TXN - Texon Petroleum

[rcm617]

Looks like the announcement of drilling at the mosman rockingham project has done the trick and set this alight. A potential 42mmboe potential and at this stage 100% owned.

 

[bazollie]

I have got set into TXN for a couple of reasons. They have producing oilfields and cash in the bank, and they have a quite large lease area in the Gas and Liquids Eagleford Shale (EFS) deposit.

If you go to TXN's website, they have a Strachan Report on the company which summarises it quite well. I was lucky enough to get in at the $0.39 cent mark and at the time the 2P reserves TXN had were worth about $0.36 alone, so any success in their EFS drilling is all for free!!

TXN are about to drill their first EFS well ( starting in about 5-7 days time) , and this well location is very close to a well that was successful by others next door.

Most of you readers would be aware of ADI, EKA and AUT. These companies are in the EFS business as well.

If TXN have success with their first EFS well, expect a re-rating of this stock!

Disclaimer I hold TXN.

Regards
Bazollie

 

[Agentm]

totally agree bazza

have to say i always liked the sweet sugar of success in the EFS

happily joining you on this one and i agree on the re rating

best of luck to all..

 

[Agentm]

this is the well plan

tyler ranch EFS 1h

 

[bazollie]

this is the well plan

tyler ranch EFS 1h

G'day AGENTM, This Aurora Corporation, do you know if they are the Operator that recently completed the Swift well, that is located right next door to Texon's Sweet Acreage?
I remember reading somewhere ( can't recall where ) that TXN were keen to engage the services of this operator.

I also note that TXN's EFS has a very continous zone depth of 43m from the top end of their lease to where thet are about to drill.

Hope all goes well for this next drill,

Regards
Bazollie

 

[Agentm]

G'day AGENTM, This Aurora Corporation, do you know if they are the Operator that recently completed the Swift well, that is located right next door to Texon's Sweet Acreage?
I remember reading somewhere ( can't recall where ) that TXN were keen to engage the services of this operator.

I also note that TXN's EFS has a very continous zone depth of 43m from the top end of their lease to where thet are about to drill.

Hope all goes well for this next drill,

Regards
Bazollie

hey bazza

cant confirm anything on the drillers on these wells atm..

swift have a producing well that sits a few feet south of where tyler ranch will end.. terry swift was saying a few weeks back that they have choked the wells back big time and are extremely happy with the results and will also chase the sands play which showed up with strong indicators during the drill.
they used a 12 stage frac and got a very handy flow rate in their well that sits back to back south of the texon tyler ranch efs 1h well

things will be different in a few weeks when the news of the drilling progress gets out, pretty nice prices atm imho

 

[Agentm]

just a birds eye view of how close that heavily choked back well that swift have put on production is to the texon well.

they have put in 2 permits near by.. one was approved last week

this transcript from last month contains lots of very interesting perspectives on the play by terry swift and others..

 

[Synergy]

Highest close in over 2 years today and the run looks like it might have some legs.

Almost into blue sky territory. Looking forward to tomorrow with this one.

 

[Agentm]

Highest close in over 2 years today and the run looks like it might have some legs.

Almost into blue sky territory. Looking forward to tomorrow with this one.

from the presentation a few months back

Eagle Ford – Significance to TXN

• Successful well could double/triple TXN revenue
• Reserves increase
• Set scene for multi‐well EFS programme
• TXN EFS upside is 37 mmboe (1) (possibly 31 mmbbl oil)



blue sky is obvious.. this from strachan

Texon’s sale of a 20% interest in 1,280 acres of its Olmos oilfield at the Leighton permit for US$6.7 million values its retained 59% WI in this Olmos project at A$23 million or 12 cps. The sale works out at ~A$30,000 per acre for the Olmos terrain alone and leaves Texon’s equity in the underlying Eagle Ford Shale formation unchanged at 79%. Recently, AWE cleaned up Adelphi’s EFS permits for an effective A$26,200 per acre. Texon holds 4,504 acres of EFS, which on this metric, should be worth $118 million or 61 cents per share fully diluted for all options. StockAnalysis retains a buy recommendation for Texon, which clearly has an overall risked value for its Olmos and Eagle Ford Shale oil, plus other gas prospects, of at least $1.20 per share.



http://www.texonpetroleum.com.au/docs/investor/research2010/tplsar100721.pdf

 

[adobee]

Why do holders prefer TXN over AUT ?
From what I can see AUT has the much larger land holding ?
Is there any reason txn would be preferrable ?
cheers ..

