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Touchstone Exploration ( TXP )

Proselenes
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Re: Touchstone Exploration ( TXP )

#427232

Postby Proselenes » July 13th, 2021, 2:52 am

Nice to see the T&T Minister for Energy Stuart Young working closely with TXP. The sooner Coho and then Cascadura are online the sooner the Wall of Cash starts.

Image

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Re: Touchstone Exploration ( TXP )

#427534

Postby Proselenes » July 14th, 2021, 12:30 am

The Cruse at Chinook-1 is flaring now. All the photos are on the official Ministry media release (PDF in the link below).

So for sure the Cruse at Chinook is currently flowing and flaring.......

https://www.energy.gov.tt/wp-content/up ... ised-1.pdf

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Re: Touchstone Exploration ( TXP )

#427631

Postby Proselenes » July 14th, 2021, 1:46 pm

Video done by the Minister during his visit to Touchstone. He posted it on his Facebook page. Link below:

https://www.facebook.com/79686624370903 ... 726902689/

He was at the Coho site, but said things "really start to flow in 12 to 16 months time"......which hopefully will be both Royston and Cascadura being online.....and real big flows of gas.......

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Re: Touchstone Exploration ( TXP )

#427780

Postby Proselenes » July 15th, 2021, 2:35 am

Some nice snippets in here :

https://trinidadexpress.com/press-relea ... 9aacd.html


...........Speaking at the site of the seismic survey, Minister Young said he spent an educational day touring and was pleased to see the first seismic being performed onshore since 2016, "These are very exciting times with a lot of prospects and a lot of hope for success, especially on the gas side. We at the Ministry of Energy will continue working with Touchstone. The Company is a critical factor in us going forward and providing gas production and showing it can be done."...........


........Paul Baay, Touchsone’s President and Chief Executive Officer, said “in the last two years the Company has successfully drilled four explorations wells to the Herrera sands in the Ortoire Block, and all were deemed discoveries. These are namely Coho-1, Cascadura-1ST1, Chinook-1 and Cascadura Deep-1. Touchstone has signed a key gas sales agreement with the National Gas Company for the purchase of all gas produced from the Ortoire Block. In the coming months, the Company is anticipating to bring online our first gas discovery – Coho-1 at approximately 10 mmscf/d. In addition, we are working closely with stakeholders to complete the Environmental Impact Assessment for the development of the Cascadura gas discoveries, which the Company anticipates initial production of approximately 100 mmscf/d of liquids rich gas and 2,200 bbls/d of condensate. Touchstone is currently completing our testing at Chinook-1 and expect such gas production to be added via pipeline to the Cascadura facility."................

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Re: Touchstone Exploration ( TXP )

#427870

Postby Proselenes » July 15th, 2021, 2:03 pm

Another one, much the same. Really looking forward to the Cascadura development plan timeline.

Paul talks below about 200 per day from Cascadura. Well yes, we know that when its "really flowing" in 12 to 16 months time, it will be at 200 per day. But when will that initial 60 per day be flowing ?

Coho - September/October - 10 mmscf/day

Cascadura - initial 60 mmscf/day ????????
Cascaudra 12 to 16 months - 200 mmscf/day


https://newsday.co.tt/2021/07/15/young- ... ouchstone/

.........Touchstone Exploration CEO Paul Baay said in the last two years the company has successfully drilled four explorations wells to the Herrera sands in the Ortoire Block, and all were deemed discoveries.

“These are namely Coho-1, Cascadura- 1 ST1, Chinook-1 and Cascadura Deep-1.

"Touchstone has signed a key gas sales agreement with the NGC for the purchase of all gas produced from Ortoire Block. In the coming months Touchstone will bring online our first gas discovery – Coho – at approx 10mmscf/d.”

He said, “We are also working closely with stakeholders to complete the environmental impact assessment for the development of the Cascadura gas discoveries which can see a potential 200mmscf/d liquids rich gas added onto national production, and we are currently completing our testing at Chinook-1 and expect such gas production to be added via pipeline back to the Cascadura facility.”.........

