SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549
                    ----------------------------
                             FORM 10-KSB
               ANNUAL REPORT UNDER SECTION 13 OR 15(d)
               OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2006      Commission File No. 000-24778


                     TEXAS VANGUARD OIL COMPANY
       (Name of small business issuer in its charter)

          Texas                                          74-2075344
(State or other jurisdiction of                        (IRS Employer
 incorporation or organization)                      Identification No.)

                  9811 Anderson Mill Rd., Suite 202
                         Austin, Texas 78750
            (Address of Principal Executive Offices)

           Issuers telephone number (512)331-6781

   Securities Registered Under Section 12(b) of the Exchange Act:
                               None

   Securities registered under Section 12(g) of the Exchange Act:
                               None

Check whether the Issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements
for the past 90 days.  Yes [X] or No [ ].

Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B contained in this form, and no disclosure will be contained,
to the best of registrants knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB.  [X]

Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).  Yes [ ] or No [X]

The issuers revenues for the fiscal year ended December 31, 2006 were
 $7,210,171.

The aggregate market value of the voting common equity held by non-affiliates of
the registrant on March 1, 2007, was $2,546,211, based on that days average bid
and asked price on the Over-the-Counter Bulletin Board.

The number of shares of the registrants common stock as of March 1, 2007, was
1,416,587.

                 DOCUMENTS INCORPORATED BY REFERENCE

The registrants definitive proxy statement regarding the election of directors
at the registrants 2006 Annual Stockholders Meeting filed or to be filed with
the Commission  on or before April 30, 2007, has been incorporated by reference
in Part III of this report.


                                PART I


ITEM  1.  BUSINESS

General

   Texas Vanguard Oil Company (the "Company" or "Registrant") was incorporated
under  the laws of the state of Texas on December 4, 1979. The business of the
Company  is  to  engage  in the  acquisition,  exploration,  development,  and
operation of onshore oil and gas  properties in the United States, principally
in  Texas.   In  April 1980,  the Company  completed a  public offering of its
securities netting  approximately $1,250,000 from the sale of 1,500,000 shares
of common stock to the public.

  The Company engages in oil and natural gas exploration, development and
production  in Texas, New Mexico,  and  Wyoming.  Generally, the  Company
acquires  operated  working interests  in producing oil  and natural  gas
properties which it further develops.

   The executive offices of the Company are located at 9811 Anderson Mill Rd.,
Suite 202, Austin, Texas 78750 and its telephone number is (512) 331-6781.

Markets for Oil and Gas

   The market for the Company's primary products, oil and gas, depends upon a
number of factors, including the availability of other domestic production,
crude oil imports, the proximity and size of oil and gas pipelines and general
fluctuations in the supply and demand for oil and gas. At present, the Company
sells all of its production to traditional industry purchasers, such as
pipeline and crude oil companies, who have the facilities to transport the
oil and gas from the well site. The Company has recorded revenues in excess
of 10% of total revenue from  Duke Energy (25% in 2006 and 27% in 2005)
and Plains Marketing (50% in 2006 and 49% in 2005).
The Company does not believe that the loss of a major purchaser would have
a materially adverse effect on the Company because oil production can be
sold to  other oil purchasers at a comparable price. Oil sales are made
under a written contract generally not more than one year in length.
The nature of the Company's business is not seasonal except to the extent
that adverse weather conditions could affect oil and gas exploration and
production activities. The Company currently has no intention of refining
or marketing its own oil and gas.  Since the Company engages independent
contractors for the drilling of any wells, it does not plan to own any
significant amount of drilling equipment. The Company does not contemplate
any material product research and development, any material acquisition of
plants or equipment, or any material changes in its number of employees in
the near future.

Competition

   The oil and gas industry is highly competitive in all aspects. The Company
competes with major oil companies, numerous independent oil and gas producers,
individual proprietors, and investment programs. Many of these competitors
possess financial and personnel resources substantially in excess of those which
are available to the Company and may, therefore, be able to pay greater amounts
for desirable leases and to define, evaluate, bid for, and purchase a greater
number of potential producing prospects than the Company's own resources permit.
The Company's ability to generate resources will depend not only on its ability
to develop existing properties, but also on its ability to identify and acquire
proven and unproven acreage and prospects for future exploration.

Environmental Matters

   The Company's operations are subject to numerous federal, state and local
laws and regulations controlling the discharge of materials into the environment
or otherwise relating to the protection of the environment. Such matters have
not had a material effect on operations of the Company to date, but the Company
cannot predict whether such matters will have any material effect on its capital
expenditures, earnings or competitive position in the future.

Regulations

  The production and sale of crude oil and natural gas are currently subject
to extensive regulation of both federal and state authorities. At the federal
level  there are price regulations and income tax laws. At the state level,
there are severance taxes, proration of production, spacing of wells,
prevention and clean-up of pollution and permits to drill and produce oil
and gas. Although compliance with their laws and regulations has not had a
materially adverse effect on the Company's operations, the Company cannot
predict whether its future operations will be adversely affected thereby.

Employees

  The Company's officers actively manage the Company's activities. There are
no employment contracts with any officers. At December 31, 2006, the Company
had two full-time salaried employees. From time to time the Company engages
independent petroleum engineers, geologists and landmen on a fee basis.
Both William Watson and Linda Watson are directors of companies that have oil
and gas interests. Due to this situation a conflict of interest may arise.
However, there have been no such conflicts in the past five years.

ITEM 2. PROPERTIES

  The Company owns no significant properties other than oil and gas properties.
It leases approximately 2,000 square feet of space for its executive offices at
9811 Anderson Mill Rd., Suite 202, Austin, Texas 78750. The Company currently
has a month-to-month lease with a company owned by the Chairman of the Company
for these  facilities.  The rent for these facilities is $2,100 per month.

Well Activity

   During 2006, the Company participated in the drilling of four wells.  Two
wells were completed as oil producers, one as a gas producer and one was plugged
and abandoned. The Company also acquired interest in four producing wells. Two
wells are oil producers and two are gas producers. In addition, the Company
acquired additional interest in 39 well which we operate.
All of the Company's oil and gas working and royalty interests, reserves and
activities are located onshore in the continental United States. The following
table sets forth the drilling and acquisition activity of the Company, for the
years ended December 31, 2005 and 2006.

