i remain a holder, and soon will be adding again if the stars...

i remain a holder, and soon will be adding again if the stars align correctly for me twinpeaks. my research on the efs valuations going around still dont add up to anything like whats being given to texon,, if they sell that efs puppy, i think the sp could not possibly be anything near todays prices offered.. and it goes without saying that i am a holder and firm believer the sale of the efs is a probability still. (based on texon asx announcements)

if the market actually valued texons efs assets on production alone it surely has it a tad wrong..

they are drilling a 48% WI well and a 96% WI well right now and fraccing them after their option expire..


in may. pre the peeler well coming on line, they said this about the efs

Four Eagle Ford wells -average initial production rate of over 1,400 boepd.

• Technical improvements -fracture stimulation and well completion techniques progressively refined from experience gained in the first two wells.

•Two most recent wells –are guide to Eagle Ford productivity in Texon leases. Estimated ultimate recoveries per well from our two most recent wells are 550-600 mboe/well on 80 acre spacing.


• Estimated resource potential of 59 mmboe to Texon’s WI, using 114 EFS locations (24 Joint Ventures) (80 acre spacing/well).

• Very valuable asset.


we now have 5 efs wells on production, with 2 drilling and a third one not even announced by texon yet it is in the planning and permit stages currently.


based on those numbers the 48% and 98% WI wells drilling right now will produce an EUR of $66 million based on the lower 550 mboe and a worse case $80 oil. and again ignoring the upcoming drilling 98% WI permit just posted a few weeks back in the name of texoz and not yet disclosed to the market by texon

then theres added value of the ongoing production and the remaining EUR potential left on 5 producing EFS wells still unaccounted for.. with peeler only a few months in..

114 efs locations, great location in terms of being in the oil window of the efs.. very good well results compared to peers, pipelines in place, leases potentially getting sorted with joint venture deals coming on stream.. maybe the efs looks a lot more attractive and saleable now in november compared to late february when they started this sale process?

9 months of solid work on the sale of the efs, even with all the improvements on JVP acreages and frac results, and the disclosure by terry swift a week back that he screwed up multiple well, still has convinced the market to price texon where no sale is possible nor probable..

any lift in the decimated texon sp would be heartening imho..