sea takeover of txn acerage

This was my post on 5/9/12:

http://hotcopper.com.au/post_single.asp?fid=1&tid=1824318&msgid=10627347&getNext=1

If you merge TXN with SEA based on current mkt caps of both companies ($105m for TXN and $195m for SEA), you would have a $300m company with $170m ($145m and $25m for TXN) in the bank and Eagle Ford Shale that is basically proven and at starting point of probably 1,500 BOPED to kick things off. Even allow a premium of $100m for the merger and still looking good for a $400m company. Just thinking what you could do with the $171m part 1, II and III.

We now have 277m shares SEA plus 123m TXN shares (245m issued TXN shares 1 SEA for 2 TXN) is 400m shares at .82c = $328m market cap.

The new SEA has $163m in the bank, $15m in drawn down loan and $85m in loan facility at low rates.

Leaves a EV of $180m ($328 less $163m cash add $15m loan)with P3 reserves of $572m. Starting point of 1,292BOPED based on last quarter and 15 Wattenberg wells being drilled and 2 high % EFS wells coming on board. Plus Mississippian wells, Bakken and another free carried Niobrara well.

IMO and the extra funds will be used to offset the capital gains with Mississippian acerage purchase plus think Bakken & Niobrara will be sold off to pay for drilling.

The sign was there in the quarterly when the loan facility was not fully paid off.

Well done Eric. Exciting times ahead. IMO do your own research.