valuations are totally wrong here, page-27

Agent

The RBS analyst you are referring to is Krista Walters. I hung a copy of her latest report in the other thread (released 23 July so its only a couple of days old) ... apologies to all that have already read it but given the conversation - here it is again.


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START OF REPORT
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Texon Petroleum (TXN) Market Cap: A$114m
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Recommendation: Buy
Share price: A$0.465
Price target: A$1.04
Subject: Fifth Eagle Ford Well flows at 1,262 boepd
Analyst: Krista Walter
James Lawrence
Roger Leaning
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Key points:
Texon announced that the Fifth Eagle Ford Well flowed at a rate of 1,072 bopd and 1.137mmcfd. The result equates to a flow rate of 1,262 boepd and below we compare this result to the previous four EFS wells. With the exception of the EFS-2 well (which had fraccing issues) the other wells flowed at higher rates than EFS-5.

Well number bopd mcfgpd boepd*
1 1202 782 1332
2 1105 736 1228
3 1488 100 1605
4 1408 922 1562
5 1072 1137 1262
* based on 6mcf = 1boe

Importantly this was a lease commitment well, and effectively protects a southern portion of the company's Leighton acreage from future well commitments. The well was not drilled in the ideal orientation, in order to protect the southern boundary, and this may have impacted flow flow rates. That said, the well completion has been successful and the company expects the well to be connected to oil and gas production tanks and pipelines next week.

We think TXN looks undervalued at these prices, but understand the market is nervous due to lack of news flow surrounding the monetisation process. We think that it is important to realise current market conditions and that the acreage is valuable, and therefore patience may be required to get to a deal which recognises that value.

DISCLOSURE - RBS Morgans Corporate Limited is a Joint Selling Agent for the potential whole or partial sale of the assets of Texon Petroleum Group Limited and may receive fees in this regard.

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END OF REPORT
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As you say - very interesting that you & I attended the same AGM that she did and we both took away the message that a sale was a matter of weeks if not days away. She on the other hand called August and looks like she's going to be right.

She's either very good or those RBS office partitions may be a little thin. In either case = worth keeping up to speed with her future calls.

In any event its all good = she's bullish!