Friday, August 26, 2011

Life After Biofuel

Management of TexCom Resources, Inc. (TEXC:  OTC/PK) has a story to tell.  It could be a tale of woe.  Britt Brooks, Executive Vice President and Director, tells it as a survival story.  They company started out as another aspirant to produce renewable fuel.  Commercial success eluded the company.  Early on the decision was made to redirect the Company's technologies to a market that was within reach  -  environmental clean up.

TexCom is targeting the market for clean up of naturally occurring radioactive, a nuisance common in the pipes and wells of the oil and gas industry, and wastewater by-products in from oil fields.  Increased drilling for oil and gas in Texas and the Gulf Coast and increasing use of "fracturing" to enhance yields have supported growth in oil field waste collection. 

Since turning to oil field services, TexCom operations have turned highly profitable even if on a low revenue level.  Management is guiding for a profit of $3 million in net income on $10.3 million in revenue in the year 2011.

The company recently acquired a new disposal site in south Texas that is within close proximity to growing number of wells in the Eagle Ford Shale region.  The company's site in Altascosa County in Texas is also near a high concentration of oil rigs.  TexCom as a growing list of customers that already includes some of the leading oil and gas producers.

TexCom is a fully reporting company even though it still trades on the Pink Sheets.  Accordingly, it is a company with readily available financial information.  TEXC has been added to our Mothers of Invention Index in the Waste Reclamation Group.

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.  TEXC is included in the Waste Reclamation Group of the Mothers of Invention Index for alternative energy companies.

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