TexCom 2006 Operating Results Shareholder Letter

Apr 05, 2007, 01:00 ET from TexCom, Inc.

    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
      Piedmont IR
      Keith Fetter/Darren Bankston
      (678) 455-6049
      TexCom, Inc.
      Britt Brooks 713-914-9193

SOURCE TexCom, Inc.