Ann: Investor Update , page-9

Sharejon, good of you to point out SEA's cash assets and interest in EF (and Permian and GW), which are very relevant.

I was mainly comparing the great work by Eric, Grace, and others at SEA (even before the Bakken sale) to the glacial efforts by Foss and TXN's board (who I include as mgt due to their more active participation in daily activity -- e.g. Mason).

I also think TXN needs to become both producer and explorer, not just the latter. Explorer only doesn't raise value much these days (Foss noted this in May). But TXN therefore needs to become productive and acquire its own rig to work more efficiently. TXN has the assets; they just need to be realized. Thus, SEA mgt is a role model for TXN.

As you contemplated, an acquisition of TXN by SEA would be a dilemma for holders of both stocks. I also don't think it would happen because SEA is a low price buyer (in fact, I was surprised and a bit worried -- when Grace mentioned seeking prospects in EF and even Permian). Meanwhile, TXN seems to be looking for top price, and naively underestimated the need for evidence of its asset value.

EF would get $30k/ac IMO and according to expert estimates. But I would be just as happy if TXN efficiently produced its EF asset over the next few years and used some proceeds to explore new territories.