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TXN - Texon Petroleum

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Magic Man said:
I dont think thats the only reason Assassin, i think the fact the market is down 100 points and theres alot of uncertainty about a Nuclear Meltdown is the main reason the stock is down...
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Yeah agreed Magic,
unfortunately this is now likely to go below CR price and wipe out any advantage. Just rotten luck I guess.
Anyway, time to spare a thought for those in Japan and have a holiday from this.
Good luck.
 
Assasin said:
Yeah agreed Magic,
unfortunately this is now likely to go below CR price and wipe out any advantage. Just rotten luck I guess.
Anyway, time to spare a thought for those in Japan and have a holiday from this.
Good luck.
Click to expand...

We were due for a pullback after a good run for the broader market. Imo these prices are caused by short term traders and those using stop losses, to me its spells opportunity.

IMO its your typical market over reaction and imo we should see a strong bounce.

Risk aversion will be replaced by risk tolerance. In a few days those reactors will have totally cooled and the drama will be over. There will still be jitters about Japan, but nothing like the current concerns. No body likes to profit from others suffering, but we have a portfolio to manage and the reality is these have been way oversold.

Look for the bounce and a quick 20% gain i say. As people realise they jumped like lemmings and shouldnt have sold.
 
Whilst TXN trades above 65c there is no material change to the fundamentals underpinning the recent strong run IMO - intend to take my full allotment in the SPP.
My experience of the post-SPP period in other stocks has been very positive.
 
The timing looks right for me to load back up again. Looks like stateside traders seem to be taking advantage of the cash offer so it finally dropped. I'm not the least bit worried about the rebound. This company will succeed.
 
i have a question.. if i sold my TXN holdings after i got an offer for the SPP.. can i buy back in on the SPP even if i have no TXN shares now? or did i still need to have the original holding to be eligible for the SPP?

i saw a good opportunity so i had to sell off but I also want to get back in eventually haha
 
the answer is yes you can buy into the SSP even if you sell all your txn shares

the minimum requirement is to have owned the shares, after that your able to buy or sell as you wish without restriction.

"The offer is made to shareholders who were registered on the share register at 5PM (AEST) on 22 February 2011"
 

Note that the offer is only open to Australian and NZ residents if you're relying upon it.

The negative to putting your money in the offer is that you may be scaled back. You might get them cheaper but make less money on the sum that you can invest if the market for the share turns positive before 6 April.
 
Announcement out.

Fracture stimulation and testing of Texon’s second Eagle Ford horizontal well (Teal EFS #1H) commenced on Tuesday 22 March 2011 (Houston time).

The overall programme of fracture stimulation of the well and recovery of the frac fluid is expected to take about two weeks and at the end of which the well will be production tested.

The Company is well positioned to benefit from a successful test now having 6,387 acres (5,914 nett acres) in the Eagle Ford shale trend in the vicinity of this well and the Company’s first Eagle Ford well which has now been producing for 3 months.
The Company’s new 5,900 nett acre Eagle Ford acreage holding represents a 30% increase from the previous holding of 4,500 nett Eagle Ford acres.
 
hey estseon

total acreages now stand at 6387..

the new total of the newly acquired acreages is now 1463

i liked the announcement myself, the new acreage block a few miles east of the tyler ranch well has had attracted zero comment by anyone, but it impressed me as a shareholder
texon continues to expand into the near region and is picking up acreages all the time

teal ranch 1h is nicely into a frac right now which will bring fresh news shortly.
 
a few slides from a recent eog presentation

the positive news on the efs keeps on coming... imho texon may be able to price in its new efs well thats now fraccing and the many olmos sands wells about to frac..

eog see 40% return from wells in first 5 years



 

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the 2010 reserves report excludes all current wells being fracced

worth a look imho

 

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The comment on EFS is reasonably good but more could have been said about Olmos. Looking at the presentation 28 Feb 2011.....

