TXN - Texon Petroleum

[Agentm]

ASX Release

12 April 2011

FEBRUARY PLACEMENT AND SHARE PURCHASE PLAN RAISE $39.4M


Texon Petroleum Ltd advises that the Share Purchase Plan (SPP) which was announced on 4 March and closed on 6 April has raised $23.7m. Shareholders applied for 36.5m shares at an issue price of 65 cents which was discounted by 14.7% to the average of the closing prices of Texon’s shares over the last five trading days before the announcement made on 23 February 2011. The offer was underwritten by RBS Morgans up to $10.5m.

Directors were pleased with the support received from shareholders which represented a take-up by 74% of the Company’s shareholders. In view of the opportunities available to the Company, the Directors resolved to accept all shareholder applications raising significantly more than the underwritten amount.
The Company has now raised $39.4m (before costs) including the placement of 24.2 million shares to sophisticated and institutional investors in February at 65 cents per share. These funds will allow the Company to fund its 2011 work program as outlined in the SPP offer document. The principal projects for the rest of 2011 are:

•The third and fourth Eagle Ford wells;

• Four (4) more Leighton Olmos production wells;

• Two (2) Wilcox oil wells;

• A well to test the Scarborough gas / liquids prospect;

• A well to test the Coolangatta gas / liquids prospect;

• A project to strengthen the Company’s mapping capability to substantially increase the output of prospects.

 

[condog]

In view of the opportunities available to the Company, the Directors resolved to accept all shareholder applications raising significantly more than the underwritten amount.

Got our full allocations, which is sure to be very popular. Finally some mangement that actually appreciate thier private retail shareholders. What a breath of fresh air.

 

[albaby]

condog,forgive me if this is a stupid question but the ann seems to be saying that they are accepting all the applications which roughly equates to 23000 shares,am I missing something?Thanks al.

 

[Magic Man]

In view of the opportunities available to the Company, the Directors resolved to accept all shareholder applications raising significantly more than the underwritten amount.

Got our full allocations, which is sure to be very popular. Finally some mangement that actually appreciate thier private retail shareholders. What a breath of fresh air.

TXN has dropped this morning on this news. People trying to sell there stock. It it got back to 80 cents i might have another dabble... Its gonna be a good 3 months.

 

[KurwaJegoMac]

condog,forgive me if this is a stupid question but the ann seems to be saying that they are accepting all the applications which roughly equates to 23000 shares,am I missing something?Thanks al.

That's correct. The board has accepted all applications so you will receive the 23,000 shares (Provided you took up the full offer of $15,000 - you will obviously get less shares if you didn't pay as much)

 

[albaby]

thanks KJW.I"ll get 20000 as I only had $13k to spare,by gee your quick on that edit button condog,many thanks to you and agent for sharing your knowledge and research.al

 

[Agentm]

thanks KJW.I"ll get 20000 as I only had $13k to spare,by gee your quick on that edit button condog,many thanks to you and agent for sharing your knowledge and research.al

i know a few whom are adding a lot today in anticipation..

albaby

happy to post my research.. will be out there next week in texas and intend to look over all the texon efs oil fields..

i know there will be an update on the agm from those whom attended today also

plenty of news to come

 

[boff]

Sorry for asking what feels like a dumb question, but how do I shift the shares I just got through the SPP into my CMC trading account?

 

[KurwaJegoMac]

Sorry for asking what feels like a dumb question, but how do I shift the shares I just got through the SPP into my CMC trading account?

The shares haven't been allotted yet yet so you cannot shift them into your account (as you don't own them yet). All that's happened today is that the board has approved all applicants requesting to participate in the SPP.

On Wednesday 13th April the shares are allotted to each applicant (meaning that's the day you will receive the shares). It should come automatically through to the broker under which you made your original TXN purchase. Either that you can use the statement you will receive showing your holdings - give these details to your broker and they'll make the necessary updates.

 

[philly]

I suggest all holder email
texon.info@texonpetroleum.com.au

and ask firmly that the SPP be delivered in full.

Express the need for capital going forward and it is far fairer to accept all SPP capital rather then scale us back and then do another institutional CR in 3 or 6 months.


Tell them to take full advantage of the SPP and use it to accellerate or make acquisitions, if its over subscribed, rather then scale back.

If your going to do so, do so before monday morning.

Hi Condog,
email sent.
Come on all ASF TXN holders join in we may be able to change their mind.
Good luck to all holders

In view of the opportunities available to the Company, the Directors resolved to accept all shareholder applications raising significantly more than the underwritten amount.

Got our full allocations, which is sure to be very popular. Finally some mangement that actually appreciate thier private retail shareholders. What a breath of fresh air.

All credit to you on this one Condog. I took your advice and sent an email. I had nothing to lose and was happy just to get some at 0.65. Now I got all I wanted. I am very very happy Well done management. Condog you are a LEGEND !!

 

[Agentm]

from riche whom posted this on another forum

I went to the egm, listened to John Armstrong's presentation and had quite a good conversation with John, Des Olling (corporate secretary) and Chris Brown (RBS analyst).

The primary questions were:
1) what are the intentions for the extra cash?
2) Are any more capital raisings forseeable? &
2) why haven't the results of the second EFS been released yet?

The first - was answered largely by the presentation that was announced to the ASX this morning. John went through that in detail - and while it was interesting he didn't add much that wasn't actually in the announcement. Oh .. except that Scarborough is not currently built into any of the production budgets for later this year. ie if they hit what they think they're going to = nothing but upside.

