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)
February 2, 2007
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.)
777 E. Sonterra Blvd., Suite 350
San Antonio, Texas		78258
(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))

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Item 7.01:  Regulation FD

The Registrant issued a press release on February 2, 2007 announcing its upcoming presentation at the Independent Petroleum Association of America's Oil & Gas Investment Symposium Small Cap conference and the planned webcast of the presentation.

The Registrant posted slides for the presentation to its web site on February 5, 2007, in advance of its presentations in Boca Raton, Florida on February 6, 2007. The description of the slides for the presentation is attached as Exhibit 99.2.

Item 9.01:  Financial Statements and Exhibits

Exhibit Number	Description
99.1	Registrant's February 2, 2007 press release entitled "The Exploration Company to Webcast IPAA Presentation"
99.2	Description of 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: February 7, 2007

THE EXPLORATION COMPANY OF DELAWARE, INC.

/s/ P. Mark Stark

P. Mark Stark

Chief Financial Officer

(Principal Accounting and Financial Officer)

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EX-99.1

Exhibit 99.1

For Immediate Release	Contact Information
Friday, February 2, 2007	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 Presentation

SAN ANTONIO -- Feb. 2, 2007 -- The Exploration Company (Nasdaq:TXCO) today announced Vice President-Capital Markets Roberto R. Thomae will update investors and analysts on its growth strategy at the Independent Petroleum Association of America’s Oil & Gas Investment Symposium (OGIS) Small Cap, set for Feb. 6-8 in Boca Raton, Florida.

Mr. Thomae’s presentation is scheduled to start at 1:30 p.m. EST (12:30 p.m. CST) Tuesday, Feb. 6. A webcast will be available live via the Internet on TXCO’s Web site at www.txco.com/presentation.html and will be archived for 90 days. IPAA’s 3rd annual OGIS Small Cap conference allows publicly traded U.S. energy firms with market caps under $500 million to present their corporate profiles to the investment community.

About The Exploration Company

The Exploration Company is an independent oil and gas enterprise with interests primarily in the Maverick Basin of Southwest Texas and the Marfa Basin in West 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 Nasdaq’s Global Select 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, 2005, and its Form 10-Q for the period ended Sept. 30, 2006. This 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-99.2

Presentation Outline for Presentation

at 2007 OGIS Small Cap

February 6-8, 2007

Slide1 - Continuing Growth

2007 OGIS Small Cap

February 6-8 -- Boca Raton, Florida

Roberto R. Thomae, Vice President-Capital Markets

Slide 2 - Corporate Information

·   Headquarters: The Exploration Company; 777 E. Sonterra Blvd., Suite 350;

San Antonio, Texas 78258; 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, a NASDAQ Global Select Company

·   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, 2005 and its Form 10-Q for the quarter ended Sept. 30, 2006. These reports and TXCO's 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 of which are available from the Company without charge.

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Slide 3 - TXCO's Profile: Focused Growth

Map of South Central United States of America with Maverick and Marfa Basins indicated.

Maverick Basin

·   Core focus: 85% WI in 650,000 acres

·   Glen Rose Porosity oil play

·   99% of reserves -- 41.0 Bcfe at June 30, 2006

·   ~78% oil

·   Significant multi-play growth potential

·   Pearsall shale

·   San Miguel oil sands

Marfa Basin

·   50% WI in 141,000 acres

·   Target: Barnett and Woodford shales

·   New resource play potential

·   First well now in completion

Slide 4 - TXCO's Profile: Organic Growth

·   A Full-Cycle Exploration Company

·   Lease minerals

·   Acquire seismic

·   Generate prospects

·   Drill

·   Produce

·   Multiple Resource Plays

·   1,000s of drilling prospects

Slide 5 - Maverick Basin Focus Area

Map focusing in on TXCO's Maverick Basin lease area that indicates by shading the acreage covered by the EnCana joint venture ( 50% working interest, deep rights only), TXCO's Glen Rose/San Miguel acreage (where EnCana has all other zones) and acreage where TXCO has all rights, as well as outlining the acreage covered by 3-D seismic data.

