reserves report due this week 60mm boe ?, page-13

stlamc,

I have no more information than you have but I did suggest a couple of months ago that structuring the transaction to provide a tax efficient return to shareholders (which might involve ATO clearances) would inevitably make the deal more difficult to negotiate and to give effect to. Further, there is the question still (I think) of what they are selling because there has been suggestion that TXN might be seeking to retain rights over the Austin Chalk and shallower formations.

Perhaps the company will provide a bit more clarification in the next presentation.

Just one other point: BHP Billiton, which is quite heavily invested in the EFS in Texas, announced a slash in its minerals capex budget of some $50bn. Whether some of that will now be released to their O & G division remains to be seen but could ginger up prices if it is.