Ann: 31 December 2012 Quarterly Report , page-2

TXN’s net production (not including the 2 new EFS wells) averaged 400 boepd during the quarter.

That really puts into perspective the declines of the wells over time. Note that this figure includes a little bit of Olmos and a tiny bit of Wilcox production (but obviously the vast majority is from the first 5 EFS wells).

Dr Dann said it well (no pun intended), with the statement "In my view, TXN needs SEA, not the other way round."

I think some people underestimate how much value is detracted from having the 'messed up' lease obligations (or lose the lease entirely) scenario. No other offers have surfaced and the TXN directors are unanimously voting for the SEA merger for a reason. Personally I think SEA’s offer is a really good bail-out considering that it seems a lot of the leases would have become literally worthless as they expire over the course of this year. Dollar per acre values are all well and good, but if the acreage vanishes into thin air (when it expires), that concept gets thrown out the window.

Provided SEA can (as stated), drill and maintain ownership of the acquired leases, I think the sky is the limit for the merged company. On the ASX, here’s a huge gap between the King onshore US oil producer (AUT) and the small-caps. I think there’s a good opportunity for SEA to get a lot of market recognition by being a standout in that middle ground. You can’t beat quality assets, an extremely good financial position and fantastic management.

All imho, as always.

My sentiment isn't buy sell or hold, it's merge..... LOL