Touchstone Exploration ( TXP )

[Proselenes]

https://www.youtube.com/watch?v=vRRHqCZMok8

Energy Conversations: Touchstone Explorations

13 Mar 2023

Join us for an insightful conversation with Xavier Moonan, Exploration Manager at Touchstone Exploration (Trinidad) Limited, as we dive into the exciting developments and progress made by Touchstone in 2022.......

[Proselenes]

Paul Baay gives an update on the Cascadura site progress.

https://www.facebook.com/TouchstoneExpl ... 585709490/

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[Proselenes]

Cascadura A (left hand side) and Cascadura C (right hand side) progress so far

[Proselenes]

Surprised at the negative response.......todays news in only zone 1 and was only potential upside.

Basically there are 5 zones to test.

1st test : Lower Sub Thrust (this is new discovery - never tested before)

2nd test : Middle Sub Thrust (this is new discovery - never tested before)

3rd test : Lower Herrera (Intermediate Sheet) - This is redrilled for new tested - flowed oil already.

4th test : Lower Overthrust sheet - This is redrilled. Oil proven. Completion hoping to isolate water zones to get high oil cut.

5th test : Upper Overthrust sheet - This is redrilled. Oil proven. Completion hoping to isolate water zones to get high oil cut.


So the 1st and 2nd test results are pure bonus.

The real meat on the bones are tests 3 and 4 and 5

They could yield up to 1500bopd.........expectation is set at 500bopd. This is the real Royston testing news.....and its coming in June/July based on timings.

Should all roll into one now.......Casca complete and coming on line as well as Royston test 3 and then test 4 and then test 5.

Plenty of upside not far away imo.

[Proselenes]

https://seekingalpha.com/instablog/4127 ... t-95067304

"I had a recent catch up with management and a few interesting points.
Cascadura start up remains clearly on schedule for end of June2023, NGC are now further incentivised after BP suffered a recent gas production loss of one well offshore, hence the immediate need for gas on the island is acute. NGC are working extra shifts if needed and flying in parts if needed. For TXP part they remain well on schedule and have good visibility on meeting the targets currently. Management are acutely aware of last 2 years missing timelines and I gave them every opportunity to be cautious on delivery but contrary to this they remain resolutely confident in current timelines. First gas transforms the business from a cashflow point of view and moves future drilling to self funded, it should be a material risk reduction point for the shares in lowering cost of capital/rising share price. A move for management becoming in charge of their own drilling destiny has the potential to transform the investment case over the next 18months.
Royston sidetrack well testing. It should be emphasised the first test was a ‘long shot’ but management wanted to see if there was oil present, porosity was only around 6 and no-one internally/drill team/Schlumberger expected anything much. However the next test remains in the sub thrust and has more like 12ish on porosity with a plan to perforate 2 intervals of 30ft each within what they think is much better prospectivity. Any success here in the sub thrust would add reserves and provide a good target for future drilling. The ‘main event’ is clearly the test afterwards which is the intermediate test, previously 38ft was perforated and flowed 500+BOPD. Here there is circa 20ft above and 30ft below last time test for better sand thickness and another section of 100ft below that also can be perforated. Hence we have a lot more sand thickness this time around. The hope would be that both the subthrust and intermediate tests produce some oil flow and maybe intermediate test beats management guidance of circa 500BoPD. If both tests flow the plan/hope would be to put them both on long term test comingled in a combined rate. They would then not plan to test any of the higher zones after the intermediate in this well. However if no flow rates are established higher test zones are in reserve for testing but this would be a plan B type scenario. Key point here really is that there is still everything to play for with upcoming two Royston tests. Depending on pressure they could also opt to put in a pump to help lift the oil given the weight of liquids within the pipe (10,000ft 7inch and 9 3/8inch higher up) above perforation points.

Timing/delay. Once the drilling of Royston sidetrack was complete they negotiated a decent day rate for the star valley rig for a few days to perforate the deepest section to start testing. The crew were then sent home/off island etc as no longer needed and expensive. Actual testing took longer than expected and 2 lots of swabbing plus waiting for the 10,000ft column to refill with liquid and hence the long delay, I’m still a little unsure why it took so long. From the finish of first test it’s not worth the expense of reassembling the star valley crew to use the rig again for higher up perforation and testing. Instead management chose the much cheaper option of once the rig is moved they can use a service rig but this means a delay until new Cascadura pad is finished and the star valley rig can be moved, hence the frustrating elongation of testing timelines.
The star valley rig contract runs from September to September and has a minimum number of days usage per year (also explains why willing to use it for first part of testing), hence they would like to get it drilling ASAP at Cascadura new pad site but equally they would like the certainty of cashflow from Cascadura start up, hence there is a sensible juggling act going on here to maintain a sensible prudent cash buffer within the business. There is absolutely no need for more equity. If all goes well the rig would certainly drill 2 and probably 3 wells in succession at Cascadura and long lead items for production potentially ordered after the first well drilled, taking up to 6months to arrive etc. This would hope for significantly increased Cascadura production during 2024, possibly late summer. Note the 2-3 wells would most likely add to reserves and also move reserves up from 3P to 2P and 1P in a value enhancing manner.

They await license awards. A second well at COHO looks an attractive plan but nothing scheduled in."