 

[Agentm]

Why do holders prefer TXN over AUT ?
From what I can see AUT has the much larger land holding ?
Is there any reason txn would be preferrable ?
cheers ..

lets ask this..

which holders here are stating they are preferring txn over aut? can you refer to the post on this thread where someone is comparing the two?

your post has no quote from anyone?????

its real nice to see that your noticing size of land holdings adobee, as the larger the land holding the more you have to dilute to cap raise.. well spotted..

re txn being preferable??

asking for advice on this forum is pretty much frowned upon, i think if your struggling to understand what txn is about, then they have a website with a lot of information and also you can call the directors themselves and get filled in on the company that way.

but FYI, the two are on completely different rock. in 3 different counties. it cant be compared.. txn are producing from 13 wells atm..

this one is yet to achieve any value from the EFS..

i suggest looking at this presentation for further info on the TXN ops.. hope it helps

 

[bazollie]

Why do holders prefer TXN over AUT ?
From what I can see AUT has the much larger land holding ?
Is there any reason txn would be preferrable ?
cheers ..

G'day Adobee , from what I can see , TXN have a very clean ownership of their leases, with no confusing complicated take off agreements etc.

Also , they have producing oil and gas fields with an income I believe of about $800k per month. They have no debt and $24M in the bank.
They will be able to fund from existing and forward income all of their proposed exploration wells without having to rattle the tins and dilute our holdings like other EFS Companies had to over the last 6 months.

The area they will be drilling in EFS is right next door to an EFS well that Swift have producing, thereby considerable de-risking what and where and when they drill their wells.

AgentM had a link to a Swift Interview in a previous post and the information in this is excellent. Swift are helping us all by improving the way and methods of successful drilling and fraccing in the EFS area.

All IMHO and DYOR.
I was a long term holder of ADI and I see that TXN are in the right place at the right time and have sat back and watched the EFS drilling and fraccing methods and now it's their turn to have a crack!

Regards
Bazollie

 

[Agentm]

bazza

the swift well imho make a compelling case in regards to the viability of the efs in the TXN acreages, their well that terry swift discussed in detail last month has generated enough interest for them to have 2 permits put in either side of the current well.

i view the liklihood of success in this TXN EFS well at an extremely high probability of success.

the acreages have so much potential with multiple targets.

i understand enough about the EFS to see how it can generate plenty of value to a company, and in the case of TXN, i look forward to that aspect coming into play.. my read on txn is that it offers a great high risk reward return for the EFS that has yet to be realised..

good luck to all holders

 

[yma]

I have got set into TXN for a couple of reasons. They have producing oilfields and cash in the bank, and they have a quite large lease area in the Gas and Liquids Eagleford Shale (EFS) deposit.

If you go to TXN's website, they have a Strachan Report on the company which summarises it quite well. I was lucky enough to get in at the $0.39 cent mark and at the time the 2P reserves TXN had were worth about $0.36 alone, so any success in their EFS drilling is all for free!!

TXN are about to drill their first EFS well ( starting in about 5-7 days time) , and this well location is very close to a well that was successful by others next door.

Hi bazollie

just wondering how long it usually take from the start of the drilling to the result release?

 

[bazollie]

Hi bazollie

just wondering how long it usually take from the start of the drilling to the result release?

G'day Yma , I would expect that the well will be started this week sometime. In one of their announcements to the ASX they are stating that the well should take about 30 days to drill. I remember reading somewhere that the Frac Crew has been contracted and I believe will be on site around the first week of November.