·   TXCO Acreage Block, 650,000 gross acres, 549,000 net acres

·   Over 90% 3-D seismic coverage

·   603,000 acres (940 sq. miles) of data

Slide 6 - 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, 100% WI

·   Operational synergies

·   91-mile system provides:

·   Higher netback

·   U.S. / Mexico markets

·   Ongoing cost savings

·   Multiple delivery points

·   35 MMcfd current capacity

·   33% capacity utilization

·   100 MMcfd capacity potential

·   Enhanced basin-wide production monitoring

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Slide 7 - Maverick Basin Cross Section

Drawing showing the relative positions of the following geologic formations:  Escondido, Olmos / CBM, San Miguel, Anacacho, Austin Chalk, Eagle Ford, Buda, Del Rio, Georgetown, Pryor, McKnight, Glen Rose, Pearsall, Pine Island, Sligo, Hosston and Jurassic. The slide also indicates 9 of the formations as potential resource plays (those have been underlined above).

·   20+ Productive Zones, Thousands of Drilling Prospects

Slide 8 - Initial 2007 CAPEX Targets

Slide contains a pie chart showing budget dollars, number of wells and, in some cases, % for focus areas and Other. The chart is titled "Target: 103 Wells" and shows activity and focus areas, as follows:

·   Glen Rose -- 49 wells, including 39 porosity wells -- $45.1 million -- 62%; Pearsall -- 3 Wells -- $4.8million; Georgetown -- 7 Wells -- $4.9 million; Other -- $2.0 million; Pena Creek San Miguel -- 11 Wells -- $3.5 million; Marfa -- Seismic, 1 Well -- $3.0 million; and San Miguel Oil Sands -- Leasehold, 32 Wells -- $9.1 million.

·   2007 CAPEX:

·   $70 - 75 million

·   103 wells

·   Continuing focus:

·   Glen Rose Porosity oil play

·   Accelerate --

·   Oil sands

·   Pearsall shale

·   Marfa Basin

·   5 rigs currently operating

Slide 9 - Maverick Basin Core Focus: Glen Rose Porosity Oil Play

Picture of seismic data for a portion of the Maverick Basin lease with a span of 30 miles indicated with TXCO wells drilled for 2002 through 2006, wells currently drilling, and 2007 focus areas indicated.

·   71 TXCO wells drilled since 2002 discovery

·   31 wells spudded 2006

·   39-well target in 2007

·   2 rigs currently drilling

·   300+ potential drilling locations in inventory

·   300,000+ gross acres

·   Reserves targeted / well

·   EUR 140,000 Bbls

·   Drilling costs

·   Horizontal -- $1.1-1.3 million

Slide 10 - 3-D Seismic Imaging Defines Glen Rose Porosity Locations

Close up of seismic data for a portion of the lease with Porosity 'traps' and existing wells and a 6-mile span indicated.

·   Enhanced seismic imaging improves well placement

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Slide 11 - Glen Rose Porosity Production Type Curve -- Actual

Line chart indicating production curves for the types of wells indicated in the table. Also marking each line with a star indicating the payout point.

·   GR Porosity Type Well EUR: 132,000 Bbls

·   Payout based on 36 MBbls @ $50 per Bbl

Type	No. Wells	Cum Prod.	EUR*
Best Well		301 MB	428 MB
Horz >1,000' in Zone	6	178 MB	229 MB
Horz < 1000' in Zone	15	80 MB	111 MB
Vertical	16	90 MB	95 MB
Horz < 200' in Zone	13	44 MB	45 MB
Horz -- Not in Zone	6	30 MB	37 MB
Total Commercial Wells	56
* Estimates prepared by independent reservoir engineers

Slide 12 - Oil & Gas Sales Continue to Rise

Bar chart showing oil and gas sales by year for 2001 through 2006 quarters, and range from less than 500 MBOE for 201 to almost 1,000 MBOE for 2006. A 97% increase is indicated over the time period and the percentage of oil sales to total oil and gas sales is indicated for each year as follows: 2001 -- 10%; 2002 -- 43%; 2003 -- 56%; 2004 -- 39%; 2005* -- 52%; and 2006 -- 81%.

