merger details out, page-147

Twin,

what they've just done. A sudden increase in reserves potential.

In a way, this is what AUT did with Hilcorp except they 'gave away' 50% of their WI. We are diluting our interest in the EFS but at least SEA's cash should result in the leases being held. It's all very well ploughing on with a high WI and control over the development but that requires a considerable amount of cash and 'control' is illusory where the company is forced to drill to hold the leases by production.

Giving away 50% of the EFS WI has not prevented AUT shareholders from profiting considerably. With the wisdom of hindsight, perhaps TXN should have marketed the acreage earlier, maybe last year. But that's water under the bridge. We could still make considerable profit if SEA gets it right.