I have had enough time to consider all the angles here. Despite my initial disappointment we didn't get a large cash offer at $35K an acre for the EFS for the 'instant reward' the reward is still in the pipeline nevertheless, we'll just have to drill it ourselves.
The merger of TXN and SEA is going to add significant value to both by synergising the capital of SEA with the assets of TXN. Another success story for the chairman of the board Dr John Armstrong.From his bio ..."Prior to becoming chairman of Global Petroleum Limited, Dr Armstrong was a General Manager at Santos and played an important role in growing Santos from a small local gas company to a company which in 2001 had a market capitalisation of some A$3.5 billion and annual oil and gas revenue of over A$1 billion a year from its South Australia, Queensland, Western Australia, Northern Territory, Victoria, Papua New Guinea and United States of America areas of operation. He retired from Santos at the end of 2001."
Lets see what SEA looks like in a couple of years!!We will own 30% of SEA after all.
Meanwhile Talon will offer exploration excitement under the management of Cliff Foss previously Senior Vice President of Exploration for Petrohawk Energy. The drilling success rate under Mr Foss has been an impressive 97% at TXN.
The market has been pretty cruel to TXN IMHO. All the drill results have been good and the failures of Swift Energy next door have impacted heavily our share price. The latest well result is just across the fence from Swift's failures on our boundary I think ( perhaps agentm can clarify?)Possibly the SP has been hamstrung by the lack of capital limiting the pace of development a situation about to change.
I see 2013 as being a turn around year for holders and look favourably on the merger with SEA.
I will be voting yes!
TXN Price at posting:
45.0¢ Sentiment: LT Buy Disclosure: Held