·   Continuing growth in the Glen Rose Porosity oil focuses TXCO on oil production while Maverick Basin's multiple gas resource plays develop

·   * Approximately 20% of gas production sold to EnCana, September 2005

Slide 13 - Glen Rose Porosity Oil Sales Show Continuing Growth

Bar chart showing oil sales from the Glen Rose Porosity by quarter for the last 12 quarters. The chart indicates 335 BOPD for second-quarter 2005 and 1,984 BOPD for fourth-quarter 2006, and an increase of 492% for that period.

·   2Q06 / 3Q06 sales include 10,000 Bbls from inventory bottleneck in 4Q05 / 1Q06

Slide 14 - Maverick Basin's Oil Sands Resource Play

Map of Kinney, Maverick, Zavala and Dimmit Counties indicating the core area for San Miguel tar sand, primarily in northern Maverick County.

·   7-10 billion Bbls* estimated in place -- basin wide

·   Experienced Canadian partner:

Pearl E&P (50% WI); TXCO operator

·   Carried TXCO on first two wells and steam generation facilities

·   Analogous to Canadian Athabasca region's Cold Lake field

·   Current technologies, higher oil prices improve economics and operating synergies over 1970s-1980s Exxon and Conoco pilots

* Revised internal estimates based on advanced geologic review

Slide 15 - Maverick Basin Oil Sands Pilot

Pictures of portable steam generator and water, oil and diluent tank battery.

·   90- to 120-day cyclic steaming phase now under way on initial 2 wells

·   32 new wells scheduled during 2007 based on evaluation of initial steaming results

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Slide 16 - Pearsall Shale Gas Resource Play

Map of Maverick Basin lease area that indicates area prospective for Pearsall and areas where the rights to that formation are owned by TXCO or EnCana. Also indicated is the area of recent Anadarko acreage acquisitions and the location of the first EnCana/TXCO vertical well now being flow tested.

·   EnCana operator, 50% WI

·   Underbalanced / horizontal drilling and fracturing

·   3-D seismic defined

·   Historical production averaged 400 MMcfe from 50+ vertical wells completed prior to 3-D seismic, underbalanced drilling, fracturing or horizontal drilling

Slide 17 - Pearsall Shale Gas Resource Play

·   Unconventional Tight Gas

·   Blanket presence

·   Overpressured formation

·   100 Bcf / Section, Estimated Gas in Place, Per EnCana Estimates

·   500+ Potential Locations

·   2006 -- 1 Well, $2 Million (50% WI)

·   2007 -- 3 Wells Scheduled, $4.8 Million (50% WI)

·   Anadarko Has Accumulated 330,000+ Acres Targeting the Pearsall and Eagleford Shales

·   6 wells permitted, 2 rigs drilling

Slide 18 - Pearsall Type Log From Existing Production

Slide contains logs for the Los Cuatros Field (early 1970s).

·   20+ Bcfe production

·   Vertical wells

·   Prior to advanced completion and stimulation technology

·   Mud log confirms strong gas shows throughout Pearsall interval source rock

·   Known geochemistry:

·   High gas-in-place potential

·   Organically rich

·   Thermally mature in gas window

Slide 19 - TXCO's Other Plays In the Maverick Basin

Drawing of geological formations with relative location of following plays indicated.

San Miguel Pena Creek Waterflood

·   2006 Sales = 181 BOPD

·   15 wells drilled / re-entered

·   120+ potential infill locations

·   2007 plan

·   $3.5 million CAPEX

·   11 wells (100% WI)

Georgetown Formation

·   Gas and oil play

·   2006 Sales = 60 BOEPD

·   4 wells drilled / re-entered

·   300+ potential locations

·   2007 plan

·   $4.9 million CAPEX

·   7 wells (63 - 100% WI)

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Slide 20 - TXCO's Marfa Basin Lease Block

·   Inset map of Texas portion of the Ouachita Thrusts; the Marathon and Llano uplifts; the Marfa, Delaware, Val Verde, Kerr and Fort Worth basins, and locations where Barnett and Woodford Shales have been developed. Enlargement map indicating a 25-mile span and showing the TXCO, Quicksilver and Carrizo acreage (based on public filings) and the relative position of the Marfa and Alpine communities.

