Twin peaks I agree with your thinking especially about projected cash holding of talon. They probably won't have the debt facility because they wont have the assets to back it. So talon will need to have at least enough cash for operating costs and 3x drills into new prospects. Thats probaby about 35m to 40m. Then after that it will need a CR for more funding.
These guys wont want to goto the market to early given thier recent performance on the sale of the EF acerage. So they will need some early success rates to get some interest involved. I imagine they are putting thier eggs into the 3 best prospects they have because if no early success then Talon might as well be rodent bait as it will be seen as poisenous. Not the effect they probably had in mind when they chose the name.
Get three good wells early and it will look like a soaring eagle and raising more funds for driling will be no problem.
As for SEA, if they can keep drill costs down and keep up the strike rate that TXN acheived and maintain the understanding of the fraccing required then we are good to go and market will wake up and $1.50 in 12 months wouldnt be out of the question. Not sure but I dont think any employees are going across to SEA in the deal so who will have the knowledge to maintain this good strike rate, because it is more than just putting a drill bit on the right spot. Allot more detail involved even if the bit hits the right spot. Mess up the frac and it might as well be a duster. Thats the only minor concern i have and it is minor as SEA know how to drill nad get results just do they know our area they are getting be cause TXN surely do.
TXN Price at posting:
45.0¢ Sentiment: Hold Disclosure: Held
