merger details out, page-35

A competing bid is something that can't be ruled out. The Scheme Implementation Document restricts TXN from shopping the acreage around to other parties, but a competing bid can be accepted with only a $1m break fee.

So two questions need to be answered:

1. Is there someone out there that is willing to pay more than $13,500 an acre for combined EFS and Pearsall formations?

2. Will the market apply any premium to the TXN price for the possibility of a higher bid?

My answers:

1. There should be. Pearsall formation has sold for more per acre by itself and we've all seen what EFS can go for.

2. Probably not.