richeasx announcement last yearReserves – Mid Year 20113P – 10...

riche

asx announcement last year

Reserves – Mid Year 2011
3P – 10 mmboe

Successful testing of the Company’s third and fourth Eagle Ford wells in August and October this year should contribute to a further increase to the Company’s reserves at year end 2011. Together with the two producing Eagle Ford wells, successful third and fourth wells would validate 45-50 Eagle Ford well locations out of the potential 75 ’80 acre’ Eagle Ford well locations on the Company’s Eagle Ford leases

given that the entire acres are circled by producing wells, and plenty in the gap inbetween the two larger tracts..

texon is saying that post the 2 wells just completed, then 2/3 rds of the acreages are proven

leaving a minimum 1/3 rd probable, and since they announced that the southern acreages had 3 murphy wells all come on and become producers east west and south of the 2 wells just completed. with more permits and drilling going on as a result..


probable acreages are going for 20k + up to 25K... and thats a easy ask for texons efs at this level of field development

and the proven acreages prices have always gone at a many times that base..

could be a nice deal coming up

if the upcoming reserves upgrade says what i expect it will, some speculative buying pre the asx 300 entry point on the 16th could be seen..

be interesting to see how these announcements are lined up and who takes advantage of reserves upgrades being held back from the market.. good timing could see a buying frenzy with some positive reserves upgrades..

imho its undervalued.. and i am holding and accumulating,, buts thats just my own research and investment strategy.. but i have a real hard time seeing a deal done on the efs where a buyer is calling and valuing the entire texon 7400 acreages as unproven myself..

imho could be 2/3 rds are proven at a minimum??

gotta be a change on the horizon imho