Touchstone Exploration ( TXP )

[Proselenes]

Shore Cap comment today. Risked NAV estimate stays at 204 pence. Both SCAP and CANA have target prices/risked NAV at just over 200p levels, which is why I would expect any takeover offer to be around those levels if it were to happen.



"......Trinidad- focused operator Touchstone has this morning announced that the Trinidad and Tobago government has approved a five-year extension for the Orto1re block exploration and production licence.

As part of the extension. Touchstone is required to drill three exploration wells to minimum depths of 6,000 true vertical feet prior to the end of the amended licence term. The three exploration wells are in addition to the five wells drilled to date on the property. Similar to the previous minimum work programme, the company will be responsible for 100% of drilling, completion and testing costs for the three additional exploration wells.

Each party to the licence [i.e. Touchstone and Heritage) remains responsible for its working interest costs associated with commercial development, including expenditures relating to facilities construction and development drilling. No acreage was surrendered pursuant to the extension, with the licence amendment agreement now required to be approved by the Trinidad attorney general's office and Ministry of LegalAffairs prior to execution.

As Touchstone discusses today, the licence extension provides the opportunity for an expanded exploration programme at Ortoire and the ability to undertake a multi-faceted drilling programme combining exploration and development wells on the resource-rich Ortrnre block. We congratulate the company on the formal approval of the Drtoire licence extension, ahead of commercial sales from Coho and Cascadura and drilling of the Royston Deep and Kraken exploration wells (targeting the Herrera subthrust and deeper Cretaceous zones, respectively).

Following Touchstone's recent reserves and operational update, and in line with its usual reporting schedule, we anticipate the release of FY21 financial results later this month and look forwa rd to fully rev1s1ting our models at that juncture.

In the meantime, our last-published Risked NAV estimate stands at 240p/share and - whilst there are obviously various moving parts within this - we remain very comfortable with this figure, given the healthy reserves upgrade confirmed on Monday and the encouraging operational update accompanying this......."

[Proselenes]

Work has recommenced at Coho, the pipeline is now over 200 meters further south and also it looks like they are flaring at the well head. So preparations are not full steam ahead to get Coho online in May if possible (weather permitting). It does mean Shell have finally signed off, and so the NGC contractors can now run the pipeline into the Shell area and tie in.



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[Proselenes]

Should say NOW full steam ahead....as opposed to not...... LOL

[Proselenes]

This is Cascadura. Once the EIA is approved then watch for the pipeine going in. Only a short 1km pipeline to tie into the NGC main line.





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[Proselenes]

When you understand that for Cascadura, everything is on the TXP license area, so once they get the EIA approved then its all systems go.

For Coho they could only run the pipeline down to the edge of the TXP Ortoire license area and then stop. And wait......and wait.......and wait.......for Shell to finally sign off.....and now its signed off they continue laying the pipe into the Shell license area.

TXP are blameless in the delay, however, they should have stated from the start that they can only proceed once Shell sign off, and until Shell sign off, there is nothing they can do.

But with Cascadura everything is on TXP license. So the 1km pipe will be laid in quick once approved.

As has been said, if they get approval for the EIA before end of April then Cascadura will be ready to go in August 2022.

The only delay with Cascadura so far is the change of plan from going from a simple CEC to an EIA.

The downside of the EIA is it takes longer to get approval. CEC is quicker but limited scope......eg one CEC per well/pipe.

The EIA once approved allows for total development, so they can drill another 12 in total over the 3 pads (A and B and C) and connect them all up. There is no further approvals required as its all covered in the EIA.

Short term pain with more paperwork for the EIA, but long term massive gain as they can develop Cascadura to 200mmscf/day with zero further procedural/approval delays.

[Proselenes]

Its very clear for me that imo, the planned drilling for this year, at this moment in time is :

Two Coora wells at the legacy area.

Royston Deep-1 - to go onto production via EWT after completion (from Intermediate/Sub thrust).