Fiscal years         Oil                      Gas                   Dry
  ended
December 31,   Gross    Net            Gross        Net      Gross       Net

2005            10      6.73             16        3.55       ---       ---
2006            39      2.54              7        0.42        1        0.1

(1)   A gross well is a well in which the Company has an interest.

(2)   A net well is made up of 100% of the working interest in a well. If the
      Company has a 12.5% working interest in a well, .125 is shown in the net
      well column.

(3)   A dry well is a well found to be incapable of producing oil or gas in
      sufficient quantities to justify completion of the well.

(4)   In 2006, the Company participated in the drilling of four new wells. Two
      were completed as oil wells, one as a gas well and one was plugged.

   The Company is not obligated to provide a fixed and determinable quantity of
oil or gas in the future under existing contracts or agreements.

Significant Properties

   Over the past two years, the Company has made investments in proven oil
and gas properties that in the aggregate have been significant to the Company.
None  of the  individual properties  has cost  more  than 15%  of the average
balance in oil and gas properties at the time of purchase.  These investments
have been made in different fields and areas, primarily in south, central and
west Texas. As of December 31,2006, the Company does not have any single
property that is significant enough to materially affect its operations.

   As of December 31, 2006, the Company has pledged its interest in certain
properties  and  well  equipment  against bank notes payable.   None of the
individual properties  are significant.

Productive Wells and Acreage

   The following table sets forth by Texas, Wyoming, Oklahoma, New Mexico
and Nebraska counties the Company's gross and net productive wells and
developed acreage as of December 31, 2006.

                       Producing Wells (a)                    Developed
                       Oil            Gas                     Acreage (a)
County          Gross   Net     Gross        Net          Gross           Net

Bastrop (b)      85    65.38      46       39.16       3,208.46       2,644.71
Bee             ---      ---      18        1.55         725.70          62.52
Burleson          2     1.41     ---         ---         320.00         190.97
Chaves (c)      ---      ---       1         .50         160.00          80.00
Crane (b)        12    11.00       1         .02         160.00         109.98
Crockett        ---      ---       2        2.00         160.00         160.00
DeWitt (b)      ---      ---       2         .16         160.00          12.43
Eastland (b)    ---      ---       4         .09         122.00           1.30
Eddy (c)          1      .13       1         .02         360.00          12.03
Fayette (b)      14    12.21       1         .63       1,848.48       1,608.35
Garza (b)         3      .05     ---         ---          30.00            .47
Grimes            1     1.00     ---         ---         652.85         652.85
Hemphill        ---      ---       1         .13         700.00          87.50
Hidalgo         ---      ---       3         .34         457.86          23.39
Kent (b)         27      .67     ---         ---       1,411.65          29.49
Kimball (d)       1      .05     ---         ---          40.00           2.00
Lea (b)(c)        2      ---       1         .07         400.00          22.25
Lee (b)         112    92.30       5        4.52       2,953.40       2,183.58
Lipscomb          1      .03     ---         ---          80.00           2.50
Martin            3     2.82     ---         ---         240.19         225.74
Midland           1      .02     ---         ---          80.00           1.67
Nolan (b)         1      .03     ---         ---          40.00           1.25
Parker (b)      ---      ---       1         .01         136.91            .83
Victoria        ---      ---       1         .05          80.00           4.00
Ward (b)          1      .03       1         .13         720.00          19.20
Washington (b)    3      .21     ---         ---       1,032.92         103.29
Weston (e)        3      .94     ---         ---         120.00          37.42
Wilson            1      .95     ---         ---          80.00          76.00
Woodward (f)      1      .01     ---         ---         640.00           3.32
             ------   -------  -----       -----       --------       --------
                275   189.44      89       49.38      17,120.42       8,359.04

(a)   A gross well is a well in which the Company owns either a working
      interest or a royalty interest. A net well is the fractional interest
      owned by the Company. Gross acres are the total acres in a lease. Net
      acres are the gross acres multiplied by the Company's interest.
(b)   The Company owns overriding royalty interest in these counties.
(c)   Chaves, Eddy and Lea Counties are located in New Mexico.
(d)   Kimball County is located in Nebraska.
(e)   Weston County is located in Wyoming.
(f)   Woodward County is located in Oklahoma.

Reserve Quantity Information

   For information required by Statement of Financial Accounting Standards No.
69, "Disclosures About Oil and Gas Producing Activities," see the "Supplemental
Oil and Gas Information" section included in Item 7. This section also includes
estimates of proven oil and gas reserves.

OIL AND GAS STATISTICS

  The following summarizes the net oil and gas production, average sales prices
and production costs per unit for the years ended December 31, 2006 and 2005.


                                             2006       2005
  Oil:
     Production volume (barrels)            60,763     64,011
     Average sales price per barrel         $64.77     $53.47
  Gas:
     Production volume (MCF)               385,798    385,157
     Average sales price per MCF            $ 6.94     $ 6.72

  Average production costs per
     equivalent barrel                      $28.07     $31.31

   The worldwide crude oil prices of 2006 continue to fluctuate in 2007.
The Company cannot predict how prices will vary during 2007 and what
effect they will ultimately have on the Company.

UNDEVELOPED ACREAGE


   The following table sets forth by county the Company's gross and net
undeveloped acreage as of December 31, 2006.

           County               Gross                Net

          Andrews               384.00              192.00
          Bastrop             2,326.18            1,835.01
          Colorado              115.70              105.70
          Crane                 593.64              563.57
          Crosby              1,118.77              559.38
          DeWitt                308.00                4.43
          Eastland              199.30                2.37
          Eddy (a)              480.00               65.00
          Fayette               497.10              369.74
          Garza               2,771.10              548.51
          Kent                3,377.89            1,201.53
          Kimble                869.60               86.96
          Lea (a)             2,029.60              440.52
          Lee                 1,930.11            1,611.46
          Midland               133.33                2.78
          Weston (b)            840.00              379.75
          Wilson                129.51              123.03
                             ---------            --------
                             18,103.83            8,091.74
                             =========            ========

Of the 8,091.74 net undeveloped acres under lease, 7,821.98 net acres
are being held by production.

a) Eddy and Lea Counties are located in New Mexico
b) Weston County is located in Wyoming.

