Business for a Better Tomorrow
“A better environment is a better future.”
An Environmental Services
Provider to the Oil & Gas Industry
National Investment Banking Association Conference - June 16, 2011
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.
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M.B. Environmental
Services, LLC
TexCom Gulf Disposal, LLC
Operating Company
Permits Pending
12 Years of Operation
20% Owned by TexCom
90% Owned by TexCom
Nonhazardous Industrial
Wastewater Disposal
E&P Waste Disposal
Development Stage
3
• Traditional
• Drilling Waste (NOW)
• Produced Water
• Tank and Truck Washouts
• New
• Frac Water (Shale Gas Production)
• Naturally Occurring Radioactive
Material (NORM)
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Name
Lou Ross
Title
President and Chairman
Background / Experience and Prior Positions
 Vice President, Planning and Development – Westlake Chemicals
 Managing Director for Research , Engineering and Business Planning –
Chemicals Group of United States Steel Corporation
 Worldwide Director of Chemicals Business Planning – Gulf Oil Corporation
 Manager, Planning and Development – Gulf Oil Corporation, Petrochemicals
Division
Britt Brooks
Executive Vice President,
Secretary and Director
 Former Vice President and Director – Texas Commercial Resources
 Director Sabine Resources, Inc.
 17 years experience in Small Cap Finance
Jay Charles
General Manager, Biodiesel
 Managing Partner – GlobalNet, Inc.
 Executive Vice President and General Manager – C&L Communications, Inc.
 Permitted and Developed 3 Biodiesel Plants in Texas
Matt
McEneny
General Manager, Disposal
 Corporate Director, Environmental Health & Safety – Burlington Resources
 Amoco Production Co. - Regional Safety Engineer
Don Black
President , M.B.
Environmental Services, LLC
 More than 45 years of experience in oil and gas drilling in major oil
producing regions around the globe.
 Spent 12 years in the North Sea as the Drilling Superintendent for six
offshore drilling rigs
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 Exchange/Ticker:
OTC Markets: 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
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Disposes of Wastes from Oilfield Operations
Unit
Saltwater
Bbl
$
0.39
$43.20
Other Liquids
Bbl
$
3.96
$475.20
NORM Waste
Bbl
$ 123.05
Truck
$ 180.17
Truck Washout
Avg. 2010 Price
Truckload Value
(120 Barrels)
Product
$12,305.00
7
$9,000
$8,000
$1,479
$7,000
$6,000
$790
$859
$5,000
$4,694
$2,992
$4,000
$3,202
$3,000
$491
$2,000
$1,000
$0
$1,781
$2,531
2009
2010
$1,641
$403
2007
NORM
$2,500
NOW
2008
Truck Washouts
Transfer Facility
Other
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(Millions)
2007
2008
2009
2010
Q-1 2011
2.80
$ 6.00
$ 6.80
$ 8.80
$2.60
Revenue:
$
Net Income
$ (3.50)
$ (1.20)
$ 0.10
$ 0.90
$0.84
($0.10)
($0.04)
$0.02
$0.02
$0.014
50
56
64
Earnings Per Share:
Weighted Average Shares:
39
44
Notes:
1. Compound Annual Revenue Growth Rate ("CAGR") of 41.4%
2. Our facility currently handles approximately 60 barrels of NORM per day (approximately $7,600 Revenue)
3. We can handle 2,000 NORM barrels ($254,000/day) and the material is out there.
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 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 NORM related Business-to-Business litigation
associated with producing oilfield property transactions
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• 10 million barrels of NORM in existence in 1995
• Cost to remediate and dispose estimated at
$3.5 to $5.5 Billion and growing.
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 over 60% more producing wells now than in 1995.
We estimate that only a small fraction of NORM in equipment has been removed.
TexCom 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 could be
considered a “Pure Play.”
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12
Environmental
Engineering
Firms
TexCom is working to position upstream in
NORM Engineering and NORM Decontamination
DECON
SITE
DISPOSAL
Vertical
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Existing Sites
Expansion potential
Oil Production
Gas Production
Mixed Production
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The Eagle Ford shale covers an area covers a 24-county area 50 miles wide and 400 miles long
stretching from northeast of San Antonio to Maverick and Webb counties on the U.S.-Mexico border.
Producing oil and gas from a new oil play follows a predictable pattern once initial wells have proven
economic.
Activity – January 21, 2010
Activity – November 8, 2010
1
5
Permits will become drilled wells within 24 months.
* Each rig can drill about 16 wells year.
1. Leasing - rights to underground minerals are leased from their owners in blocks.
2. Permitting – oil and gas companies obtain permits to drill wells from governing agencies.
3. Drilling – rigs are brought in from other regions to begin drilling programs. Large modern
rigs are expensive to move, taking a great many trucks to transport each drilling rig.
4. Result: Too much drilling waste and not enough disposal capacity.
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3,034 Wells have been permitted in Railroad Commission Districts 1 through 4 over the twelve months ending 4/1/2011. Our immediate
market counties: Atascosa – 72, Karnes – 290, LaSalle – 358, McMullen – 344 received 1,064 permits
During that same time period the counties surrounding MB Energy: Liberty, Chambers, Jefferson and Hardin had 60, 86, 72 and 99
permits respectively. We generated approximately $7 Million in revenue from drilling and production waste disposal during that period.
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Median Price / LTM Earnings (3Q 2010 vs. 10 Yr Avg)
10 Year Average
Q3
Source: Madison Williams &
Co.
33.5
Medical Waste
17.2
22.9
Nuclear Waste
12.6
16.7
Metals Recycling
18.7
22.4
Water/Wastewater
20.1
27.3
Hazardous Waste
16.8
20.4
E&C
17.1
22.3
Recycling
16.4
22.1
23.1
Solid Waste
0
5
10
15
20
25
30
35 18
Q-1 2011 vs Q-1 2010
Sales
2011
2010
$2,638,580
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
18%
$2,240,637
991,153
696,376
42%
1,647,427
1,544,261
7%
393,340
388,926
1%
1,254,087
1,155,335
9%
655
-1,200
N/A
-278,934
-308,700
-10%
-278,279
-309,900
-10%
-
-
975,808
845,435
15%
-141,304
-184,394
-23%
Other income (expense)
Other
Interest expense
Total other income (expense)
Income before provision for income taxes and non-controlling interest
Provision for income taxes
Net income before non-controlling interest
Income attributable to non-controlling interest
Net income (loss) available to common shareholders
Income (loss) per share – basic and diluted:
Weighted average common shares outstanding - basic and diluted
EBIT to TexCom's Current Ownership
$834,504
$661,041
$0.013
$0.013
63,979,285
$1,113,438
26%
51,691,893
24%
$969,741
15%
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Business for a Better Tomorrow
“A better environment is a better future.”
Questions?
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 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)
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23
WHERE ELSE DOES NORM ACCUMULATE?
In Wellheads
On Smart Pigs that
Clean Pipelines
In Storage Tanks
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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.
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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
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