Krakken-1 - to go onto production via EWT after completion. (either from Cretaceous in the success case, or from the Intermediate/Sub thrust if Cretaceous fails).

Cascadura development drilling, commence 4 development well programme.

The intention is to end year end 2022 with :

Coho online with 10mmscf/day minimum
Cascadrua online with 90mmscf/day minimum, maybe more.
Cascadura liquids.
Legacy production circa 1800 to 2000 bopd
Royston-1 on EWT production
Royston Deep-1 on EWT production
Krakken-1 on EWT production.

2022 drilling is not going to start until Coho is online and Cascadura EIA is approved and will commence with the two Coora wells.


2023 drilling will be

More Cascadura development wells.
More Royston development wells.
Possible Krakken development wells.
Guabine-1
Bass-1
Steelhead-1

[Proselenes]

Touchstone will be doing a 1 hour presentation, with Q&A session on 31st of March at 1pm UK time (British Summer Time - UK moves into Summer Time (GMT +1 hour) on 27th March 2022)


Investor Update
31st Mar 2022 at 1:00pm BST


You can register for the website here

https://www.investormeetcompany.com/

Then select TXP as one of your companies and register for their presentation.

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[Proselenes]

Couple of Tweets by the Energy Minister and Ministry :

https://twitter.com/TTMEEI/status/1507389602763616256

https://twitter.com/StuartRYoung1/statu ... 9622247429

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[Proselenes]

Bit on Royston in GeoExpro Regional Update :

https://www.geoexpro.com/articles/2022/ ... -caribbean

...................One of the discoveries made in the region which has stayed below the radar, largely because of the bigger and higher profile discoveries made elsewhere, is the Touchstone Exploration, Royston-1 exploration well, in the Ortoire Block on the eastern side of Trinidad. The Calgary-based company has had an impressive run of successes in this block along with 20% partner, Heritage Petroleum Company. Its latest well, Royston-1, confirmed a light oil discovery in the lowermost section of the well, which is understood to represent a new zone not encountered in any of the other regional offsetting wells.

Touchstone announced that Royston-1 encountered an intermediate sheet of the Miocene Herrera Formation and produced 1,786 barrels of total fluid at an average flow rate of 705 bbls/day. Interestingly, Royston-1 was targeting a deep gas prospect that an offset well, originally drilled in the 1960s, had detected gas in, but remained untested. Long-term testing of Royston-1 is planned with results due in the coming months. Touchstone is planning two additional wells, from the existing Royston-1 surface location, to target the Royston Deep Prospect and the Cretaceous Kraken Prospect. Kraken will have been de-risked with the deeper oil discovery at Royston-1......................

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[Proselenes]

In the coming 3 years (22/23/24) the following should happen :

Coho-2 (Development) - Production via pipeline
Cascadura B1 and B2 (Development) - Production via pipeline
Cascadura C1 and C2 (Development) - Production via pipeline
Royston Deep-1 (Exploration/Appraisal and Development)- Production via EWT
Krakken-1 (Exploration/Appraisal and Development) - Production via EWT
Bass-1 (Exploration) Success case oil Production via EWT
Guabine-1 (Exploration) Success case oil Production via EWT
Chinook-2 (Exploration) Success case oil Production via EWT
12 new wells minimum on Legacy license areas
Pending Krakken results some Legacy wells may be deep exploration wells.
Royston East-1 (oil) (Exploration/Appraisal and Development) - Production via EWT
Royston NE-1 (gas) (Exploration/Appraisal)
Royston South-1 (oil)(Exploration/Appraisal and Development) - Production via EWT
Rosyton SW-1 (oil)(Exploration/Appraisal and Development) - Production via EWT
Royston SSW-1 (oil)(Exploration/Appraisal and Development) - Production via EWT
Cascadura B3 and B4 (Exploration and Development)- Production via pipeline
Cascadura C3 and C4 (Exploration and Development)- Production via pipeline


In the success case there will be further developement wells.

