txn & sea in pre open, page-26

Was hoping we'd get some more info today .... but I should know by now...

I assume we're going to get one of two scenarios with the difference depending on the the US Internal Revenue Code section 1031

(A 1031 exchange, otherwise known as a tax deferred exchange is a simple strategy and method for selling one property, that's qualified, and then proceeding with an acquisition of another property (also qualified) within a specific time frame. )

SEA have said they want to apply this provision to their proceeds from a recent $175m sale so they dont have to send the IRS 35% of the gain.

Personally I don't think that 1031 can be applied to drilling programs (ie it can't be used to pay for the actual drilling and fraccing of wells) - if it can't then they have to use the remaining $105m (they paid back some debt and I think they'll have to pay tax on that component)to buy land and TXN would get a cash + script deal like I outlined earlier today.

If I'm wrong and they can, then TXN may get a pure script for script deal and the cash will be used to drill the three wells TXN has currently slated and future drilling.

So I still reckon $0.40 cash per Texon share + 1SEA:xTXN shares + 1:1 Texon2 shares.

Obviously everyone is interested to see what they'd get so working backwards:

Land Value/Acre Acres T/a Value
$15,000 7,196 $108m
$20,000 7,196 $144m
$25,000 7,196 $180m
$28,000 7,196 $201m

When TXN originally put the EFS up for sale based on surrounding transactions I was guestimating $24-$28k/acre but its been a loooooooong sales process. So ..... $21k? Call it $150m? A premium of $50m = 62.5m SEA shares @ $0.80.

Current issued TXN shares = 245m

My guestimate = 1SEA Share for each 4 TXN shares.

Summarising, my guess is that for each 1,000 TXN shares you'll get:
$400 cash +
$200 SEA shares (250 shares @ $0.80)+
$100 TXN2 shares(1,000 shares @ $0.10)

or to boil it right down .... the equivalent of $0.70 share