The second - John answered (and I paraphrase) - Its not forseeable for normal business but if a land owner with 1/3/5000 acres of nearby Wilcox/Olmos/EFS leases came to them then they'd have to consider it to buy the leases.

And thirdly - the one everyone wants to know .... where is the IPR from the Teal EFS? John answered that "a compressor needs to be re-attached but that the well is currently flowing" and that Dave thinks that results will be issued before the end of the week. He added that the results appear comparable to the first one with a similar setup.

I didn't get the chance to push on the comment about the compressor and ask for more details but he sounded very relaxed about it.

I wondered if they're going to line up those results with the release of the new shares which from memory hit the market on the 14th.

 

[condog]

I did not attend but i also asked about IPR for teal. I asked early last week and was told they would be expecting to publish a result this week. My guess is they will want it to clean up a bit, and with the compressor delay, it imo will eb later in the week, if not bumped to early next week.

I think theyd be keen to get the IPR out if its good prior to the 14th, to help stop any unloading by profit takers. IPR's arent able to be brought forward, but you could bet, if its available they will want it out prior to or on the 14th.

I find it commical that people are unloading today, when if we get a good IP figure in the next few days to week this thing imo would need to jump well over the dollar mark, up to 1.25 or 130's imo if its a good flow.

Brokers will almost certainly upgrade from the 1.64 RBS figure if its good as well.

 

[geelongfan]

what are your guys opinions on goldman sachs statement that essentially it's time to lock-in profits from oil stocks as the market is set to reverse? i'm assuming that this is the reason the majority of oil stocks are down quite significantly today.. anyway, i'm seeing this as a buying opportunity

http://www.reuters.com/article/2011...ldman-recommendation-co-idUSTRE73A7ZL20110411


with companies like txn i think most of their predictions have been with oil @ 100 usd/barrel (haven't got time to go through past reports right now).. so it shouldn't really affect us anyway.. coupled with the fact that the company has largely been flying under the radar i still believe it's trading at a discount as to what it should be either way..

 

[geelongfan]

ugh i meant far less than usd 100/barrel

 

[condog]

And thirdly - the one everyone wants to know .... where is the IPR from the Teal EFS? John answered that "a compressor needs to be re-attached but that the well is currently flowing" and that Dave thinks that results will be issued before the end of the week. He added that the results appear comparable to the first one with a similar setup.

This is not a smart move. Jon should not have disclosed that. Riche should not be publicising it. And it should not be being republished. Its as clear a breach of disclosure regs as i have ever seen. I just hope like hell that ASIC and ASX dont get hold of this info.

 

[Agentm]

rule of thumb with goldman sachs.. what ever they recommend.. do the opposite..

lol

if obama releases the SPR, then it will be a drop in the WTI oil price

keep in mind the cushing glut is keeping WTI a lot lower than the $125 for brent

no one knows what the trigger price is for the SPR to be released by obama..

can obama fight the oil prices down for ever? not sure.. but it appears the sooner the middle east calms down the better it will be for brent and crude for obama's sake

all imho and dyor

 

[Sdajii]

rule of thumb with goldman sachs.. what ever they recommend.. do the opposite..

lol

I read it and thought exactly the same thing. If Goldman Sachs is saying it's good to lock in profit it's probably because they're wanting to buy, and while they may not be honest and certainly not altruistic, they do know what they're talking about.

 

[estseon]

I read it and thought exactly the same thing. If Goldman Sachs is saying it's good to lock in profit it's probably because they're wanting to buy, and while they may not be honest and certainly not altruistic, they do know what they're talking about.

My first thought was that they might be selling short.

re the compressor - they need that to bump up the gas pressure to sales line pressure. Happily, much of our production ends up in barrels. Though wellhead pressure is high, volume shrinks hugely when vapour condenses into liquid. A barrel contains about 5.6 cu ft of liquid and has the energy equivalence of 6,000 cfg. You can get a feel for the volume shrinkage from that. Hence the pressure drop.

 

[condog]

My first thought was that they might be selling short.

re the compressor - they need that to bump up the gas pressure to sales line pressure. Happily, much of our production ends up in barrels. Though wellhead pressure is high, volume shrinks hugely when vapour condenses into liquid. A barrel contains about 5.6 cu ft of liquid and has the energy equivalence of 6,000 cfg. You can get a feel for the volume shrinkage from that. Hence the pressure drop.

Cheers esteon for your great explanation. Shouldnt take long to get that compressor online and flow to sales. Hopefully in next 48 hrs.

 

[Miner]

rule of thumb with goldman sachs.. what ever they recommend.. do the opposite..

lol

if obama releases the SPR, then it will be a drop in the WTI oil price

keep in mind the cushing glut is keeping WTI a lot lower than the $125 for brent

no one knows what the trigger price is for the SPR to be released by obama..

can obama fight the oil prices down for ever? not sure.. but it appears the sooner the middle east calms down the better it will be for brent and crude for obama's sake

all imho and dyor

First of all I am happy to get full $15K to be alloted in TXN
Secondly thanks to you and Condog for lovely postings
Thirdly, fully agree - Do the opposite what Goldman Sachs. They were ridiculous when GFC came. Their credibility is questionable. I will not nor never rely on GS recommendations to buy or sell