U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
Gose, Thomas H.
500 North Loop 1604 East,Suite 250
San Antonio, TX 78232
2. Issuer Name and Ticker or Trading Symbol
THE EXPLORATION COMPANY TXCO
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
12/31/97
If Amendment, Date of Original (Month/Year)
Relationship of Reporting Person to Issuer (Check all applicable)
(x) Director (x) 10% Owner ( ) Officer (give title below)
( ) Other (specify below)
<TABLE>
<CAPTION>
___________________________________________________________________________________________________________________________________
Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
| Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership |
| | | | Beneficially |(D)or | |
| | | | | A/| | Owned at |Indir | |
| Date |Code|V| Amount | D | Price | End of Year |ect(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C><C> <C> <C> <C> <C> <C>
Common Stock, $0.01 par |12/31/|G |J|16750 |D |GIFTED |16750 |I |BY RETAMCO PROPERTIES |
value |97 | | | | | | | | |
| | |[| | | | | | |
| | |1| | | | | | |
| | |]| | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Common Stock, $0.01 par |12/31/|G |J|10000 |D |GIFTED |10000 |I |BY SPECTRUM HOLDINGS, |
value |97 | | | | | | | | |
| | |[| | | | | | |
| | |2| | | | | | |
| | |]| | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Common Stock, $0.01 par |12/31/|G |J|594815 |D |GIFTED |594815 |I |BY RETAMCO OPERATING |
value |97 | | | | | | | | |
| | |[| | | | | | |
| | |3| | | | | | |
| | |]| | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Common Stock, $0.01 par |12/31/|G |J|465035 |D |GIFTED |465035 |I |BY SPECTRUM RESOURCES |
value |97 | | | | | | | | |
| | |[| | | | | | |
| | |4| | | | | | |
| | |]| | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
<CAPTION>
___________________________________________________________________________________________________________________________________
Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva- | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity |Date |Code|V| Amount | |ble | | | |Year |(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
1. Thomas H. Gose previously owned 100% of outstanding stock of Retamco
Properties, Inc. This corporation owned 33,500 shares of TXCO common stock
prior to the gift on December 31, 1997, of 50% of Retamco Properties, Inc. stock
by Mr. Thomas H. Gose to two parties, in equal shares of 25% each, to Mr.
Stephen M. Gose, Jr and his spouse, Margaret Ann Gose.
2. Thomas H. Gose previously owned 100% of outstanding stock of Spectrum
Holdings, Inc. This corporation owned 20,000 shares of TXCO common stock prior
to the gift, on December 31, 1997 of 50% of Spectrum Holdings, Inc. stock by Mr.
Thomas H. Gose to two parties, in equal shares of 25% each, to Mr. Stephen M.
Gose, Jr. and his spouse, Margaret Ann Gose.
3. Thomas H. Gose previously owned 100% of outstanding stock of Retamco
Operating, Inc. This corporation owned 1,189,630 shares of TXCO common stock
prior to the gift, on December 31, 1997 of 50% of Retamco Operating, Inc. stock
owned by Mr. Thomas H. Gose to two parties, in equal shares of 25% each, to Mr.
Stephen M. Gose, Jr. and his spouse, Margaret Ann Gose.
4. Thomas H. Gose previously owned 100% of outstanding stock of Spectrum
Resources, Inc. This corporation owned 930,070 shares of TXCO common stock
prior to the gift, on December 31, 1997 of 50% of Spectrum Resources, Inc. stock
owned by Mr. Thomas H. Gose to two parties, in equal shares of 25% each, to Mr.
Stephen M. Gose, Jr. and his spouse, Margaret Ann Gose.
THOMAS H. GOSE
SIGNATURE OF REPORTING PERSON
DATE
1/23/98
