johnharris anyone wanting to put in a counter offer will have to...

johnharris anyone wanting to put in a counter offer will have to do it soon or it's all the way with SEA. I am warming up to the arrangement given the capex SEA can expend to drill the EFS. It's taking TXN 3 months to drill and frac each well. If SEA put two rigs to work with a dedicated frac crew the value is going to crystallise fairly rapidy as these wells have a pretty good rate of return.

Looking at the projected production profile post merger of 1242 boepd thats only about 40 million a year in revenue.

So a 'vigourous drilling campaign' in the EFS will lift that production profile to the point where revenues exceed drilling costs fairly swiftly something TXN could never have done.

So we sit back and watch SEA drill the EFS and other areas while Talon goes wildcatting in East Texas. Talon should have about 40 million or so cash and 20 million debt facility to drill with and given they have first dibs on all the Wandoo Prospect Generation data the chances are some more success is eminently possible.

Pretty comfortable holding TXN at this point in time, :)