·   TXCO acreage block acquired October 2005

·   50% WI in 141,000 gross acres

·   Continental Resources serves as operator

Slide 21 - Marfa Basin Focus Area

·   Underexplored Basin Along Ouachita Overthrust

·   Geologically Similar to Gas-Prone Fort Worth And Arkoma Basins

·   Excellent Geochemical Characteristics

·   Barnett and Woodford shales present

·   400' - 1,200' thick shales

·   High gas-in-place potential

·   Organically rich -- good TOC

·   Thermally mature in gas window

·   Other Leading West Texas Shale Players

·   EnCana, ConocoPhillips, EOG, Quicksilver, Carrizo, Petrohunt, etc.

·   Initial Exploration / Development

·   3-D seismic, 2nd well, scheduled for 2007

·   4Q06 re-entry confirmed gas present

Slide 22 - Continuing Organic Reserve Growth

Line chart shows reserves in Bcfe by formation in layers, by year for the period from 2001 to 2005, and at June 30, 2006, for: Glen Rose - oil; Glen Rose - gas; San Miguel - oil; Georgetown - gas; Georgetown - oil; Other Formations; and, Williston Basin - oil. The chart shows the growth in oil reserves from the San Miguel, and Glen Rose formations and the growth in gas reserves in the Glen Rose formations over the years. Also indicates a drop in gas reserves after the EnCana sale, with a 30% CAGR in proved reserves over the period presented.

·   June 30, 2006 proved reserves were 41.5 Bcfe

·   50% proved developed

·   2006 sales

·   Oil equivalent -- 979,800 BOE

·   Oil -- 796,000 Bbls (81%)

·   Gas -- 1.1 Bcf (19%)

·   Net of 1.4 Bcfe in proved reserves sold to EnCana, September 2005

See appendix for definitions

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Slide 23 - Stronger Financial Metrics

Slide contains a data table and a bar chart entitled "Stockholder Equity Growing."

Data table:

$ millions	9 mo. '06			9 mo. '05
Capital Structure
Cash	$	6.0		$	24.7
Bank Debt		0.0			0.1
Stockholder Equity		126.8			76.2
Total Capitalization	$	126.8		$	76.3
Credit Statistics
Debt/Cap		0.0	%		0.1	%
Debt/Ebitda		0.0x			0.0x
Ebitda/Interest Expense		149.0x			5.4x
Debt/Proved Reserves	$	0.00		$	0.00

The bar chart shows Stockholder Equity, "Debt-Bank and Other," and "Debt-Preferred Stock" by year for 2001 through 2005, and at September 30, 2006. Actual dollar amounts not indicated. Stockholder Equity is shown as growing steadily from under $25 million in 2001 to more than $125 million at September 30, 2006. Bank and Other debt is shown as growing from about $1 million in 2001 to almost $20 million in 2004, before being eliminated in 2005. Preferred Stock debt first appears in 2003 at about $16 million, which is also shown in 2004, and was eliminated in 2005.

Slide 24 - Key Metrics Demonstrate Stronger 2006 Results

($ in millions, except per share amounts)					Net Change
	9 mo. '06		9 mo. '05		$		%
Oil & Gas Sales	$	44.4	$	27.5	$	16.9		+61	%
Total Revenues	$	57.2	$	47.2	$	10.0		+21	%
Operating Income	$	18.1	$	3.2	$	14.9		+466	%
Net Income *	$	11.6	$	11.0	$	0.6		+5	%
Earnings per Share *	$	0.35	$	0.38	$	0.03		-8	%
Ebitdax  **	$	32.0	$	17.4	$	14.6		+84	%
Ebitda  **	$	31.1	$	15.6	$	15.5		+99	%

*  2005 net income includes one-time, $24.5 million gain on EnCana sale     

** See Ebitda/Ebitdax reconciliation on TXCO's Web site, www.txco.com

Slide 25 - Key Indicators Confirm Growth

Slide contains a data box and three bar charts:

·   TXCO's Rolling 3-Year Metrics 2003 - 2005

·   Production Replacement - 220%

·   Drillbit Gross Profit ROI - 185%

·   Drillbit F&D Cost/Mcfe - $2.98

·   J.S. Herold's Smallcap Universe drillbit F&D cost/Mcfe:  $3.14

·   Chart 1 -- Bar chart indicating EBITDA, EBITDAX by year in millions for 2001 through 2005 and for 9 mo. 2006. Actual dollar amounts not indicated. EBITDA ranges from approximately $5 million in 2001 to more than $30 million in the 9 mo. 2006 period. EBITDAX ranges from under $10 million in 2001 to more than $30 million in the 9 mo. 2006 period. A CAGR of 38% is shown for Ebitda.