NPV10 at 31/12/10
EFS (16 wells) $118m: total for acreage 70 wells = 70/16 x $118m = $516m
Olmos (1.665mboe) $33.8m: total about 7mmboe = 7/1.664 x $33.8m = $142m

This equates to about $3.25/share although full exploitation might require further capital dependent on the rate of drilling after the current programme.

Nothing included for Wilcox or Pearsall

Re EFS - same valuer as AUT. AUT broker CMG securities suggested potential for 10 fold increase counting reduced spacing, increased EURs per well + Austin Chalk overlying. It is not clear whether the chalk overlying the EFS is of comparable thickness for TXN's acreage.

Nevertheless, applying the same assumptions re potential drilling density and EURs per well might give 3 to 5 x $516m in due course.
 
Re: TXN - Texon Petroleum RBS lifts price target to $1.64

from riche

Extract from Chris Brown's (RBS analyst) report:

Low-risk, high-value gas exploration

TXN will hold a 100% WI in drilling two gas prospects during 2011, with unrisked upside
values above A$2.00ps (Scarborough), and A$0.25ps (Coolangatta), and will evaluate the Wilcox horizon in the L-M-R-S leases. With over A$35m in net cash and profitable
production, TXN has the capacity to fund its accelerated EFS drilling and land acquisition
program, increased Olmos exploration, its high-value gas exploration and Wilcox evaluation.

Our valuation has lifted to A1.64ps (from $1.26) based on upgraded oil prices and equates to our revised target price. This is on the basis of 215m shares on issue post placement and SPP.
 
Re: TXN - Texon Petroleum RBS lifts price target to $1.64

Agentm said:
Our valuation has lifted to A1.64ps (from $1.26) based on upgraded oil prices and equates to our revised target price. This is on the basis of 215m shares on issue post placement and SPP.
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Makes that 65c placement even more attractive.
Am I reading the report correctly, or have the new acreages been excluded from the 'possible' NRI figure? If so, adds to the attraction.
 
Share price has popped up this morning. Kicking myself I passed on buying when TXN was around 70c last week.
 
moffra

the share has so much to offer

besides the amazing EFS.. that play is a blockbuster.

the olmos sands keeps on producing amazing returns

then the wilcox has something to offer, there is a cluster of wells some 3000 foot from tyler ranch that have produced over 1 million BO... no one talks about the wilcox on the mcmullen acreages besides me, but keep it in the back of your mind imho...

there is coolangatta. a real handy wilcox play, i will post up some regional data in the next month or so, maybe some pictures from texas also when i visit in a few weeks from now..

scarborough... $2 to the share... huge upside on that play.. again. i will also post some regional data in the near term..

texon plans to get things rolling, and take on more and more in terms of plays and prospects.

this is a standout operator.. if your not into investing into a oil company as a farm in partner with no control, and if you are into oil and gas exploration with a dynamic proven oil small cap oil company,, texon should be a serious consideration in your portfolio imho...

anyone read the dec 2010 report out today.. catch a look at the P&L??

worth a look imho

good luck to all holders
 
ASX Release

30 March 2011

SECOND EAGLE FORD WELL TEST PROGRESSING ACCORDING TO PLAN

Texon advises that the frac and test work on its second Eagle Ford horizontal well (Teal EFS #1H) announced on 23 March 2011 is progressing well.

The fracture stimulation part of the project has been completed and the well will start to be flow tested this coming weekend.

The well will take a few days to recover frac fluid so that test results should be available late next week.
 
All good news coming out of TXN yesterday [reserves upgrade] and today [fraccing of 2nd EFS well & Financial report] augurs well for the SPP that closes next week. Strong feeling the SPP will be oversubscribed and that allocations will be scaled back. Happy to get any at 65 cents given positive market reaction to news today. IMHO plenty more upside left in this one. Good luck to all holders.
 
Hats off to TXN management for their timing of this CR. The reserves upgrade and financial statement being about a week before the due date of the CR was perfect timing.
 
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