Sundance Energy' Quarterly Status Report- http://files.shareholder.com/downloads/AMDA-WAFII/2462366723x0x658238/607eedfe-3ce4-4128-a9f7-8eb995217e17/1216521.pdf Some pretty astute 'horse trading' going on here. At the time of the sale of the South Antelope assets, the Company elected Section 1031 “like-kind exchange” treatment of the sales proceeds which, under the US tax rules, allows deferral of the gain if the proceeds are used to acquire “like-kind property” within six months of the closing date of the transaction. Immediately prior to the Texon merger, the Company utilized the remaining funds in its 1031 escrow account to acquire certain oil and gas properties from a subsidiary of Texon thereby satisfying the Section 1031 requirements and deferring the gain on the South Antelope sale. The funds paid to the Texon subsidiary will be used to develop the Eagle Ford assets subsequently acquired by Sundance in connection with the merger. A small portion of proceeds ($10.2M) was placed in a new Section 1031 escrow and is expected to be used to acquire additional acreage adjacent to the Company’s existing Eagle Ford acreage. The combination of net operating loss carryforwards of the Texon subsidiary, the ability to deduct all intangible drilling costs (“IDCs”) in the period incurred and the Section 1031 deferral is expected to offset the gain associated with the sale of the assets. futr