Ann: Acquisition Scheme Booklet and proxy form , page-10

re: Ann: TXN: Acquisition Scheme Booklet and ... whynot, you captured the situation nicely.

Some here are chomping at the bit for SEA to realize the potential of the Eagle Ford (EF) property, which I can appreciate. But there are also niggling issues to consider:

SEA has the money to drill more wells quickly, but doesn't have much of a track record at drilling (and almost none in horizontals). Fact is, SEA's Bakken success was mainly as a non-operator, and its successful Bakken land sale was led by its partner (Helis). SEA's success as an operator has been uneven so far, IMO. Whynot noted the poor results of SEA's first two Mississippian wells (which SEA declined to discuss in updates until this month). Recent results are looking a tad better, but no one should say that 350 boepd for 8 verticals is great, either.

In contrast, TXN has been very effective at its drilling success, but made the mistake of focusing on the land sale rather than securing a good loan and continuing to drill in 2012. TXN mainly uses contractors for its drilling/production work, but I suspect we are seeing Foss's skills at work in the excellent EF#6 and EF#& drill results. To understand how easy it is to screw up horizontal wells, look at TXN's neighbour's results this past year!

In short, SEA will produce quicker results in EF, but let's hope they develop the skill set or use TXN's contractors to continue with TXN's success rate.

FYI, I hold both SEA and TXN shares in about equal value, and held both in varying amounts since early/mid 2012.