shale Resource Players Developing Barnett/Woodford in Western Delaware Basin        -   EnCana, Burlington, EOG, Quicksilver, etc.
Slide 14 TXCO Operational Snapshot
-  880,000 Gross Acres in Leasehold    -  Maverick Basin -- 656,000 acres (555,000 net)    -  Marfa Basin -- 140,000 acres (135,000 net)    -  Williston Basin -- 84,000 acres (83,000 net) - -  Sept. 30, 2005, Reserve Make Up    -  38.4 Bcfe -- 46.4% Proved Developed    -  73% Oil -- 4.7 MMBbls    -  27% Gas -- 10.3 Bcf    -  1.3% increase over YE 2004 post EnCana sale - -  Oil and Gas Sales    -  2005 sales 4.6 Bcfe, -6.1% from 2004 -- post EnCana        -  Production mix 52% oil / 48% gas    -  New Glen Rose oil replacing sold Georgetown gas       -  10.8 MMcfe -- pro forma Sept. 30, 2005, average daily sales        -  12.0 MMcfe -- estimated 4Q05 average daily sales    See appendix for definitions
Slide 15 - Post-EnCana Capitalization And Credit Statistics
Line chart indicating Total Capitalization by year for 2001 through 2004, 6 Mos. '05 and 9 Mos. '05, in $ millions, titled "Deleveraged Balance Sheet". Also, a table entitled "TXCO's Stronger Financial Position" as follows:                                                            2Q05                                    3Q05 Capital Structure ($ millions) Cash                                                                                    $   1.9                                  $ 24.7 Bank Debt                                                                               24.4                                       0.1 Preferred Shares                                                                      16.0                                       0.0 Stockholder Equity                                                                   62.3                                    76.2 Total Capitalization                                                              $102.7                                  $ 76.3 Credit Statistics Debt/Cap                                                                              39.3%                                    0.1% Debt/Ebitda                                                                             4.5x                                    0.02x Ebitda/Interest Expense                                                           5.0x                                      6.0x Debt/Proved Reserves ($/Bcfe)                                               $0.97                                  $0.001
Slide 16 - 2006 CAPEX Guidance
Slide contains a pie chart showing budget dollars, number of wells and % for four focus areas and Other, titled "2006 CAPEX -- 57 wells", as follows:        Glen Rose -- 28 Wells including 24 Porosity wells -- $23.3 million -- 54%; Georgetown --       10 Wells -- $6.6 million -- 15%; Other -- # of Wells not indicated -- $2.4 million -- no % shown;             Pena Creek San Miguel -- 10 Wells -- $3.0 million -- no % shown; and Pearsall -- 8 wells -- $8.0         million -- 18%.. - -     2006 CAPEX target: $40 million --$50 million - -     40% increase over 2005 - -     Largest CAPEX budget in TXCO's history - -     Focus on Glen Rose Porosity oil play
Slide 17 - 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 third quarter 2004 and 2005, as follows: 2001 -- 8.1; 2002 -- 12.0; 2003 -- 13.2; 2004 -- 13.4; 3Q04 -- 14.1; and 3Q05 -- 12.6*.   * Reflects EnCana sale at Sept. 1, 2005 Chart 2 -- Proved Reserves indicated in Bcfe by year for oil and gas for 2001 through 2004 and for third quarter 2005, as follows: Oil -- '01 - 1.8, '02 - 8.9, '03 - 12.8, '04 - 20.2, and 3Q05 - 28.0; Gas -- '01 - 11, '02 - 14.7, '03 - 15.6, '04 - 17.7, and 3Q05 - 10.4. Chart 3 -- Rising Proved Reserves Per Share indicated in Mcfe by year for 2000 through 2004 and for third quarter 2005, as follows: 2000 -- 0.32, 2001 -- 0.73, 2002 -- 1.23, 2003 -- 1.33, 2004 -- 1.40, and 3Q05 -- 1.35.
Slide 18 - 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 around $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 19 - Reserve Growth Continues Line chart shows reserves in Bcfe by formation in layers, by year for the period from 2001 to 2004 and at June and Sept. 2005, 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 over the years. Also indicates a drop in gas reserves after the EnCana sale, with a 34% CAGR in proved reserves over the period presented. - -     June 30 proved reserves were 41.8 Bcfe -- 45.5% proved developed - -     Sept. 30 proved reserves 38.4 Bcfe (post EnCana reserve sale) - -     See appendix for definitions
Slide 20 - TXCO's 4-Year Comparative Stock Performance
Chart shows stock performance for TXCO, TXCO Peers, S&P 500 and Dow Jones by month for 2002 through January 2006. Beginning and ending prices for TXCO were labeled as $2.17 and $8.40, 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, PQ; Standard & Poor's 500 Stock Index; Dow Jones Industrial Average Source: Bloomberg
Slide 21 - Why Own TXCO Now? -     Key Maverick Basin Player:   Multiple Emerging Resource Plays - -     Exploration Team with Solid Track Record        -     Proved basin's multi-play/multi-pay potential after the majors left,        -     Thousands of locations in current inventory - -     New World-Class Partner -- Accelerating Growth - -     Integrated Infrastructure Intact - -     Recapitalized, Deleveraged Balance Sheet - -     Advanced Technology to Mitigate Risk        -   3-D seismic, horizontal drilling, geochemical, enhanced drilling / completion - -     Explosive Potential for Reserve And Production Growth
Slide 22 - On the Road to Growth Visit us on the Web at www.txco.com
Slide 23 - 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. - -   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 - -   Mcf -- Thousand cubic feet of gas - -   MMcfd -- Million cubic feet of gas per day - -   Mcfe/MMcfe/Bcfe/Tcfe -- Thousand cubic feet equivalent / Million cubic feet equivalent / Billion cubic feet equivalent / Trillion cubic feet equivalent - -   Pro forma numbers -- For the quarter ended Sept. 30, adjusted for sales of properties to EnCana. - -   TOC -- Total organic carbon present in a formation. A basic chemical analysis of source rock. - -   Total Proved Reserves -- First-half 2005 estimates internally generated with assistance of William Cobb & Associates, Dallas, which reviewed TXCO's Pena Creek waterflood. Third quarter 2005 estimates internally generated. Year-end estimates prepared by independent reservoir engineers. Reserve estimates prepared in accordance with SEC and FASB requirements.