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Re: Touchstone Exploration ( TXP )

#428226

Postby Proselenes » July 17th, 2021, 2:07 am

Minister for Energy, Stuart Young, just tweeted this article. He is really keen and confident that Coho is coming on line quite soon.

Image

https://www.bnamericas.com/en/news/trin ... is-quarter

Trinidad set to receive gas boost this quarter

Bnamericas Published: Wednesday, July 14, 2021

Trinidad set to receive gas boost this quarter

Touchstone Exploration’s Coho asset in Trinidad and Tobago is expected to begin natural gas production as early as August.

The energy ministry provided the update following a visit by minister Stuart Young and staff to the field at the company’s Ortoire onshore block.

Production is forecas..............

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Re: Touchstone Exploration ( TXP )

#428370

Postby Proselenes » July 18th, 2021, 2:36 am

And for some weekend reading, as Royston-1 approaches, lets get to know Royston a bit better.

My comments...... the current "Primary" target of gas is the upper 7a Karamat and Herrera sands. This represents potentially a lot of gas.

BUT

The old Shell well never entered into the deeper 7bc sands, they stopped drilling before going into the 7bc. Royston-1 will endeavor to go into the 7bc and see if that holds gas or oil. Massive upside potential.

BUT THATS NOT ALL

They will, all being well with the 7bc and no high pressure gas (a good thing but it might stop drilling if pressures too high), attempt to go into the Sub-Thrust. Target depth is currently poking into the Sub Thrust to see if that has gas or oil and then a new TD may be set, if they get there, if the Sub Thrust looks promising, they will go deeper as far as the rig can handle safely.

So in summary, there is 1 Primary target and 2 potential upsides.

Primary Target - 700 feet of potential gas pay in the Upper 7a Karamat/Herrera.

Upside potential - Deeper Overthrust 7bc sands currently undrilled and untested. This is big, if the 7bc is gas or oil or wet gas, it makes Royston "super size" as the 7bc is laterally more extensive than the upper 7a. If it comes in, Royston might be a multi-TCF discovery.

Upside potential - Deeper Sub Thrust. Just what is in it ? Nobody knows. Water ? Oil ? Gas ? Wet gas ? Nothing ? Exciting if they can get that deep this time and poke into it.


The current seismic being done at Royston is nothing to do with the Royston-1 well. This new seismic is a license requirement, but also it is being done to choose the development/appraisal wells if Royston-1 is a discovery. It will also help in locating the well location for Krakken-1, the potential billion/s barrel well into the Cretaceous below Royston to be drilled in late 2022.

Royston is close to both gas and oil pipelines, and will be easy to tie production in. If Royston is a success then production expected in 12 to 16 months time - meaning year end 2022 might see 10 mmscf/day from Coho, 200 mmscf/day from Cascadura (plus liquids), 200 mmscf/day from Royston (plus any liquids) and 2000 barrels or more from the South West oilfields. EG.......a very large wall of cash piling into TXP.

Given TXP has proven, independently confirmed, flow tested "RESERVES" worth 150p a share, and you can buy in below that currently, and expose yourself to massive upside from Royston safe in the knowledge the proven reserves are there and not going anywhere.......its compelling. Whoever has placed that 9 million share short on TXP and so made the price so cheap and low....thank you for allowing me and others to buy more well below fair value of reserves.


