mooshtie,I usually find with a small cap company after a...

mooshtie,

I usually find with a small cap company after a substantial SP run there is usually a sell off due to profit taking.

Regarding TEX it appears the sell off is going to be very marginal which I believe is a major positive for the coming weeks. There would be a number of holders sitting on substantial gains who are happy to hold longer which is always a good sign.

I've researched several companies operating in the area and Concho Resources (NYSE) which is also operating on the Wolfbery target has had some tremendous results.

Below is an extract from The Concho Resources website which outlines the success they've encounted in the Permiam Basin but more importantly the Wolfberry acerage.

Concho Texas Permian Properties

The Permian Basin is one of the most prolific producing oil and gas regions in the United States. It underlies an area of Southeastern New Mexico and West Texas approximately 250 miles wide and 300 miles long. Commercial accumulations of hydrocarbons occur in multiple stratigraphic horizons, at depths ranging from approximately 1,000 feet to over 25,000 feet. This basin is characterized by long life shallow decline reserves.

Our core operating areas are located in the Permian Basin region of Southeastern New Mexico and West Texas, the largest onshore oil and gas basin in the United States. We refer to our core operating areas as the New Mexico Shelf, the Delaware Basin and the Texas Permian.

At December 31, 2010, our estimated proved reserves of 100.5 million barrels of oil equivalent (?MMBoe?) in this area accounted for 31% of our total proved reserves. During the fourth quarter 2010, our average net daily production from this area was approximately 13.7 thousand barrels of oil equivalent per day, representing 25% of our total production.

As of December 31, 2010, on the Company?s Texas Permian assets 1,800 drilling locations were identified, with proved reserves attributable to 1,094 of such locations. Of these 1,800 drilling locations, 1,742 target the Wolfberry play.

During 2010, we commenced drilling or participated in the drilling of 313 wells, of which 225 were completed as producers, one was unsuccessful and 89 were in various stages of drilling and completion at December 31, 2010.

The primary objective in the Texas Permian area is the Wolfberry in the Midland Basin. ?Wolfberry? is the term applied to the combined Spraberry and Wolfcamp target interval which is typically encountered at depths of 7,000 to 10,500 feet. The Wolfberry is comprised of a sequence of basinal, interbedded shales and carbonates.

- Concho Resources

With Target about to commence drilling in the area shortly it should certainly be a productive couple of months.