TEX is currently producing from 5 wells it has participated in...

TEX is currently producing from 5 wells it has participated in drilling for various interests. The first four include Thoroughbred, Snapper A1 & A2, Garwood added up to about US$2,500,000 in annualized revenues. Beyt #1 added about $1,100,000 in additional annualized revenues for a total of US$3,600,000 (based on US$100 barrel oil/condensate and $10 per thousand cubic feet of gas and assuming production is steady for the next twelve months). On these numbers we support IMHO a stockprice at around current levels of 15 cents.

Yesterday East Chalkley was announced as a potential economic oil strike, and it looks like two productive zones as opposed to one which was sought so there may be some upside to the forecast 2.4 million barrels potential. Nearby well produces 400 bpd from the same formation. Assuming TEX gets similar results they get 25% or 100 bpd of oil, annualized at $100 per barrel = US$3,650,000 AND they will have to do at least one/two step outs?? Assuming two wells revenues can be estimated at US$7,300,000 annualized. Guesstimate 3 x $7.3M = US$21.9M or 12-24 cents per share upside potential (assuming one or two wells are succesful). That puts us at 27-39 cents potential.

Coming wells at Catapult potentially could get TEX (15%) 3,000,000 cfgpd / 150 bpd. Bandito, Park North & Snapper A3 have the potential to each add 1,000,000 -4,000,000 cfgpd IF all of these wells hit at the claimed values we get US$3,832,500 with Catapult at a potential US$16,000,000 annualized revenues. So our upside is in the range IMHO US$10,000,000-60,000,000 or 8.8 - 52.5 cents (diluted for rights issue). That throws us into the ballpark of 30-90 cents in about 3 months time.

I suspect that the recent rights issue is to get some additional prospects into the program and also support a more aggressive drill program, may be getting us above one dollar. I paid up to 5.5 cents on the oppies yesterday and am looking for lots of leverage as TEX runs. good luck to all longs.