ITEM 3. LEGAL PROCEEDINGS

   The Company knows of no material litigation pending, threatening or
contemplated, or unsatisfied judgments against it, or any other proceeding in
which  the Company is a party. The Company knows of no material legal actions
pending or threatening or judgments entered against any officers on the board
of directors of the Company in their capacity as such.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

   No matters were submitted to a vote of the security holders during the
quarter ended December 31, 2006.

                               PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
        STOCKHOLDER MATTERS

   The Company's common stock is quoted on the OTC Bulletin Board with the
symbol (TVOC.OB). The range of high and low sales price for each quarterly
period during the past two years is as follows:

                                           Sales Price
                                     High                Low
      Fiscal 2006

        First Quarter               8.85               6.00
        Second Quarter              8.95               7.00
        Third Quarter               9.50               7.00
        Fourth Quarter              8.75               6.60

      Fiscal 2005

        First Quarter               4.65               3.25
        Second Quarter              8.75               3.75
        Third Quarter               8.14               5.00
        Fourth Quarter              7.30               5.10


   At December 31, 2006, the approximate number of holders of record of the
Company's common stock was 461.  The Company has not paid any dividends and has
no plans to do so in the immediate future.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

ANALYSIS OF FINANCIAL CONDITION

During the years ended December 31, 2006 cash decreased by $2,192,022
while cash increased for the year ended December 31, 2005 by $246,418.
The cash flow from operating activities in 2006 was approximately
$1,623,377, an increase of $9,778 from 2005. The cash flow from operating
activities in 2005 was approximately $1,613,599, an increase of $638,395
from 2004. The significant use of cash, other than for operating expenses,
has been investments in oil and gas properties and the reduction of debt.
Investments in oil and gas properties were $735,351 and $897,894, in 2006
and 2005, respectively. As of December 31, 2006, the Company had a cash
balance of $3,207,606, and notes payable of $156,979 as compared to the
December 31, 2005, cash balance of $5,399,628, and notes payable of
$3,164,532.

During the last two years, the Company's investment in producing
oil and gas properties was provided by cash flow from operating
activities, sales of other oil and gas properties, and from borrowings
on notes payable to banks. The Company sells selected properties when
it is more economical to sell rather than produce them.

Working capital at December 31, 2006 decreased to 5.22 to 1 from 5.35 to 1
at December 31, 2005.  The Company continued its policy of making strategic
investments in  producing oil and gas properties in the same or similar fields
to  properties  already  operated by the Company, which are primarily financed
with short-term notes payable and cash from operations.

LIQUIDITY AND CAPITAL RESOURCES

   During the current fiscal year, the Company's liquidity has remained strong
enough to meet its short-term cash needs. The sources of liquidity and capital
resources are generated from cash on hand, cash provided by operations and from
credit available from financial institutions. Management believes the Company
will be able to meet its current operating needs through internally generated
cash from operations. Management believes that oil and gas  property investing
activities in 2007 can be financed through cash on hand, cash  from  operating
activities, and bank borrowings. The Company anticipates continued investments
in proven oil and gas properties in 2007 when they can be purchased  at prices
that will provide a short payback period. If bank credit is not available, the
Company may not be able to continue  its  policy  of continued  investment  in
strategic oil and gas  properties.  The Company cannot predict how oil and gas
prices will fluctuate during 2007 and what effect they will ultimately have on
the Company, but management believes that the Company will be able to generate
sufficient cash from  operations  to service  its bank  debt and  provide  for
maintaining current  production of its oil and gas properties. The Company had
no significant commitments for capital expenditures at December 31, 2006.

   As of December 31, 2006, the Company had a $3,000,000 line of credit secured
by producing oil and gas properties and well equipment owned by the Company.
The line credit matured in February 2007 and the Company is in the process of
renewing this line of credit. The Company also maintains a $1,000,000 line of
credit secured by a certificate of deposit. The line of credit matures on April
27, 2007 (see note 2 of notes to financial statements for further explanation).

Reserve Estimates

	Estimates of oil and gas reserves, by necessity, are projections based
on geologic and engineering data, and there are uncertainties inherent in the
interpretation of such data as well as the projection of future rates of
production and the timing of development expenditures. Estimates of economically
recoverable oil and gas reserves and of future net cash flows depend upon a
number of variable factors and assumptions, such as future production, oil
and gas prices, operating costs, severance taxes, development costs and
workover costs, all of which may vary considerably from actual results.
Any significant variance in the assumptions could materially affect the
estimated quantity and value of the reserves.  Moreover, there can be no
assurance that our reserves will ultimately be produced or that any
undeveloped reserves will be developed.  For these reasons, estimates of
the economically recoverable quantities of oil and gas and estimates of
the future net cash flows expected therefrom may vary substantially.
Actual production, revenue and expenditures with respect to our reserves
will likely vary from estimates, and such variances may be material.
The estimated discounted future net cash flows from proved reserves are
generally based on prices and costs as of the date of the estimate, while
actual future prices and costs may be materially higher or lower.

ANALYSIS OF RESULTS OF OPERATIONS

  From 2004 to 2005 oil and gas sales revenue increased by 24%, and
from 2005 to 2006 oil and gas sales revenue increased by 8%.
In 2005, oil production volume decreased by 5% at the same time as
the average price per barrel increased by 39% to $53.47. Also, in 2005,
the gas production volume decreased by 7% at the same time as the average
price increased by 33% to $6.72 per MCF. In 2006, oil production volume
decreased by 5% at the same time as the average price per barrel increased
by 21% to $64.77. Also, in 2006, the gas production volume increased by .2%
while the average price per MCF increased by 3% to $6.94. The fluctuation
in oil and gas prices is solely attributable to changes in market prices.

   Oil and gas production expenses decreased in 2006 by 13% while production
expenses increased in 2005 by 24%. The  decreased production costs for 2006
is primarily a result of a reduction in workover activity while the increased
production expenses for 2005 were largely associated with workover activities
and an increase in overall field expenses.

