where is it all heading, page-17

guys,

This thread seems to be a fairly heated debate between people with something in common, we're all investors in TEX. I agree with many of the comments on this thread, and I share the disappointment conveyed by the faithful. I've managed to average down my investment to 8.5c over the past couple of years and though I have repeatedly been disappointed by TEX's commercial success and lack of market support, I firmly believe this stock is undervalued - and no before you ask, I wont provide reasoning for why I think this stock is undervalued Im an engineer not an analyst. Having said that, I am concerned, as I am sure all of TEX's investors are, that it won't be long before the Co. comes back to the market asking for more money, this after all the success they have achieved to date!

When I do the maths, something doesn't seem to add up. They currently have $2mm in the bank and generate $200k - $250k cash flow per quarter (minus minus $300 400k administration costs). Their forward plans include significant investment in Q2 (if you believe the schedule); sidetracking Beyt#1 (great prospect, looking forward to it) and drilling a follow up well at East Chalkley (great investment). In all likelihood, additional wells will also be drilled at Highway at some stage, although Id imagine the company may want to wait and see what happens with Merta#1 first. If they can do all this, great. If they can do all this and continue to achieve 80 - 100% success, thats impressive. If they can do all this, achieve 80 100% success, and fund it without coming back to the market, Ill be ecstatic (and in the money).

Theres no doubt TEX has had excellent exploration success, from what I can tell all the current producers are commercial successes (the jury is still out for Merta#1, although I anticipate this will turn out to be a success, with production from either the Meek, Upper Wilcox or Cook Mt) and they have considerable reserves (relative to production). Unfortunately this success has not yet translated into positive cash flow and good share prices.

This post is not meant to be positive or negative, and if you feel that I have been unfair, please let me know. I have a vested interest in the share price like everyone else so I don't believe in unsubstantiated claims, whether they are positive or negative. If you disagree with my comments, I would however like to know, are you satisfied with the current company situation (cash flow, production and reserves)? Do you believe the forward plan will deliver positive cash flow performance for the company in the near to medium term (6 - 18 months), including the cost of planned well activities? Do you think this is a fair expectation? Do you believe TEX management have successfully communicated how their plan will deliver positive cash flow for the company in the near to medium term (perhaps it's not an objective)? If you believe TEX will be cash flow positive in the near to medium term, can you provide some insight into how you have come to this conclusion? I think it will help other understand the value.

Best regards to all TEX holders, I appreciate the discussion.

Norton