TXCO Resources Inc. today commented on Third Point LLC and its various affiliates’ desire to nominate three directors for election to the Company’s Board of Directors at TXCO’s 2008 Annual Meeting of Stockholders.

"We have always maintained an open dialogue with all of our stockholders," said CEO James E. Sigmon. "We have had limited contact with Third Point and have listened to their views. To date, the views expressed by Third Point center around or have been limited to their desire to nominate an alternate slate of directors. As we previously stated, we believe the allegations in the lawsuit filed by Third Point are without merit and intend to vigorously defend the suit.

"Additionally, we are prepared to have a continuing and constructive dialogue with all our shareholders regarding our operating strategies," Sigmon added. "The Board of Directors regularly reviews the value inherent in the Company’s business plan, and will continue to do so in a measured and decisive way. While a disruptive proxy contest is not a preferable course of action, the Company is prepared to do everything necessary to protect the interests of all TXCO stockholders consistent with our goal of delivering high performance and long-term stockholder value."

Tags: TXCO Resources Inc.