TXCO Resources Inc.

San Antonio, Texas-based TXCO Resources Inc. (Nasdaq: TXCO) has retained Goldman Sachs & Co. to review strategic alternatives that could result in a merger or sale of the company. At year-end 2007, TXCO had proved reserves of 91.8 billion cubic feet equivalent (59% proved developed; 54% oil). 2007 total production was 7.9 billion equivalent. It held 167,000 gross developed acres (62,225 net) and 854,400 gross undeveloped acres (650,000 net) in Texas, Oklahoma and Louisiana. Assets included 777 gross producing wells (427 net). TXCO core operations are in the Maverick Basin of South Texas with 1.1 million gross acres (683,700 net) prospective for the Pearsall and Eagleford shales, and the San Miguel heavy oil sands. It also holds interests in the Marfa Basin in West Texas, the Fort Trinidad area of East Texas, and in the Midcontinent region of western Oklahoma. TXCO chief executive James E. Sigmon says, "TXCO continues to have outstanding long-term growth opportunities. We remain in an early stage of development, considering the large acreage position we have for a firm our size and the potential of our multiple resource plays. We are exploring all strategic alternatives to assure that we can maximize value for our shareholders as we adapt to the industry's current, unstable financial and commodity price environment."