Looks like the market is starting to give some value to Talon within the TXN share price. (Hotfire and RichE also stated this today.)
The SEA:TXN ratio started deviating from 2:1 a day or two ago and is now quite distinct. Today, the "gap" is 6 cents in SEA currency, 3 cents in TXN currency: SEA: 85 cents (42.5 cents in 1:2 ratio) TXN: 45.5 cents (91 cents if 2:1 ratio)
Two catalysts likely at work here: First, the demerger scheme booklet puts some numbers to the value of Talon's assets, so the market might now be adding a discounted amount of that into the sp. Hotfire and RichE have been diligently discussing this valuation on their other thread.
Second, the successful EF#6 and EF#7 wells last week added credibility not just to the Eagle Ford asset (which boosted SEA's and TXN's value), but possibly also to the competence of TXN management (which boosted TXN's value alone). NOTE: I write this second argument with hesitation due to TXN's performance issues this past year, and because production success differs from exploration success.
TXN Price at posting:
45.5¢ Sentiment: None Disclosure: Held
