HOUSTON, April 5 /PRNewswire-FirstCall/ -- TexCom, Inc. (Pink Sheets: TEXC) today published the following shareholder letter. I am writing today to highlight TexCom's major achievements, successes and operational results in 2006, and to let you know about some upcoming events. For those of you who wish to review our 2006 year-end financial statements, they are available to you at Pink Sheets -- Electronic Quotation and Trading System for OTC Securities (http://www.pinksheets.com/quote/finance.jsp?symbol=TEXC ). If you would like printed copies of the financial reports sent to you, please contact the TexCom office and we will be happy to send them. TexCom reached several key milestones in our corporate development during 2006. We implemented the first phases of our Biodiesel Business Plan by closing on numerous transactions leading to the construction of our first, world-class biodiesel plant at the LBC Houston Terminal in Seabrook, Texas. The financial structure we arranged for the new biodiesel company results in Texcom having a 43.75% ownership in Houston Biodiesel, LLC, the company that will own and operate the 35 million gallon per year production facility. Our equity partner, US Biodiesel Group, will own the remaining 56.25% of the operating LLC. TexCom will be responsible for operation of the production facility under an Asset Management Agreement. TexCom's management chose to finance the transaction in this manner in order to accelerate our entry into biodiesel production while limiting our own requirement for capital, capitalize on the financial strength, skill sets and relationships of our strategic partner, and maximize shareholder value. In order to fund most of TexCom's capital investment in this facility, we raised approximately $4.25 million by way of sale of Series A Convertible Preferred Stock through the Financial West Group, a broker-dealer headquartered in California with offices throughout the United States. A groundbreaking ceremony for the Houston Biodiesel plant was held on December 21, 2006. Construction activities are currently in progress and commencement of commercial operations is scheduled to begin in December of this year. At current prices for biodiesel fuel, revenues generated by this facility at full capacity are projected to be in excess of $100 million annually. Prior to plant startup, we anticipate that Texcom will receive approximately $1 million in cash flow in 2007 from project development and asset management fees associated with the Houston Biodiesel facility. In 2006, management made the decision to focus on our two core businesses; biodiesel and non-hazardous waste disposal. In furtherance of that focus, we disposed of two of our business segments that no longer fit with our strategic goals; (1) the oil and gas exploration & production arm and (2) the private aircraft maintenance and repair operation. M. B. Energy, TexCom's oil & gas waste disposal operations, performed well with record-level revenues and profits for 2006. To continue development of this platform, we acquired a second site at Luling, Texas, late in the year. We are presently in the process of having the operating permits for that site transferred to TexCom. Concurrently, another milestone was reached in regard to our Class I non-hazardous wastewater injection site near Conroe, TX. We were notified that the Executive Director of the Texas Commission on Environmental Quality had made a preliminary decision to approve the permit application based on meeting technical and administrative requirements and we received draft permits for the site. While the regulatory process involving the period for public comment and opportunity for a public meeting is not yet fully behind us, we expect to achieve final action on our application during 2007. We have applied for permits for four deep-injection wells on our 27 acre site, the first of which is already completed and ready to be out in operation when the permits are issued by the state. This first well will have waste disposal capacity to produce annual revenues of over $15 million at current market prices. Included among TexCom's goals for 2007 are: * Continue to systematically develop biodiesel projects in our region. The company believes renewable energy is a viable, long-term contributor to solving the country's energy needs and reducing its dependence on foreign oil while improving the environmental impact of energy production. We are currently developing projects in Corpus Christi, TX and Ardmore, OK and researching other suitable sites. We are investigating options to secure long-term, stable feedstock supply for these plants, including relationships with existing suppliers of vegetable oils and animal fats as well as with potential partners involved in new, emerging technologies including jatropha plantations and algae oil. * Expand our waste disposal operations. The company has created significant, non-correlated shareholder value through its disposal operations and projects, and has resources to maximize shareholder return in this business segment. The disposal business will continue to provide needed income to the company until the biodiesel plants produce distributable earnings. * Improve shareholder information distribution. The company has recently begun participating in Standard & Poor's Market Program making available the company's financial information to broker-dealers around the country. Additionally, we are continuing to pursue becoming a full filing company with the SEC, following which we will apply for listing on a major exchange. For more information, please visit the company website at http://www.texcomresources.com . Forward-Looking Statements Statements contained herein and the information incorporated by reference herein may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements can be identified by the use of forward-looking terminology such as, but not limited to, "may," "will," "expect," "anticipate," "estimate," "would be," "believe," or "continue" or the negative or other variations of comparable terminology. We intend such forward-looking statements to be covered by the safe harbor provisions applicable to forward-looking statements contained in Section 21E of the Exchange Act. Such statements (none of which is intended as a guarantee of performance) are subject to certain assumptions, risks and uncertainties, which could cause our actual future results, achievements or transactions to differ materially from those projected or anticipated. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demands and acceptance, changes in technology, economic conditions, the impact of competition and pricing, and government regulation and approvals. TexCom cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those TexCom expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. Our expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, including without limitation, our examination of historical operating trends, data contained in our records and other data available from third parties. There can be no assurance, however, that our expectations, beliefs or projections will result, be achieved, or be accomplished. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no duty to update these forward-looking statements. Contacts: Piedmont IR Keith Fetter/Darren Bankston (678) 455-6049 email@example.com TexCom, Inc. Britt Brooks 713-914-9193 firstname.lastname@example.org
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