·   Chart 2 -- Bar chart indicating Proved Reserves* in Bcfe by year for oil and gas for 2001 through 2005 and at June 30, 2006, as follows: Oil -- 2001 - 1.8, 2002 - 8.9, 2003 - 12.8, 2004 - 20.2, 2005 - 29.6, and 1H06 - 32.6; Gas -- 2001 - 11, 2002 - 14.7, 2003 - 15.6, 2004 - 17.7, 2005 - 9.9, and 1H06 - 8.9.

·   Chart 3 -- Bar chart indicating Total Revenues by year for 2001 through 2005 and for 9 mo. 2006 in millions. Actual dollar amounts not shown. Ranges from about $14 million in 2001 to about $67 million in 2005. A CAGR of 49% is shown over that period. 9 mo. 2006 revenues are indicated at more than $55 million. *  Reflects sale to EnCana at Sept. 1, 2005

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Slide 26 - 12-Month Comparative Stock Performance

Line chart shows stock performance for TXCO, TXCO Peers, S&P 500 and Dow Jones weekly for 2006. Beginning and ending prices labeled as $9.92 and $12.04, respectively. Sections are labeled, as follows:

·   March / April 2006 -- A.G. Edwards, BMO, C.K. Cooper Upgrades

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 27 - Growing Share of Institutional Ownership

Chart indicating number of institutional investors, by year from 2000 through present, with percentage of shares held by institutions indicated for 2002 and later periods, as follows: 2000 -- 1; 2001 -- 4; 2002 -- 21 -- 9%; 2003 -- 18 -- 14%; 2004 -- 29 -- 37%; 2005 -- 33 -- 39%; and 2006 -- 113 -- 54%.

·   Added to Russell 3000 Index and NASDAQ's Global Select Market in 2006

·   At YE 2006:

·   33.2 million shares outstanding

·   375,000 shares, 3-month average daily volume

Slide 28 - Why Own TXCO Now?

·   Dominate Maverick Basin Position

·   Growing Glen Rose Porosity oil sales

·   Multiple resource plays

·   1,000's of potential drilling prospects

·   Integrated infrastructure

·   EnCana JV: Accelerates Growth, Validates Acreage Value

·   3 Growth Catalysts Offer High-Impact Potential

·   San Miguel oil sands project

·   Pearsall shale play

·   Marfa Basin -- West Texas shale play

·   Exploration Team with Proven Track Record

Slide 29 - Continuing Growth

Visit us on the Web at www.txco.com

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Slide 30 - Appendix

·   Acreage Position -- Gross / net mineral acres held under lease or option

·   AverageDaily 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.

·   Bbls -- Barrels of oil.

·   BOPD / BOEPD -- Barrels of oil per day / Barrels of oil equivalent per day

·   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.

·   EUR -- Estimated ultimate recovery, as estimated by independent reservoir engineers.

·   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

·   Proved Reserves -- Interim estimates internally generated. Year-end estimates prepared by independent reservoir engineers. Reserve estimates prepared in accordance with SEC and FASB requirements.

·   ROI -- Return on investment

·   TOC -- Total organic carbon present in a formation. A basic chemical analysis of source rock.

·   WI -- Working interest

Slide 31 - Addendum

Slide 32 - West Texas Shale Play

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.

·   Underexplored Marfa Basin lies along Ouachita Overthrust

Slide 33 - Marfa Basin Well Log Cross Section

Copy of logs for Exxon's J.P. Kennedy #1, El Paso Natural Gas Co.'s Simpson #1 and Pure Oil Co's J.F. Lane #1 wells. Each log indicates the Pennsylvanian / Mississippian Gas-Bearing Shale Wedge (Barnett Shale), the Mississippian Lime, Woodford Shale and Devonian portions.

·   Wells logs from the 1960s-1970s confirm gas shows

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