Below is what Xavier wrote in February about Royston :

Xavier Moonan 9th Feb

ROYSTON

Touchstone Exploration is gearing up to tackle Royston-1, our 5th exploration well on the Ortoire Block, this time within the Gajram Forest

Royston-1 is planned to be drilled to 10,700 feet MD targeting at least the Overthrust Mid Miocene Karamat and Herrera turbidite sands within the WSW-ENE trending, SE verging, broad, gently folded, thrusted and subtly backthrusted CSKY anticline imaged on SBC 2D seismic data

This anticline sits buried beneath thick sealing deep water clays and successive deltaics within the heart of the Ortoire Syncline, and has remained undisturbed since the Mid Miocene

The Cretaceous Naparima Hill and Gautier source rock formations are within and have been within the wet gas window since the Pliocene

As such these geological elements suggests this prospect is ideally poised for a significant gas resource

In 1965, Shell drilled the Ortoire Lizard-4 (OL-4) well to a TD of 10382 feet, encountering approximately 700 feet of gas bearing 7a Karamat and Herrera sandstones. The well was TD'd before entering the regionally more developed and laterally extensive 7bc Herrera sandstones

The well will drill the Karamat and Herrera section previously drilled by OL-4 in a structurally favourable position and will be deepened to assess at least the Overthrusted 7bc Herreras

To minimize environmental impact, Royston-1 will spud on the OL-4 wellsite, and accessed via the resurfaced oilfield road

The Royston prospect occurs approximately 3km from active natural gas and oil pipelines which traverse the Ortoire Block

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Re: Touchstone Exploration ( TXP )

#428398

Postby spasmodicus » July 18th, 2021, 9:52 am

Proselenes wrote:
Given TXP has proven, independently confirmed, flow tested "RESERVES" worth 150p a share, and you can buy in below that currently, and expose yourself to massive upside from Royston safe in the knowledge the proven reserves are there and not going anywhere.......its compelling. Whoever has placed that 9 million share short on TXP and so made the price so cheap and low....thank you for allowing me and others to buy more well below fair value of reserves.

Small (AIM) oilies were always suceptible to ramping/shorting/pumping'n dumping, both by the market and their own directors, so it's often hard to see the wood for the trees, however the case for TXP seems compelling. Maybe time for a Gamestop style short squeeze?

S
(thinking of topping up)

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Re: Touchstone Exploration ( TXP )

#429301

Postby Proselenes » July 21st, 2021, 1:04 pm

Excellent thread (series of tweets) by Xavier on Twitter just now.

https://twitter.com/MoonXav/status/1417812155236225024

Worth a read.

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Re: Touchstone Exploration ( TXP )

#429807

Postby Proselenes » July 23rd, 2021, 2:08 am

Shell announces first gas from Barracuda........one wonders if the resolution of issues with Barracuda leading to first gas, has also at the same time seen the resolution of issues between Shell and the NGC which will soon see first gas at Coho-1

https://www.shell.com/media/news-and-me ... oject.html

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Re: Touchstone Exploration ( TXP )

#429811

Postby Proselenes » July 23rd, 2021, 3:58 am

Given the move to updating interested observers with regular social media posts for events which are known to the market and so not price sensitive (eg Royston-1 rig and spud, Coho-1 pipeline building, New rig coming from Canada progress, Seismic progress etc...) I suggest people follow the Official Touchstone Social Media accounts.

I have added them to the Info thread on Reddit :

https://www.reddit.com/r/TouchstoneTXP/ ... o_all_the/


And they are also below :

Facebook : https://www.facebook.com/TouchstoneExploration/

Twitter : https://twitter.com/TouchstoneExp

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Re: Touchstone Exploration ( TXP )

#430046

Postby Proselenes » July 24th, 2021, 2:05 am

Trailers turning up......... Thats the old OL4 well hole in the foreground, and a rig starting to arrive in the background......

Image

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Re: Touchstone Exploration ( TXP )

#430623

Postby Proselenes » July 27th, 2021, 1:39 am

Rig 60 on site at Rosyton

Image

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Re: Touchstone Exploration ( TXP )

#430624

Postby Proselenes » July 27th, 2021, 1:41 am

New Star Valley rig getting loaded to ship to Trinidad

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Proselenes
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Re: Touchstone Exploration ( TXP )

#431354

Postby Proselenes » July 30th, 2021, 7:44 am

Xavier did a presentation to the AAPG Young Professionals T&T yesterday, introducing Touchstone to them.

