get this..texas land sale values txn at $3.51

EXTRA EXTRA READ ALL ABOUT IT...

http://www.1derrick.com/goodrich-petroleum-sells-texas-asset-for-95-million/2119/

This sale values the oil in place at $14.61 per BOE in reserves.

It's there in black and white.

I was thinking to myself but wait doesn't TXN have nearly 60 mm BOE in reserves?

In the April 18th presentation under the heading

PRODUCTION AND LARGE RESOURCE POTENTIAL THE COMPANY STATES

"Four Eagle Ford wells - average initial production rate of over 1,400 boepd.
• Technical improvements - fracture stimulation and well completion techniques progressively refined.
• Fracture stimulation design of Texon’s two most recent wells benefitted from the experience gained
on the first two wells.
• Two most recent wells – are guide to Eagle Ford productivity in Texon leases.
• Future wells could produce 550,000-600,000 barrels of oil equivalent (80 acres/well).
• Under a full development scenario, there is potential for 114 Eagle Ford well locations (24 joint
venture wells at various working interests).
• Resource potential to Texon’s working interest of 59 million boe" !!!!!!!

Well well well!
Admittedly the key word here is potential however in the quarterly of 31st July 2012 the company states
"A Reserves Report is being prepared that will include the results of the Company’s fifth Eagle Ford well,
Peeler #1H, and the Wheeler #1 Olmos well. The report should be available by 31 August 2012."

So bring out the calculator.

59,000,000 x 14.61 = 861,990,000 divided by 245,039,848 shares on issue gives us a valuation of $3.51

Have I missed something here or has the market been underestimating the value of this resource by a considerable margin?