merger details out, page-113

Aldous,

Some of your numbers are slightly off
Texon currently has 245m shares (there are also 17.2m options outstanding of which only 300k are still in the money Pg10 of the September quarterly lists all of them for those interested).

John made the comment in the briefing that they may seek more options for the directors for Talon as later incentives but that shouldn't affect the starting point (If/when that arises it will be an amusing meeting in any event)

However then Dave Mason (aka Wandoo) gets 11.2m shares in Talon (oh... plus $1.2m cash) for the working interest he had over the acerages (I think this was about 2%).... I know he identified the original TXN EFS targets ... but seriously...

Means that the starting point of talon will probably be 256.5m.

As for the cash at bank it will effectively be the $16.8m as at 30 Sept less admin costs till the merger is done (about $0.8m / qtr for 1.5 qtrs = $1.2m) less Olmos refrac costs less merger costs (RBS has to be a big one $2m? ...then minter ellison solicitors?) plus Olmos sales less further leasing costs.

SEA will effectively repay new EFS drill costs less EFS revenues
eg 3 drills = say $27m (looks to me as though TXN will have to draw down on the debt in the interim .. don't start me...)

So I'd be surprised if Talon comes out of this with more that $10m - depends what leasing they're doing. No wonder they're targeting verticals.

so my guestimate of cash backing for Talon is just under 4c/share

But then it also has the Mosman/Rockingham Olmos + Roundhouse + Prospect Generation Agreement with Wandoo/Dave Mason + new leases???. From memory in one of the presentation they're chasing something like 20,000 ac out in east texas.

In any event the market is saying all this is worth $0 so I can understand the reasons for wanting to split it out and force the market to assign a value to it

As the demerger of Talon is NOT contingent on the TXN merger with SEA I guess we'll find out reasonably quickly what price it will be labled with. To my knowledge the date hasn't been relased yet. I imagine another EGM will be required.