Euroz note has been out for a couple of weeks."we note industry...

Euroz note has been out for a couple of weeks.

"we note industry trends for this part of the Eagle Ford are lobbying hard for future reserves to consider tighter well spacing for field development as well as higher EURs reflective of improved completion techniques: This will have significant bearing on reserves to the upside."

In one of TXN's presentations, 80 acre spacing and standard EUR expectation equated to approximately 5% recovery of O&G in place. This is O&G that does not have to be squeezed out of the rock but is in fact pressured to tonnes/sq inch. Remember that TCEI was getting flares 100ft high and that was against the mud weight. So huge room for increasing recovery.

Also, the reserves counted are for the shale and there's nothing in the figures for the overlaying chalk, the horizon originally targeted by Kowalik 1.

Plenty more to come for the patient and Hilcorp's track record makes this relatively low risk.

I'd say 'buy' if I had some cash