let the games begin!, page-67

The lessons to be learned from AZZ imo are
Quality of management
Real estate maxim LOCATION LOCATION LOCATION!

TXN management from the research that I have done appear to be conservative and attempt to be as transparent as possible. Have a look at their oil production predictions and they have deliberately underestimated the EFS potential.

As for location my understanding was that AZZ was well outside the industry considered condensate window on the EFS trend. When you look at where TXN is drilling and compare it to the trends described in presentations by AUT, Swift, Chesapeake, PetroHawk and EOG, the drilling is on the sweet spot trend wise. Location is everything.

We should be excited by what is happening with AUT after all the latest aquisition excelsior is half a county away from TXN. Agentm reminds us of swift energy's wells being 500 ft away from ours and are good producing wells with more than 60 day production rates not sure of spud dates but presentations have talked about them for at least 9 months. This area geologically is derisked imo.

When Aut was beginning to drill the sugarkane some of the posters had a cents/share valuation for success I think it was 4 cents, nursery or esteon you guys might remember better than I. That was for a 10% stake in production using the same rational txn could look at 40 cents impact/ well.

Higher leverage higher risk but isn't share investing all about taking intelligent risks to gain better than average returns. Own both AUT and baby aut TXN lol

cheers Icharus