  Exploration costs in 2006 were $511,008 as compared to $161,558 in 2005.
At year end 2005, the Company was participating in the drilling of three
wells.  In 2006, these wells were finished, one as an oil producer, one
as a gas producer and one as a dry hole.  The Company drilled and completed
one additional well in 2006 as an oil producer.

  Interest expense decreased by 30% in 2006 over 2005 due to lower average
outstanding balances and increased by 20%in 2005 over 2004 due to higher
average outstanding balances as well as increased interest rates.

   Depreciation, depletion and amortization varies from year to year because of
changes in reserve estimates, changes in quantities of oil and gas produced,
changes in price of oil and gas sold, as well as the  acquisition, discovery or
sale of producing properties. Depletion increased 50% in 2006 as compared to
a 14% decrease in depletion in 2005.

   Total general and administrative expenses increased $43,996 and $37,787
in 2006 and 2005, respectively.

   In 2006 and 2005, the Company recognized approximately $16,663 and $21,889,
respectively, for the impairment of value of oil and gas properties due to
less than expected production history of specific wells and for wells that
were plugged and abandoned.

   Inflation is not anticipated to have a significant impact on the Company's
operations.

CONTRACTUAL OBLIGATIONS OF COMPANY

The Companys contractual obligations as of December 31, 2006 are as follows:

Contractual Obligations:         2007   Thereafter    Total

          Debt Obligations   $ 156,979     ---      $156,979
                               =======  =========   ========



FORWARD-LOOKING STATEMENTS

This annual report contains various forward-looking statements within
the meaning of the Section 27A of the Securities Exchange Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended.  All statements, other than statements of historical facts,
included in the Form 10-KSB  that address activities, events or developments
of the Company are forward-looking statements and represent managements
expectations or beliefs concerning future events, and may be signified by
the words expect, estimate, believe, anticipate, predict or other
similar expressions.  Forward-looking statements appear throughout this
Form 10-KSB with respect to, among other things: estimates of future oil and
gas production; estimates of future oil and gas prices; estimates of oil and
gas reserves; future drilling and operations; future capital expenditures;
future net cash flows; our future financial condition or results of operations;
and our business strategy and other plans and objectives for future operations.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements.  Accordingly, such forward-looking statements
do not purport to be predictions of future events or circumstances and
may not be realized.  For these reasons, you should not place undue reliance
on forward-looking statements.  We undertake no obligation to publicly update
or revise them.



ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



                    INDEPENDENT AUDITORS' REPORT





The Board of Directors
Texas Vanguard Oil Company:


We have audited the accompanying balance sheets of Texas Vanguard Oil Company
(the Company) as of December 31, 2006 and 2005, and the related statements of
earnings, stockholders' equity and  cash flows  for the years ended December
31, 2006 and 2005. These financial statements  are  the responsibility
of the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audits.

We conducted our  audits in accordance  with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material  misstatement. The Company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting.  Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Companys internal
control over financial reporting.  Accordingly, we express no such opinion.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating  the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.

In  our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Texas Vanguard Oil Company as
of  December 31, 2006 and 2005, and the results of its operations and its cash
flows for the years then ended in conformity with U.S. generally accepted
accounting principles.


Sprouse & Anderson, L.L.P.
Austin, Texas

March 23, 2007



                        TEXAS VANGUARD OIL COMPANY

                                 Balance Sheets

                          December 31, 2006 and 2005

                                    ASSETS
                                                          2006          2005
Current assets:
    Cash (including certificates of deposit of
       $1,250,000, pledged, in 2006 and $700,000
       in 2005, respectively)                       $  3,207,606  $ 5,399,628
    Trade accounts receivable, net of allowance
       for doubtful accounts of $0 and $0 in
       2006 and 2005, respectively                       209,973      202,230
     Prepaid federal income tax                          145,000          ---
                                                       ----------   ---------
            Total current assets                       3,562,579    5,601,858
                                                       ----------   ---------
Oil and gas properties, partially pledged,
    successful efforts method of accounting:
       Proven properties                               5,639,767    4,951,154
       Unproven properties                               170,524      171,774
Office furniture and equipment, partially pledged        230,353      208,953
                                                       ---------    ---------
                                                       6,040,644    5,331,881
Less accumulated depreciation, depletion and
    amortization                                      (2,596,075)  (2,298,797)
                                                       ---------    ---------
                                                       3,444,569    3,033,084
                                                       ---------    ---------
Other assets                                               1,000        1,000
                                                       ---------    ---------
TOTAL ASSETS                                        $  7,008,148  $ 8,635,942
                                                       =========    =========

                 LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Trade accounts payable                          $    359,784  $   480,042
    Taxes payable                                         90,000      109,782
    Asset retirement obligation, current portion          76,291       49,872
    Notes payable and current installments of
       long-term debt                                    156,979      407,510
                                                       ---------    ---------
            Total current liabilities                    683,054    1,047,206
                                                       ---------    ---------
Deferred federal income tax liability                    329,329      284,310
Asset retirement obligation, less current portion        139,576      132,458
Long-term debt, excluding current installments               ---    2,757,022
                                                       ---------    ---------
            Total Liabilities                          1,151,959    4,220,996

Commitments

Stockholders' equity:
    Common stock, par value $.05; authorized
    12,500,000 shares; 1,416,587 issued and
    outstanding in 2006 and 2005, respectively            70,828       70,828
    Additional paid-in capital                         1,888,528    1,888,528
    Retained earnings                                  3,896,833    2,455,590
                                                       ---------    ---------
            Total stockholders' equity                 5,856,189    4,414,946
                                                       ---------    ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $  7,008,148  $ 8,635,942
                                                       =========    =========

See accompanying notes to financial statements.