Quite interesting, nothing new but very interesting all the same.

https://scontent.fsub5-1.fna.fbcdn.net/ ... e=6107E045

Starts about 5 minutes in.......

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Re: Touchstone Exploration ( TXP )

#432368

Postby Proselenes » August 4th, 2021, 1:23 am

Shorts update for TXP

July 2021 figures added. A small amount of short closing over July - as seen below and also from the share price rise of late.

TXP Stock on Loan (Shorts) from Euroclear (% borrowed from CREST holdings)

Jan 2021____0.52%
Feb 2021____1.23%
Mar 2021____7.14%
Apr 2021____8.65%
May 2021____8.79%
Jun 2021____8.74%
Jul 2021____8.49% (Loaned 8.792 million down from 9.032 million shares in June)

So still nearly 9 million shares shorted on London and still need to buy back and close.

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Re: Touchstone Exploration ( TXP )

#434240

Postby Proselenes » August 12th, 2021, 1:06 am

Coho-1 they commence laying pipe around 1st of September. So online before year end.

https://twitter.com/TouchstoneExp/statu ... 6778629125


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Re: Touchstone Exploration ( TXP )

#434475

Postby Proselenes » August 13th, 2021, 7:09 am

Two major headlines. Royston is ongoing and debt will be used.

https://www.londonstockexchange.com/new ... e/15097240


Executed an amendment to our $20 million term loan facility agreement, extending the principal availability period from June 15, 2021 to December 31, 2021, thereby allowing us to access the outstanding $12.5 million available balance prior to the end of the year.

· Spudded our final Ortoire minimum exploration commitment well, Royston-1, on August 12, 2021.

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Re: Touchstone Exploration ( TXP )

#434676

Postby Proselenes » August 14th, 2021, 1:53 am

Comment from Malcy.

https://www.malcysblog.com/2021/08/oil- ... d-finally/

.......Touchstone has suffered unduly in ratings terms after an incredible start to its drilling campaign in the Ortoire Block in Trinidad. It was as if the market thought that they could go through an extensive drilling campaign without a dry hole although the total project has been an unqualified success. Whatever Royston brings you could double the share price back to the previous high and it would still be a cheap share.........

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Re: Touchstone Exploration ( TXP )

#434707

Postby Proselenes » August 14th, 2021, 10:51 am

Below is a copy of my email to Paul Baay, the CEO, sent today.

To: Paul Baay
Cc: Stacey Gundersen

Dear Paul,

I hope you are well. The world is starting on the path back to normality, its not going to be quick but its underway now and hopefully it continues.

The progress being made continues to be good and I am very happy to see the news that Royston-1 has now spudded and the loan facility has been extended to be able to draw from it until year end.

Royston-1 is a very exciting drill and fingers crossed you can get into and through the 7bc right the way down to the sub-thrust. The 7bc being never drilled into in the past will offer a lot of excitement and potential upside, and so will a poke into the sub-thrust if the drill can make it that far.

To keep you updated (although I am sure you already are), the current large "short" position being held in London continues, this being around the 9 million shares level.

This is seen on Euroclear, being the number of shares loaned from CREST. There are discussions among shareholders about whether this is a short or a hedge, suffice to say that 9 million shares have been borrowed from CREST and someone is paying a recurring fee to borrow those shares, and has sold them into the market creating the share price weakness we see.

A few shareholders have contacted me (and between them and myself this represents a few million shares of Touchstone) and asked me to write to you to express their views, which I will so do below.

This email will likely be posted on public Bulletin Boards so therefore to not distract you or burden you with having to make a reply and to avoid questions of "did he reply" - please do not reply to this email. Its not trying to teach you to suck eggs, its purely some shareholders wanting their voice heard, and asking me to do so in an email.

