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Business for a Better Tomorrow. “A better environment is a better future.”. An Environmental Services Provider to the Oil & Gas Industry. National Eagles and Angels Association • April 2011. Forward-Looking Statements.

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National Eagles and Angels Association • April 2011

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National eagles and angels association april 2011

Business for a Better Tomorrow

“A better environment is a better future.”

An Environmental Services Provider to the Oil & Gas Industry

National Eagles and Angels Association • April 2011


National eagles and angels association april 2011

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 as amended (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 are 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. Such risks and uncertainties are set forth herein.

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 oil prices, soybean prices, soybean oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating and forecasting production results, political conditions in Paraguay, 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 any forward-looking statements.

The information contained herein is offered for informational purposes only. None of this information is to be construed as an offer to buy or sell securities.


National eagles and angels association april 2011

Organizational Structure


National eagles and angels association april 2011

Waste Disposal Issues for Oil and Gas Industry

  • Traditional

    • Drilling Waste (NOW)

    • Produced Water

    • Tank and Truck Washouts

  • New

    • Naturally Occurring Radioactive Material (NORM)

    • Frac Water (Shale Gas Production)


National eagles and angels association april 2011

What is NORM?

  • Radioactive Radium is present everywhere in Earth’s crust

  • Dissolves in underground saltwater

  • Deposits along with other minerals as scale

  • In oil and gas production, scale precipitates from saltwater brought to surface due to decrease in temperature and pressure

  • In the oilfield, scale builds up on well tubing and in surface gathering equipment (pipelines, pumps and storage tanks)


National eagles and angels association april 2011

Threat to Public Safety

Radium/NORM poses little human health risk when held in place in pipe, tankage, etc.

It does, however, pose a threat when particles become airborne and/or are leached into the groundwater.


National eagles and angels association april 2011

WHERE ELSE DOES NORM ACCUMULATE?

Where Else Does NORM Accumulate?

In Wellheads

On Smart Pigs that Clean Pipelines

In Storage Tanks


National eagles and angels association april 2011

How Much NORM Is Out There?

  • 10 million barrels of NORM in existence in 1995

  • Cost to remediate and dispose estimated at $3.5 Billion

At 1995 rates of oil and gas production, additional amounts of NORM being generated were estimated to be 140,000 to as much as 640,000 barrels per year. There are well over 60% more producing wells now than in 1995.

We estimate that less than 35 thousand barrelsof NORM per year have been removed from existing equipment and properly remediated and disposed since then.


National eagles and angels association april 2011

Potential U.S. Market for NORM Disposal

  • The total cost to mobilize, decontaminate and dispose of just the existing NORM in oilfield equipment (pipes, tanks, batteries, wellheads, etc.) over a 20 year period is estimated to be in the range of $3.5 Billion to $5.5 Billion.

  • Options to dispose of NORM in approved, permitted facilities are limited.

  • M.B. Environmental is one of only four companies permitted to dispose of NORM by underground injection.

  • TexCom is one of only two public companies that dispose of NORM and the ONLY Public Engineering and Disposal “Pure Play.”


National eagles and angels association april 2011

E&P Waste Disposal Drivers

  • Non-hazardous Oilfield Waste Disposal (NOW)

    • Increase in active drilling rigs in region

    • Increased number of producing oil and gas wells in region

  • Naturally Occurring Radioactive Material (NORM)

    • Increased regulatory enforcement

    • Billion dollar judgment against Exxon in 2004

    • Growing Business-to-Business litigation associated with producing oilfield property transactions


National eagles and angels association april 2011

M.B. Environmental Services, LLC

  • Disposes of Wastes from Oilfield Operations

  • Drilling Wastes

  • Oil-Based Drilling Muds

  • Water-Based Drilling Muds

  • Produced Salt Water

  • Truck and Tank Washouts

  • Naturally Occurring Radioactive Materials (NORM)


National eagles and angels association april 2011

M.B. Environmental Services, LLC

  • Differentiated from Competition

    • Most Class II wells inject into depleted oil and gas formations; only accept produced water

  • Our wells are drilled into fractured Caprock on flank of salt dome

  • Can accept mixtures of solids slurried in water

    • That allows us to inject NORM scale and sludge underground

  • One of four companies permitted to dispose of NORM by underground injection


National eagles and angels association april 2011

Blue Chip Customer Base


National eagles and angels association april 2011

Revenue by Waste Stream (millions)

$8.8

Reflected in millions

$6.6

$6.2

$3.1

$3.0

$2.3

$2.7


National eagles and angels association april 2011

Sustainable Profitability Achieved

Net Income/loss reflected in thousands


National eagles and angels association april 2011

How TexCom is Addressing the Problem &

Exploiting the Opportunity

  • We have:

    • the permits in place

    • the right site with required geology

    • ample disposal capacity

    • qualified environmental personnel

    • 10 years experience in disposal of NORM

    • world class customer base

    • knowledge


National eagles and angels association april 2011

Vertical Integration in a Large Market

Environmental

Engineering

Firms

TexCom is working to position upstream in NORM Engineering and NORM Decontamination

DISPOSAL

DECON

SITE

Vertical


National eagles and angels association april 2011

Our Path to Major Growth in NORM Disposal

  • Vertically Integrate into Engineering Services and Decontamination Operations.

  • Add Capabilities to provide Licensed Engineering Consulting and Decontamination Services

  • Expand NORM disposal capacity

  • Target Market to Major E&P Companies

  • Acquire or develop disposal facilities in:

    • South Texas (Eagle Ford Shale)

    • Louisiana (Haynesville Shale)


National eagles and angels association april 2011

Potential Revenue Growth – M.B. Environmental

Reflected in Millions

Normalized Gross Profit Margins range from 40% - 70% of Revenue


National eagles and angels association april 2011

TEXC Corporate Snapshot

  • Exchange/Ticker:Pink Sheets: TEXC

  • Market Capitalization:$13.26 Million

  • Basic Shares Outstanding:63.16 Million

  • Headquarters:Houston, Texas

  • Number of Employees:22

  • Websites:www.texcomresources.com

    • www.mbenvironmental.net


National eagles and angels association april 2011

Horizontal Integration

Oil Production

Gas Production

Mixed Production

Existing Sites

Expansionpotential


National eagles and angels association april 2011

Where is our next site to be?

20

24

5


National eagles and angels association april 2011

Where is our next site to be?

20

5

24

5

22

161

6

Eagle Ford Shale Wells Permitted Dec. 2010

24


National eagles and angels association april 2011

Eagle Ford Shale – 170 new wells drilled/month

Source: Tobin Trends


National eagles and angels association april 2011

Business for a Better Tomorrow

“A better environment is a better future.”

Questions?


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