                        TEXAS VANGUARD OIL COMPANY
                         Statements of Earnings

                Years ended December 31, 2006 and 2005

                                            2006        2005

Revenues:
    Oil and gas sales                $  6,736,232 $ 6,220,984
    Well operation fees                   129,049     130,670
    Other, net                            275,606     188,305
    Interest income                        69,284      47,417
                                        ---------   ---------
       Total revenues                   7,210,171   6,587,376
                                        ---------   ---------
Expenses:
  Production cost                       3,509,935   4,014,409
  Exploration                             511,008     161,558
  Depreciation, depletion
    and amortization                      378,432     251,520
  Interest expense                         44,994      64,531
  General and administrative              565,437     521,471
  Impairment in value of
    oil and gas property                   16,663      21,889
                                        ---------   ---------
       Total expenses                   5,026,469   5,035,378
                                        ---------   ---------
  Earnings before income tax            2,183,702   1,551,998

Income Taxes:
  Provision for federal income tax        742,459     527,679
                                         --------   ---------

Net earnings                          $ 1,441,243 $ 1,024,319
                                        =========   =========
Weighted average number of
    shares outstanding                  1,416,587   1,416,587
                                        =========   =========

Basic and diluted earnings
    per share                         $   1.02    $   .72
                                        =========   =========

See accompanying notes to financial statements.

                             TEXAS VANGUARD OIL COMPANY
                         Statements of Stockholders' Equity

                    Years ended December 31, 2006 and 2005

                                                                        Total
                               Common Stock     Additional   Retained   Stock-
                             Shares     Amount    Paid-In    (Deficit) holders
                                                  Capital    Earnings   equity


Balances at Dec. 31, 2004   1,416,587 $ 70,829  $1,888,530 $1,431,271 $3,390,630

 Repurchase and
 cancellation of common
 stock fractional shares            0       (1)         (2)      ---         (3)

   Net earnings                   ---      ---         ---  1,024,319 $1,024,319
                            ---------  -------   ---------   --------  ---------

Balances at Dec.31, 2005   1,416,587 $ 70,828  $1,888,528  $2,455,590 $4,414,946

   Net earnings                   ---      ---         ---  1,441,243  1,441,243
                            --------- --------   ---------  --------- ---------
Balances at Dec.31, 2006   1,416,587 $70,828  $1,888,528  $3,896,833 $5,856,189
                           ========= ========= ==========  ========== ==========


See accompanying notes to financial statements.

                           TEXAS VANGUARD OIL COMPANY

                            Statements of Cash Flows

                Years ended December 31, 2006 and 2005

                                               2006         2005

Cash flows from operating activities:
 Net earnings                            $ 1,441,243  $ 1,024,319
  Adjustments to reconcile net earnings
   to cash provided by operating
   activities:
    Depreciation, depletion
      and amortization                       378,432      251,520
    Loss on sale of equipment                  1,267          ---
    Impairment in value of oil and
      gas property                            16,663       21,889
  Changes in assets and liabilities:
    (Increase) decrease in receivables        (7,743)       1,160
    Increase (decrease) in payables
       and accrued expenses                 (106,504)     281,650
    (Increase) in prepaid taxes             (145,000)         ---
    Increase in deferred federal
       income tax                             45,019       33,061
                                           ---------    ---------
Net cash provided by
  operating activities                     1,623,377    1,613,599
                                           ---------    ---------
Cash flows from investing activities:
Additions to oil and gas properties         (735,351)    (897,894)
Purchases of equipment                       (72,495)      (1,080)
                                            ---------    ---------
   Net cash used in investing activities    (807,846)    (898,974)
                                            ---------    ---------
Cash flows from financing activities:
 Borrowings on notes payable                     ---    2,850,000
 Repayments of notes payable              (3,007,553)  (3,318,204)
 Repurchase of common stock                      ---           (3)
                                           ---------    ---------
   Net cash used in
     financing activities                 (3,007,553)    (468,207)
                                           ---------    ---------
   Net increase (decrease) in cash        (2,192,022)     246,418

   Cash and cash equivalents at
     beginning of year                     5,399,628    5,153,210
                                           ---------     --------
   Cash and cash equivalents at
     end of year                         $ 3,207,606  $ 5,399,628
                                          ==========   ==========
Supplemental disclosure of
  cash flow information:
   Interest paid                         $    44,994  $    64,531
                                          ==========   ==========

   Cash paid for income taxes            $   956,264  $   531,417
                                          ==========   ==========

See accompanying notes to financial statements.


                             TEXAS VANGUARD OIL COMPANY

                           Notes to Financial Statements

                          December 31, 2006 and 2005


(1) Significant Accounting Policies

Description of Business - Texas  Vanguard Oil Company  (the Company) engages in
the acquisition, exploration, development, and operation of onshore oil and gas
properties  in  the United  States,  principally  in Texas.   The  Company owns
interests in producing properties and undeveloped  oil and gas leases in Texas,
Wyoming and New Mexico.  The Company sells all of its production to traditional
industry  purchasers  who have the facilities to transport the oil and gas from
the well site.

Oil and Gas Properties - The Company follows the "successful efforts" method of
accounting  for oil and gas exploration and production operations. Accordingly,
costs incurred  in  the acquisition  and exploratory  drilling  of oil and gas
properties are initially capitalized and  either subsequently  expensed if the
properties are determined not  to have  proved  reserves, or reclassified as a
proven property if proved reserves are discovered.Costs of drilling development
wells are capitalized. Geological,  geophysical, carrying and production costs
are charged to expense as incurred.

Financial Accounting Standards Board (FASB), Statement of Financial Accounting
Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets, requires that long-lived assets be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. It establishes guidelines for determining
recoverability based on future net cash flows from the use of the asset and
for the measurement of the impairment loss. Impairment loss under SFAS No. 144
is calculated as the difference between the carrying amount of the asset and
its fair value. Any impairment loss is recorded in the current period in
which the recognition criteria are first applied and met. Under the successful
efforts method of accounting for oil and gas operations, the Company
periodically assesses its proved properties for impairments by comparing the
aggregate net book carrying amount of all proved properties with their
aggregate future net cash flows. The statement requires that the impairment
review be performed on the lowest level of asset groupings for which there
are identifiable cash flows.

The Company performs a periodic review for impairment of proved properties.
The Company determines if impairment has occurred through either adverse
changes or as a result of its periodic review for impairment. Upon
abandonment of properties, the reserves are deemed fully depleted and any
unamortized costs are recorded in the statement of income under impairment
expense. Upon the sale of oil and gas reserves in place, costs less
accumulated amortization of such property are removed from the accounts
and resulting gain or loss on sale is reflected in operations.

