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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Douglas V. Fant who wrote (47303)	7/5/1999 11:47:00 PM
From: double-plus-good	Read Replies (1) \| Respond to of 95453

douglas, i have read through the busy sec dossier on texp and remain confused on why you think texp represents a superior investment. three ng limited partnerships have filed through the company to dispose of nearly 12 million shares, or nearly one third of the float. none of the proceeds accrue to the company. what seems apparent is that the stock price may have been driven down by the impending release on to the market of this huge amount of stock. the registration statement was very vague concerning the form that the sales would take. there was the suggestion that the shares might be offered through a patrticipating broker as a secondary of sorts, in which case the participating broker might begin favorable coverage of texp to support the sales price of the shares. i suppose this could constitute a near-term opportunity. on the face of it however, the big picture looks to me like a huge overhang of stock that should put a lid on any appreciable upside in price near-term. other than that the company strikes me as perhaps a better than average natural gas prospect. balance sheet was much improved by the recent asset sale. reserve life is 12 years and production costs are not outrageous. at the same time their realized price per cubic foot of gas is well below the henry hub price, probably due to pricing pressures in their region of production. if you have any further insight into the company i would be keen to hear it. tia brian