Krakken 2-3
Chinook 3-4-5-6-7-8
Bass 2-3
Steelhead 2-3
Guabine 2-3
Royston E-2-3
Royston N 2-3
Royston S 2-3
Royston SW 2-3
Royston SSW 2-3

This covers the period 2022 to 2024. All drilling fully funded by Legacy/Coho/Cascadura/Rosyton production.

2025 onward there will be :

Another 90 Legacy area development targets minimum
Another minimum 18 completely new exploration targets on Ortoire license area
Success case of those 18 potentially another 100+ development wells on Ortoire
Potential for Legacy area deep development and exploration targets
Other Cretacrous Leads following any Krakken success
New license drilling if any new licenses taken


Exploration and Appraisal and Development drilling for more and more reserves.
More exploration targets than probably 10 other average AIM companies combined.
More development drill targets than probably 10 other average AIM companies combined.
Will be throwing off so much cash by end 2023 that high dividends are likely.

[Proselenes]

Reads ok.

https://www.londonstockexchange.com/new ... s/15385553

Paul Baay, President and Chief Executive Officer, commented:

"Building on our operational and financial momentum generated in 2021, our near-term priority is to bring our Coho and Cascadura exploration discoveries onto production. With the extension of the operating agreements on our legacy assets and the five year extension of the exploration period of our Ortoire licence, we are able to prioritize and allocate future capital expenditures on projects that provide the best economic return. Our assets, including natural gas development at Cascadura and Coho, along with oil development at Royston and our legacy properties, complemented by internally identified exploration targets, advances Touchstone to a level of portfolio balance. Barring any significant delays, we forecast that our year-end 2021 liquidity position provides the funding required to meet our near-term focus of commencing production at Coho and Cascadura. By the end of the year, we expect to develop into a sustainable cash flow generating production-based company with strong exploration prospects."

[Proselenes]

Well worth reading the MDA document that goes with the results.

PDF file in the link below:


https://gofile.io/d/URq0wv

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[Proselenes]

https://www.marketwatch.com/story/touch ... 1648453348


Touchstone Exploration Rises After Reporting 2021 Profit, Positive Outlook -- Energy

Published: March 28, 2022 at 3:42 a.m. ET

By Jaime Llinares Taboada

Shares in Touchstone Exploration Inc. jumped 15% on Monday morning after it reported a profit for 2021 and said that it is funded for its near-term Coho and Cascadura projects onshore Trinidad and Tobago. Here's what the oil-and-gas company had to say:

On 2021 performance:

"Reported average daily crude oil sales of 1,342 bbls/d in 2021, a nominal 4% decrease relative to the 1,392 bbls/d produced in 2020 due to natural declines, reflecting strategic capital allocation on our Ortoire exploration program. Production from our three development wells drilled in the fourth quarter of 2021 came online in the first quarter of 2022."

"Generated funds flow from operaged 1,384 bbls/d in F........................

[Proselenes]

Malcys comment

https://www.malcysblog.com/2022/03/oil- ... d-finally/

.........Not much to add as often the case with results statements, but I think it is worth pointing out that in recent years Touchstone has moved from being an exploration company to what is now a genuine E&P outfit that is generating earnings, in this case of $5m US, as well as having an $18m cash balance.

This balance will be used to fund the tie-in projects and production from Coho and Cascadura, thus enabling the building of the company into a substantial energy vehicle and justifying the optimism from recent years. What has not happened is the follow through in the share price from the high in February of 2021 and also from last November since when the price has drifted further. The shares are simply not reflecting the immensely strong position that the company is developing into and should at the very minimum double from here if not much more. .........

[Proselenes]

Short interview with CEO Paul Baay.

