WAN735, I agree, this is the EFS the BEST liquids rich shale in the US surely.
I have just bought back in @35c, I was purchasing some 12 months or so ago at 73c,71c and took up the SPP at 65c. Sold out 9 months ago. When I was purchasing, TXN had just completed their 3rd well from memory and POO was about where it is now.
Forgetting about the possible sale of the EFS acreage, I simply do not see how the fundamentals have changed to any degree that would warrant a halving of MC since I sold out. I mean the poo is not sitting at $40 and the 4th & 5th wells had an anitial flow rate of over 1000 bopd.
Lousy communications admittedly and the Sale process looked as if it was handled by absolute rank amateurs, but at the end of the day we still have acreage in the BEST liquids rich shale in the US and the POO is over $90. We have an aggressive drill program with a debt facility to enable it. I find it highly unlikely that we will be encountering many dusters, after all, this is NOT the Niobara or some pissant slice of east Texas or Colorado we're talking about.
Oh well, happy to back on board @35c. I just suppose another 5 wells at over 1000 bopd might just do the trick to enable a sale at fair value or at least re-align the MC where it was around the 70 cps mark.
GLTAH
TXN Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
