* To borrow up to $12.5 mln from $32 mln DIP facility

* Court approves all first-day motions

* Receives delisting notice from Nasdaq

* Shares down 8 percent in after-hours trading

May 22 (Reuters) - TXCO Resources Inc TXCO.O, which filed for Chapter 11 bankruptcy protection on Monday, said it received court approval to borrow up to $12.5 million under its proposed $32 million debtor-in-possession (DIP) credit facility.

Shares of the oil and gas company fell 8 percent to 35 cents in after-hours trading. They had closed at $0.38 Friday on Nasdaq.

Tumbling energy prices over the past year and a lack of credit has pushed some U.S. energy companies into Chapter 11 bankruptcy, TXCO being the latest in a string of such filings. [ID:nN18350475]

TXCO said, the bankruptcy court had also approved the company's other "first-day motions," which provide for continued payment of employee wages and other compensation, royalties and the use of its cash collateral and cash management systems.

TXCO said it also received a delisting notice from the Nasdaq Stock Market, suspending trading of the company's stock on The Nasdaq Global Select Market effective May 28.