Their concerns are regarding this "short" position and how, whoever is behind it, may be going to try to influence the board of Touchstone, directly or indirectly via whatever influence, to accept a dilutive placing ahead with the excuse being "fast tracking 2022 exploration (and/or Royston development)".

Whilst I remain confident that Touchstone can progress to Cascadura production being on line without the need for any further dilution by issuing new shares, they have raised their concerns and so wanted these concerns aired to you, therefore I am passing this on.

The company currently has a debt facility of 20 million dollars, and there has been some talk, rightly or wrongly, that this may be extended up to 50 million US dollars, or indeed a new facility may be utilized.

Touchstone now has the 2020 year end reserves report with which to take on additional debt funding and the expectation is that a new upgraded reserves report including Cascadura-Deep-1 for the first time will be coming for 2021 year end reserves report. Pending any Rosyton-1 success this may also include Royston for the first time and on top of that, there may be more oil moved into 1P status following the 4 pending wells in the South West and any positive results from the pressure testing at Chinook-1 will add a little Cruse gas as well, not to be sniffed at, literally.

With a new improved reserves report at the end of 2021, enhanced debt funding seems the obvious non-dilutive way of advancing in 2022 until Cascadura is online and throwing off cash.

So, given the companies current proven reserves and with Cascadura production due to significantly increase the companies incoming cash flow not too long in the future, they would like to express their desire that the board of Touchstone consider the following points:

1/ Exploration be pushed back until after Cascadura is online and generating significant revenues, to H2 2022 if necessary. You cannot lose value by delaying, you can lose value by diluting and then failing with exploration spend. Therefore all focus should be on getting Cascadura online while minimizing other exploration related expenditure to avoid any unnecessary equity dilution. There is no value creation in "fast tracking" exploration. The oil or gas will remain there to be discovered, whether you drill it in March 2022 or December 2022. Its going nowhere if its there, it can wait.

2/ RBL or similar debt facility (or enhanced facility) to be put in place in Q1 2022, as and if required, to fund any development drilling and development requirements until Cascadura is online and generating those significant revenues. Can the 20 million loan facility be extended to 50 million ? With a new 2021 upgraded year end reserves report can a new 50 million facility be put in place where part of it pays back the current 20 million facility and the remainder is used to fund Royston surface facilities (if needed in the success case) and also a couple of Cascadura development wells in H1 2022 ?

3/ That the board please avoid any temptation to issue shares for cash after any Royston success, when no doubt there may be lots of people "knocking on the door" trying to offer money for new shares. Particularly someone who must get hold of 9 million shares to return them to CREST having borrowed them.

At this juncture in the companies development there is a major cashflow generative development due to be online late in H1 2022 in Cascadura, or as some people jokingly say "CashCowdura". To issue shares to fast track exploration is not creating value and would dilute value in the short term. All future exploration should wait until Cascadura is online and then be generated from cashflow. Any requirement for Royston development (eg surface facilities) again should be funded via debt.


As I said earlier, this is just their thoughts and opinions that they wanted passed on, and so I have done so.

My only personal comment would be that the current share price weakness being seen is in my view completely related to the lack of clarity on future funding given the ongoing delays and further delays to Coho and Cascadura. The short position is obviously suppressing the price and it becomes a "downwards spiral" as people will sell due to a low weak share price, which in turn creates even more weakness, creating even more selling, allowing the share price to be manipulated downwards and held low. Confidence is currently shot and that short position is making sure, at the moment, no confidence can be rebuilt. A new or enhanced credit line announced in 2022 will make everyone "breath" and be confident there is no discounted placing ahead to get cheap shares from.

On another note one thing that will not sit well with people, following Chinook, is any delay to flow testing in the event of any discovery at Royston. One hopes that testing equipment has been reserved and in the event of any success there will be an immediate move to flow testing without any delay.


Fingers crossed for Royston success ahead and stay safe and thank you for your time in reading this. Keep up the good work.

All the very best,
&&&&


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