currently the expectation is $9,864 per acre on a sale of the...

currently the expectation is $9,864 per acre on a sale of the efs.. the way the market views it..

not entirely convinced its an accurate reflection of what those acres will sell for

the valuation of $9,864 allows NIL consideration any other asset of TXN..

if your potentially leasing acreages for perhaps $3K and the best you can get is $9k?? then imho its got to be a really lousy outcome for investors once you add in the millions of dollars invested for the 5 wells.. lets say $50 mill.. $73 mill minus $50 mill leaves a profit of $23 mill if all you can get is $9k per acre..


so in my view the market is heavily discounting the efs acres and adding a really substantial risk price into the share.. which i cant entirely agree with myself..

i know marathon.. and their partners, AUT... are really higher in the GOR.. they are 3.49 and texon is 2.6 times less with a 1.32 GOR ratio. So texon is really in a very oily region and not in a very wet gas region, and also has great production numbers for compared to its peers in the very oily region..

the huge prices of old for the high BTU gasses are over now, the massive spike in production of these gasses from the shales has seen their prices plummet.. so very wet regions are impacted far more by gas prices than the very oily region wells.

lets hope the management are out there earning their options.. its pretty quiet in the texon camp imho..