Impairment of unproved properties is assessed periodically and any
impairment in value is currently charged to expense. Loss is recognized
to the extent that such impairment is indicated. When an entire interest
in an unproved property is sold, gain or loss is recognized, taking into
consideration any recorded impairment.

Impairment is measured on discounted cash flows utilizing a discount rate
appropriate for risks associated with the related properties or based on
fair market values. Impairment and abandonment losses of $16,663 and $21,889
were recorded in 2006 and 2005, respectively.


Depreciation, depletion and amortization of proved oil and gas property costs,
including  related equipment and facilities, are provided using the units-of-
production method on a property by property basis.

Office Furniture and Equipment - Office furniture and equipment is stated at
cost.  Depreciation is computed using the straight-line method, based on the
following estimated useful lives:

          Office furniture and equipment         7 years
          Automotive equipment                   5 years

Accounts Receivable - The Company provides for uncollectible accounts using
the allowance method of accounting for bad debts. Under this method of
accounting, a provision for uncollectible accounts is charged to earnings.
The allowance account is increased or decreased based on past collection
history and managements evaluation of accounts receivable. All amounts
considered uncollectible are charged against the allowance and recoveries
are added to the allowance.

Federal Income taxes - The Company uses the "asset  and liability method" of
income tax accounting which bases the  amount  of current  and  future taxes
payable on the events recognized in the financial statements and on tax laws
existing at the balance  sheet date.   The effect on deferred tax assets and
liabilities  of a  change in tax rates is recognized in income in the period
that includes enactment date.

The tax deduction allowed on qualified production as provided for in the
American Jobs Creation Act of 2004 (Jobs Act) is treated as a special
deduction.  The deduction allowance is effective for tax year 2005 and has
no material impact on the current financial statements.

Cash and Cash Equivalents - The Company considers cash and cash equivalents to
consist of demand deposits and certificates of deposit.

Concentration of Credit Risk -  The  Company  sells all  of  its production
to traditional industry purchasers. Oil sales are made under a written
contract, generally not more than one year in length. The Company has recorded
revenues in excess of 10% of total revenue from two purchasers in 2006 and two
purchasers in 2005 as follows: 2006 - 50%, 25% and 2005 - 49%, 27%. The
Company does not believe the loss of these purchasers would have a materially
adverse effect on its operations as it could sell its production to other
gathering companies.

The Company maintains cash in depository institutions that are guaranteed by
the Federal Deposit Insurance Corporation (FDIC) up to $100,000. At December
31, 2006 and 2005, cash in banks exceeded FDIC limits. The Company has not
experienced any losses on deposits.

Use of Estimates - Consistent with the requirements of generally accepted
accounting principles, management of the Company has made a number of estimates
and assumptions relating to the reporting of assets and liabilities in order to
prepare these financial statements.   Actual results could differ from those
estimates.

(2) Notes Payable and Long-term Debt

The Company had notes payable and long-term debt to banks as follows at
 December 31:
                                                             2006          2005


Note payable to bank secured by oil and gas properties.
  The original amount of the note was $622,514.
  Interest accrues at .5% above the prime rate,
  with monthly payments of $25,938.08 plus accrued
  interest. The note matured December 15, 2006.      $       ---  $   250,208

Line of credit with a bank in the amount of
  $3,000,000. Interest payable monthly at prime
  rate plus .5%, secured by oil and gas properties.
  The Company has issued a letter of credit in the
  amount of $250,000 to a third party which is
  secured by the line of credit. In 2006, the
  $250,000 letter of credit is secured by a
  $250,000 certificate of deposit. The line of
  credit matured on February 15, 2007 and is
  currently being renegotiated.                               ---    2,750,000

 Line of credit with a bank in the amount of
  $1,000,000. Interest payable monthly at 6.00%,
  secured by $1,000,000 in certificates of deposit.
  The line of credit matures on April 27, 2007.           150,000          ---

Line of credit with a bank in the amount of
  $700,000. Interest payable monthly at 4.75%,
  secured by $700,000 in certificates of deposit.
  The line of credit matured on April 27, 2006.              ---       150,000

Note payable with a bank secured by a vehicle.
  The original value of the note was $28,415.
  Interest accrues at 4.6%.  The note matures
  on November 16, 2007.                                    6,979        14,324

                                                        ---------    ---------
    Total debt                                            156,979    3,164,532
Less current installments                                (156,979)    (407,510)
                                                        ---------    ---------
Long-term debt, excluding current installments       $        ---  $ 2,757,022
                                                        =========    =========


As of December 31, 2006, the Company has no long term debt.

The note payable with a $250,208 balance as of December 31, 2005 had a
restrictive covenant, among others, that required the Company to maintain
a cash flow to debt service ratio of not less than 1.25 to 1.00. The bank
approved a variance of this covenant for the second quarter of 2005. The
Company was not in violation of the aforementioned, or other, restrictive
covenants for any other quarters in 2005 or 2006. The note payable was
paid in full as of December 31, 2006, as per the terms of the note
agreement.


(3) Related Party Transactions

The Company and an entity owned by the Chairman of the Company have an agree-
ment  whereby  the latter  provides  the  Company general corporate management
services. The affiliated company received $230,400 and $228,000 as
compensation  for performance  of those services  during  the  years  ended
December 31, 2006 and 2005, respectively. Effective January 1, 2007,
the agreement was continued with terms of $19,500 per month through December
31, 2007.

The Company leases office space from a company owned by the Chairman
of the Company under a month-to-month operating lease. Rent expense
incurred under this lease was $24,600 and $24,000 for the years
ended December 31, 2006 and 2005, respectively.

Certain officers and directors of the Company own small interests
in a number of the properties that the Company has interests in as well
as other similar properties in which the Company does not have an interest.
For the years ended December 31, 2006 and 2005 these individuals
received $64,769 and $58,111, respectively.

During the years ended December 31, 2006 and 2005, a Director of the
Company received $67,200 and $66,000, respectively for engineering
consultant work.

The Company purchases materials and services from two businesses
in which the Chairman of the Company owns an interest. These purchases
represent less than 10% of the Company's total oil field purchases.

