Small-cap Oil Company Shrinks (TXCO)

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Small-cap oil producer TXCO Resources Inc. (NASDAQ:TXCO) announced a few days before the holiday that it would reduce staff by 20%, slow its fourth-quarter drilling operations, and shut-in five wells and two steam generators in response to the "unstable financial and commodity environment we currently face." The company also expects to announce lower 2009 capital expenditures in January and to seek buyers for some assets and partners in joint-ventures "to further enhance liquidity levels."

This is, by now, a familiar story. TXCO shares are trading this morning at $1.37, just a penny above the 52-week low and more than 90% off the 52-week high.

Paul Ausick
December 26, 200