The drilling crew after completion of the first well have another well for another operator and then they will return to TXN's lease to drill the 2nd Eagleford Well.

As to the any results to be released , I would expect some news before the end of October.

Fingers crossed on the result, but the area has certainly been de-risked due to Technological Advancements and also Operators getting smarter on how they approach the drilling and fraccing. There are wells getting completed in record times now and multi stage fraccing is achieving better and beter results as well.

Good luck to holders,

Regards
Bazollie

 

[Kremmen]

which holders here are stating they are preferring txn over aut? can you refer to the post on this thread where someone is comparing the two?

Investments are a choice. It stands to reason that those who buy into TXN prefer it to other stocks, otherwise they would buy those other stocks instead.

Nobody has compared the two, but they should. I think it would be great if there was a thread specifically for that kind of analysis because the whole point is, after all, to invest for the best return. Having decided that oil exploration/production is a good investment, even narrowing it down to Eagleford still leaves quite a number of choices.

 

[Agentm]

the drilling commences

txn will potentially be an eagleford producer pretty soon, and the potential value for the reserves for them is yet to be accounted for in the sp, my experience in investing in these small caps says that in all cases once a well is drilling the sp usually increases on speculation, and then post the drilling and once the wells results are disclosed a great deal of the upside value from the play starts to impact further on the sp..

looking forward to the EFS value to impact on txn myself..

good luck to all holders

 

[bazollie]

Not sure why this thread is so quiet?
Have a look at the AUT and EKA thread and the posts and huge interest! These 2 companies are in the Eagleford Shale Gas Business with drilling and success. Their respective SP's have appreciated very well over the last month or so.

A lot of these EFS acreages have now been de-risked through Technological Improvements and Best Practise Innovations that have seen wells drilled faster and achieve greater fraccing results.

TXN are almost a week into their first EFS Well and hardly a murmur from anyone about this. There is about a 3 week wait until we hear if the well has intersected the 40 odd metre gas zone that is prominent in areas right next door them. The fraccing crew should start in November so we should hear results by end of November.

TXN's back of the envelope valuation (compared to AUT based on AUT's share price, acreages held and number of shares on issue) would be up around the $1 mark. It seems that TXN doesn't have the following that other EFS companies do , so scratching my head here?

Regards
Bazollie

 

[UBIQUITOUS]

Not sure why this thread is so quiet?
Have a look at the AUT and EKA thread and the posts and huge interest! These 2 companies are in the Eagleford Shale Gas Business with drilling and success. Their respective SP's have appreciated very well over the last month or so.

A lot of these EFS acreages have now been de-risked through Technological Improvements and Best Practise Innovations that have seen wells drilled faster and achieve greater fraccing results.

TXN are almost a week into their first EFS Well and hardly a murmur from anyone about this. There is about a 3 week wait until we hear if the well has intersected the 40 odd metre gas zone that is prominent in areas right next door them. The fraccing crew should start in November so we should hear results by end of November.

TXN's back of the envelope valuation (compared to AUT based on AUT's share price, acreages held and number of shares on issue) would be up around the $1 mark. It seems that TXN doesn't have the following that other EFS companies do , so scratching my head here?

Regards
Bazollie

US onshore production is hot at the moment but it's all amount where the money is at the time ie which cab is moving.

TXN have a market cap of about $100m and are looking of 900boepd of oil and gas by the end of Q1 2011. We all know AUT have gone, but lets look at a US onshore spec/producer that is moving - SEA. They have a market cap this morning of about $90m but have just forecast 900bopd (no gas included) by Dec 2010. Then there is SSN after them.

Once stocks like this become relatively more overvalued than TXN, then the money will begin to look for a relatively undervalued play, and that will be TXN. TXN remain on my watchlist with a view to enter later on in the year once fraccing is complete

 

[Agentm]

hey bazza

i am still buying atm.. so i dont mind it being too quiet

imho the sp will rise up to a decent level in the near future, speculation on the eagleford aspect of the play, and the future prospect of the eagleford becoming part of the valuation of TXN can mean some nice days ahead

good luck to all holders