TXCO Resources has begun a strategic alternatives review designed to enhance shareholder value, which may include a merger or sale. Goldman Sachs & Company has been retained as financial advisor.

No formal decisions have been made and no agreements have been reached at this time. There can be no assurance that any particular alternative will be pursued or that any transaction will occur, or on what terms. TXCO does not expect to disclose developments from this review unless its board of directors approves a definitive transaction.

“TXCO continues to have outstanding long-term growth opportunities,” said CEO James E. Sigmon. “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.”

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