akkpowerwould be crazy if the market would value the share on...

akkpower
would be crazy if the market would value the share on the total resource value, even in a gold share.. it cant do that as the costs to extract are not available to texon, nor is texon anything other than an explorer

oil fields are easier to value the more wells are in place, then the risk is diminished..


fair value for the resource would be anything north of $25k per acre, which is the bottom end of current transaction pricing for acres with minimal PUD.. perhaps a few wells over 10's to 100's of thousands of acres

texon has a resource in place and the entire efs is a stratigraphic play, so your not needing to prove much to a potential buyer other than what the EUR's are going to deliver. something that cliff told you yesterday

"everything is up for sale" is the philosophy of cliff, and in todays market you get a % of total resource potential when selling an oil field.

EKA is rejecting $67k per acre, and AUT is valued over $100k per acre i believe

the current oilfield has full 3ds over it, so unlike most oilfields, anyone purchasing the texon acres (now and in the future) will mostly have a 3d overlay over all of it, so they can drill exactly where they need to, never be out of zone, and almost be guaranteed maximum performance from the wells, mechanical failure in fracs are possibly the only risk in the texon mcmullen efs acreages as cliff pointed out to us all

my point is that $14k per acre currently priced into texon, (and thats allowing nil for the olmos and austin chalks and all other projects..) is basically not within the base price of $25k for acreages without any PUD acres

imho its possible to consider the upcoming sale of the efs as a no brainer if you under the impression as i am that the efs is worth far more than $14k per acre

imho $35k + is not out unreasonable

all imho and dyor