(4) Federal Income Taxes

The federal income tax expense for 2006 and 2005 does not differ from
the expected tax expense by applying the U.S. Federal corporate income tax
rate of 34% to earnings before income taxes.  The provision for income taxes
for the year ended December 31, 2006 and 2005 consists of:

                                                2006        2005

Current tax expense                         $ 697,440   $ 494,618
Deferred tax expense (benefit)                 45,019      33,061
                                            _________   _________
                                            $ 742,459   $ 527,679
                                            =========   =========


The tax effects of temporary differences that give rise to the deferred tax
assets and liabilities at December 31, 2006 and 2005 is presented below:

                                                             2006       2005

   Deferred tax liability:
     Office furniture and equipment and oil
      and gas property, due to differences in
      depreciation and abandonment                    $ (329,329)  $ (284,310)
                                                        ---------   ----------
   Total deferred tax liability                       $ (329,329)  $ (284,310)
                                                        =========   ==========


The Company has no accumulated losses for Federal income tax purposes as of
December 31, 2006 and 2005, which may be carried forward and used to
reduce taxable income in future years.

(5) Fair Value of Financial Instruments

Based on the borrowing rates currently available to the Company for bank loans
with  similar  terms and  average  maturities, the fair value of notes payable
approximates market value at December 31, 2006 and 2005.

(6) Asset Retirement Obligation

In June 2001, the FASB issued FAS 143,Accounting for Asset Retirement
Obligations. FAS 143 requires that an asset retirement obligation (ARO)
associated with the retirement of a tangible long-lived asset be recognized
as a liability in the period in which it is incurred or becomes determinable
(as defined by the standard), with an associated increase in the carrying
amount of the related long-lived asset.  The cost of the tangible asset,
including the initially recognized asset retirement cost, is depreciated
over the useful life of the asset.  The ARO is recorded at fair value, and
accretion expense will be recognized over time as the discounted liability
is accreted to its expected settlement value.  The fair value of the ARO
is measured using expected future cash outflows discounted at the Companys
credit-adjusted risk-free interest rate.  The provisions of this statement apply
to legal obligations associated with the retirement of long-lived assets that
result from the acquisition, development, and operation of a long-lived asset.


           					               2006 	  2005
      Asset retirement obligation
        Beginning of year	                 $ 182,330  $ 197,860
        Liabilities incurred during the period    15,412     27,751
        Settlements                                  ---        ---
        Accretion expense		              11,349     11,349
        Revisions in estimated cash flow           6,776    (54,630)
                                                 -------    --------
	Asset retirement obligation
	  End of year                            $ 215,867  $ 182,330
                                                 =======    =======



INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION

The Board of Directors
Texas Vanguard Oil Company:

Our report on our audit of the basic financial statements of Texas Vanguard
Oil Company for 2006 appears on page 9.  The audit was made for the purpose
of forming an opinion on those statements taken as a whole.  The supplemental
information presented in the following section of this report is presented
for purposes of additional analysis and is not a required part of the basic
financial statements.  We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.


Sprouse & Anderson, L.L.P.
March 23, 2007


                      TEXAS VANGUARD OIL COMPANY

                 SUPPLEMENTAL OIL AND GAS INFORMATION

             Years ended December 31, 2006 and 2005
                             (Unaudited)

Reserve Quantity Information  (Unaudited)

The following reserve related information is based on estimates prepared by
an independent third party petroleum engineer in 2006 and management of the
Company in 2005. Reserve estimates are inherently imprecise and are
continually subject  to  revisions  based on  production  history, results of
additional exploration and development, price of oil and gas and other factors.
All of the Companys oil and gas reserves are located in the United States.

                             2006                   2005
                        Oil        Gas         Oil         Gas
                       BBLS        MCF        BBLS         MCF

Proved developed
reserves:
Beginning of year    649,058    3,454,898    934,364     5,975,427
Revisions of
 previous
estimate             (10,042)    (321,273)  (257,672)   (2,572,908)
Extensions
 and Discoveries      23,718       64,640        ---           ---
Purchase of
 minerals in place     3,068      178,380     36,377       437,536
Sale of minerals         ---          ---        ---           ---
Production           (60,763)    (385,798)   (64,011)     (385,157)
                   ---------    ---------    --------     ---------
End of year          605,039    3,633,393    649,058     3,454,898
                   =========    =========    ========    =========
Proved developed
   reserves:
Beginning of year    649,058    3,454,898    934,364     5,975,427
End of year          605,039    3,633,393    649,058     3,454,898

Standardized Measure of Discounted Future Net Cash Flows (Unaudited)

The following is a standardized measure of discounted future net cash flows and
changes therein relating to proved  oil and gas reserves. Future net cash flows
were computed using year-end prices and costs and relate to existing proved oil
and gas reserves in which the enterprise has  mineral  interests.  The Company
cannot predict  price  fluctuations, which may  occur in the future. Future
income tax expenses were provided  after  estimated  utilization of any
available Federal income tax loss carryforwards.

                                             December 31,
                                         2006           2005

Future cash inflows                 $ 55,634,890  $  70,247,211
Future production
  and development costs              (26,221,670)   (27,585,510)
Future income tax expenses            (8,278,552)   (12,801,194)
                                     ------------   ------------
     Future net cash flows            21,134,668     29,860,507

10% annual discount for
  estimated timing of cash flows      (8,087,491)   (11,556,087)
                                     ------------   ------------
Standardized measure of
  discounted future net cash flows  $ 13,047,177  $  18,304,420
                                    ============   ============

                              TEXAS VANGUARD OIL COMPANY

                    SUPPLEMENTAL OIL AND GAS INFORMATION, CONTINUED
                                   (Unaudited)

The following are the principal sources of change in the standardized measure
of discounted future net cash flows:

                                                2006         2005
Changes:
Sale of oil and gas produced, net of
 production costs                       $ (2,715,289) $(2,045,017)
Net changes in prices and production
 costs                                    (1,146,031)   2,909,460
Purchase of minerals in place                 57,445      357,263
Extensions and discoveries                    85,184          ---
Sales                                            ---          ---
Revisions of previous quantity estimates     245,546   (1,971,036)
Accretion of discount                      1,830,442    1,354,983
Other                                     (3,614,540)   4,148,935
                                           ----------   ----------
    Net changes                           (5,257,243)   4,754,588

Beginning balance - standardized measure
 of discounted future net cash flows      18,304,420   13,549,832
                                          ----------   ----------
Ending balance - standardized measure
 of discounted future net cash flows    $ 13,047,177  $18,304,420
                                          ==========   ==========

The Company has not filed with or included in reports to any Federal authority
or agency other than the Securities and Exchange Commission any estimates of
total proved net oil and gas reserves.