Link below. Basic take away for me is, with the 5 year extension to the Ortoire license "exploration" period, they are now not in any rush, can take their time to focus on getting production up to 30,000 boepd asap and do exploration wells ad hoc when it suits them. All good !!!

https://www.youtube.com/watch?v=JHPAPW_cKfM

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[Proselenes]

INVESTOR PRESENTATION

CALGARY, ALBERTA (March 30, 2022) - Touchstone Exploration Inc. ("Touchstone", " or the "Company") (TSX, LSE: TXP) is pleased to announce that President and CEO, Paul Baay, COO, James Shipka, CFO, Scott Budau and the Touchstone team will provide an Investor Update presentation and Q&A via the Investor Meet Company platform on Thursday, 31 March 2022 at 1:00pm BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

To register for the event please use the following link:

https://www.investormeetcompany.com/tou ... r-investor


For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:


Mr. Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487

Mr. James Shipka, Chief Operating Officer

Mr. Scott Budau, Chief Financial Officer

[Proselenes]

Excellent I thought. Very exciting snippet from Xav saying the Royston oil matches Guyana./Suriname cretaceous oil which makes Krakken look very very exciting.

If you missed it, you will be able to watch a recording by signing up to Invester Meet Company and then watching the recording when its available in due course.

https://www.investormeetcompany.com/inv ... -update-14

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[Proselenes]

31st March 2022 Presentation Video

https://www.youtube.com/watch?v=Mhtod0Q_ktU

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[Proselenes]

So, my summary of the main points from the presentation:

Cash flow positive now from operations.
Fully funded to bring Coho and Cascadura online.
Focus is get them both on line, get the cash flowing.
No more equity fund raising so no placings.
Coho on line in May 2022 with 10mmscf/day
EIA approval of Cascadura mid May 2022.
Cascadura online around September 2022 all being well with 90mmscf/day
Once clear line of sight of Cascadura being online drilling resumes.
Drilling in 2022 will be 2 off Coora wells, then Royston-1 sidetrack.
Then in Q4 Cascadura development drilling commences after sidetrack.
Royston-1 currently producting 70bopd from the upper tiny section of Overthrust only.
Sidetrack will drill through the complete intermediate section.
Intermediate section (part of) did 550bopd before.
Sidetrack complete we may see up to 1000bopd cumulative from Royston-1.
Unsure at this time if sidetrack will poke into top of the subthrust.
Danger being going deeper may create issues, dont want to lose the intermediate.
Subthrust expected to be oil and highly prolific based on PB oilfield.
May wait for Royston Deep-1 in 2023 to go into Sub Thrust.
2023 continues with Cascadura development drilling to get up to 200mmscf/day asap.
Royston Deep-1 and Krakken-1 will be fitted into the plan as and when possible.
Coho-2 production well likely in 2023.
Focus is, get production up and up and up.
5 year extension to the Ortoire exploration license allows explo drills to be second priority now, no rush. Fit them in as and when between development wells.
Did I mention no placings ?
Legacy WD wells drilled last year are now being finished with the service rig
Production from these wells should near double after servicing/pump install.
Oil samples from Royston align with Guyana/Suriname oil, bodes well for Krakken drill.
Excess cash flow will be directed back into development and exploration drilling.
If still excess then certainly looking at dividends.
Changing company from exploration with a little production to
Production, loads of cashflow with large exploration upside.
Looking at new licenses in the coming bid round, they know the ones with Cretaceous leads in them, for follow on exploration if Krakken has oil.
Downhole issues experienced in 20/21 have been looked at and investigated and actions taken to improve performance in future.

My own thoughts on this :

2022 likely to see Coora wells start in H2, then Royston-1 sidetrack. Then Cascadura B1 and B2 development wells in Q4.

2023 starts with Cascadura C1 and C2 development wells, then possibly Rosyton Deep-1 and Krakken-1 and then Coho-2.

10.5 million current share short will have to be closed buying from the market, no placings.

May should have lots of news (Coho and EIA) and then a short run to Casca being online. So we should see now a positive share price uptrend into Cascadura production online and of course, sometime that big short must close.

https://www.youtube.com/watch?v=Mhtod0Q_ktU

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[Proselenes]

There is a first....and actual Director Buy from the market at 85.7p (1.41 CAD)

Touchstone was informed that on April 1, 2022, Ms. Beverley Smith, Non-executive Director, purchased 11,662 common shares.