Capitalized Costs Relating to Oil and Gas Producing Activities

                                            Years ended December 31,
                                               2006         2005

Unproven oil and gas properties
    (including wells in progress)        $   170,524  $   171,774

Proven oil and gas properties              5,639,767    4,951,154

Accumulated depletion and amortization    (2,490,010)  (2,173,175)
                                          ----------   ----------
   Net capitalized costs                 $ 3,320,281  $ 2,949,753
                                          ==========   ==========

Costs Incurred in Oil and Gas Property
 Acquisition, Exploration and Development Activities

                                         Years ended December 31,
                                               2006       2005

Acquisition of properties - unproven    $       ---   $  20,711
Acquisition of properties - proven          735,351     877,183
Exploration costs                           511,008     161,558
Development costs                               ---         ---

ITEM 8. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

ITEM 8A.  CONTROLS AND PROCEDURES

The Company, under the supervision and with the participation of its manage-
ment, including the principal executive officer and principal financial
officer, evaluated the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act as of the end of the period
covered by our report.  Based upon that evaluation, our principal executive
officer and principal financial officer concluded as of the Evaluation Date
that our disclosure controls and procedures were effective such that the
information to be disclosed in the reports filed or submitted under the
Act is accumulated and communicated to management, including the principal
executive and principal financial officers, to allow timely decisions
regarding required disclosures.

Internal control over financial reporting is a framework incorporating
processes designed to assure that transactions are booked properly
initially and find their way to the appropriate place on the Company
financial statements.  There were no changes in our internal control
over financial reporting that occurred during the fourth quarter of
2006 that have materially affected, or are reasonably likely to
materially affect our internal control over financial reporting.

                                    PART III

Items 9, 10, 11 and 12 constituting Part III of Form 10-KSB have been omitted
from this annual report pursuant to the provisions of Instruction G(3) to Form
10-KSB, as the Company will file a definitive proxy statement pursuant to
Regulation 14A under the Securities Exchange Act of 1934 within 120 days after
the close of its fiscal year.



ITEM 13. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(a)(1). Financial Statements.

Independent Auditors' Report, Balance Sheets at December 31, 2006 and 2005 and
the related Statements of Earnings, Stockholders' Equity, and Cash Flows for
each of the years in the two-year period ended December 31, 2006, and notes
to financial statements are included in Item 7.

(a)(2) Financial Statement Schedules

Not applicable.

(a)(3). Exhibits

Number    Description of Document

3*     Copies of Articles of Incorporation and Bylaws - Incorporated by
       reference to Exhibits 4a and 4b to Registration Statement No. 2-66693
       filed by registrant on Form S-2.

3.1*   Articles of Amendment to authorize capitalization of common stock,
       previously filed as exhibits to Form 8-K dated May 27, 1983.

3.2*   Certificate of Amendment dated February 20, 1990 of Articles of
       Incorporation and Articles of Amendment dated February 16, 1990 to the
       Articles of Incorporation. Filed as Exhibit to 1989 Form 10-K.

10.1   Management contract between Texas Vanguard Oil Company and Robert
       Watson Inc. dated January 1, 2006.

31.1   Rule 13a-14(a)/15d-14(a) Certification

32.1   18 U.S.C. Section 1350 Certification

* Incorporated by reference.

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees

The aggregate fees billed to the Company by Sprouse & Anderson, L.L.P. for
the audit of Texas Vanguard Oil Company annual financial statements
included in the Form 10-KSB and for the review of the financial statements
included in its quarterly reports on Form 10-Q for the fiscal years
ended December 31, 2006 and 2005 totaled $25,000 and $27,200, respectively.
Sprouse & Anderson, L.L.P. did not provide tax services for the fiscal
years ended December 31, 2006 and 2005.

It is the audit committees policy to pre-approve all services provided
by Sprouse & Anderson, L.L.P.  All services provided by Sprouse & Anderson,
L.L.P. during the years ended December 31, 2006 and 2005 were pre-approved
by the audit committee.


                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                       TEXAS VANGUARD OIL COMPANY



                                       By: William G. Watson
                                           William G. Watson, President
                                           March 28, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.




William G. Watson                          Robert L. Patterson
William G. Watson, President,              Robert L. Patterson, Director
Director, Chief  Executive                 March 28, 2007
Officer and Principal Financial
and Accounting Officer
March 28, 2007

Linda R. Watson                             Teresa N. Nuckols
Linda R. Watson, Director                   Teresa N. Nuckols, Secretary
and Chairman of the Board                   March 28, 2007
March 28, 2007


THIS PAGE IS NOT PART OF OUR ANNUAL REPORT ON FORM 10-KSB.


OFFICERS AND DIRECTORS                CORPORATE INFORMATION

Linda R. Watson                       CORPORATE OFFICE
Chairman of the Board                 9811 Anderson Mill Road, Suite 202
and Director                          Austin, Texas 78750

William G. Watson
President, Chief Executive            INDEPENDENT ACCOUNTANTS
Officer and Director                  Sprouse & Anderson, L.L.P.
                                      Austin, Texas
Teresa Nuckols
Secretary                             TRANSFER AGENT
                                      Coputershare Trust Company, Inc.
Robert L. Patterson                   P.O. Box 1596
Director                              Denver, Colorado 80228

                                      COMMON STOCK
                                      Quoted on OTC Bulletin Board
                                      Symbol: TVOC.OB

                                      CORPORATE GOVERNANCE
                                      The Company has adopted a Code of Ethics
                                      for its executive officers, directors and
                                      employees which is available upon request,
                                      free of charge from:
                                      Investor Relations
                                      9811 Anderson Mill Road, Suite 202
                                      Austin, Texas 78750