[Proselenes]

TXP start pre-commissioning and commissioning of Cascadura facilities from 15th June 23. Not long now to the cash cow starting to flow a little


https://twitter.com/Proselenes/status/1 ... 9080160266

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[Proselenes]

Touchstone presenting on a webinar on 5th July. Free registration. Link below.


https://www.sharesmagazine.co.uk/events ... binar-0507

Shares Investor Webinar

Wednesday 5 July 2023

CleanTech Lithium, Impax Asset Management, India Capital Growth Fund, Touchstone Exploration

[Proselenes]

https://seekingalpha.com/instablog/4127 ... t-95435596

ActiveEurope 09 Jun. 2023, 4:20 AM

Analyst Comments (82)
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I had a quick catch up with management this week. Firstly, Cascadura start up remains on schedule, expecting to start equipment testing circa June 16th and 10 days to 2 weeks to complete that. NGC pipeline is also on schedule and if anything might be ready just ahead of TXP equipment by a few days. All sign off/checking work has been running concurrently with appropriate staff on site to try and minimize days at the project end once all work is completed before final authority sign off. Secondly, Royston testing to st..........................

[Proselenes]

June 2023 presentation link below.

They look more and more confident on Krakken.........

https://www.touchstoneexploration.com/w ... e-2023.pdf

Mid term plan is clear.

Cascadura 2 development drill (H2 23)

Cascadura 3 development drill (H2 23)

Royston Development and Exploration drills. (H2 23/H1 24

Krakken and Steelhead and Gaubine Exploration wells. (2024)

That will be H2 23 and most of 2024 activity of the drilling rig.


The excitement is all about to kick off again........

[Proselenes]

https://www.share-talk.com/malcys-blog- ... ne-energy/


........These are exciting times for Touchstone as the massive development that is Cascadura is now just around the corner, less than a fortnight until first gas from what will be a total game-changer for the company and its shareholders.

The company is in the Bucket List for a good reason and I still believe that the huge upside potential from Cascadura is no way represented by the current share price, my 200p TP still stands..........

[Proselenes]

Dont forget to register for the Webinar on 5th of July - TXP presenting.

https://www.sharesmagazine.co.uk/events ... binar-0507

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[Proselenes]

New July 2023 Presentation :

https://www.touchstoneexploration.com/w ... -Final.pdf

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[Proselenes]

Basically imo we should be near 200p a share be end of 2024......... :

2023

Drill 2 Casca-C wells
Complete Royston intermediate testing and hopefully put it on "production testing" at 400 bopd+ rates (Production testing can go on forever, no need to apply for development permit)
Possibly drill a new Rosyton well to add to production - call it appraisal.


2024

Drill Steelhead
Get Casc-C online by mid year.
Drill more Royston and Cascadura development/apprails wells.
Possibly look at Krakken drilling for Q4 2024


By end of 2024 they will be throwing off loads of cash, and have an inventory of well over 30 leads now to drill and explore.....plus the new license areas.

200p by late 2024 could easily be 400p a share by end 2025 - for an investor this is, now finally, a dream stock - wall of cash commencing this month and so much upside to explore for, and development wells to throw off more cash. 2025 should start to see dividends, hopefully maiden dividend in Q1 2025.

[Proselenes]

https://www.malcysblog.com/2023/07/oil- ... d-finally/

Touchstone Exploration

It is going to be a crucial week in Touchstone’s history and last night CEO Paul Baay was appearing in the Shares Investor Webinar to point out just how important will be. The strong production imminently starting from Cascadura will give the company ‘5 year visibility’ and more and make it a full cycle E&P company.

With it the company can start to convert reserves into production using the significant technology advances available, the support from the Energy Minister will see production get into top gear very soon and be producing over 9,000 boe/d and making it more of a natural gas company.

So, over the next few days TXP shareholders can expect the...........

[Proselenes]

7th July Presentation by Paul Baay.

https://www.youtube.com/watch?v=DvByWRR0S_8

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[Proselenes]

A reminder of the comment on June 9th over at Seeking Alpha.

The next Royston test (Intermediate) they are testing several sections of 20 to 30 feet thickness and then will generate a final "Intermediate" flow rate which they intend, in the success case, to comingle and put into long term production flow testing.

We have had the subthrust results, which are excellent oil, but tight....and they are considering in the future fraccing this to get flow.

Next up, potentially this coming week, is the Intermediate flow test results...... looking for anything over 400bopd as good, anything over 500bopd would be excellent.


https://seekingalpha.com/instablog/4127 ... e#comments

ActiveEurope 09 Jun. 2023, 4:20 AM Analyst

I had a quick catch up with management this week.

Firstly, Cascadura start up remains on schedule, expecting to start equipment testing circa June 16th and 10 days to 2 weeks to complete that. NGC pipeline is also on schedule and if anything might be ready just ahead of TXP equipment by a few days. All sign off/checking work has been running concurrently with appropriate staff on site to try and minimize days at the project end once all work is completed before final authority sign off.

Secondly, Royston testing to start early next week, they have planned a series of tests at 20ft or 30ft perforation thicknesses each so as to minimize risk if any water is encountered. There will be several of these, firstly in the subthrust sheet expecting 2-3days for each section. Once completed in subthrust they will move up to the important intermediate level where again a series of several tests are expected to be made using 20ft and 30ft sections each time.

Once complete, depending on results, they are hopeful to comingle and put onto medium term production testing.

Thirdly, they are scheduling rig drilling start up early August for further Cascadura wells. Lastly they look forward to license awards whenever these are announced but have no clarity on timing here.

[Proselenes]

Rumour has it the CEO has gone to T&T for the "Cascadura Online" ceremony, at which we can expect to see Stuart Young and lots of media coverage in the local T&T media outlets.

So if Paul arrived yesterday in T&T, should be spending today and perhaps tomorrow making sure all is arranged and ok for the "Ribbon Cutting and Turning on" ceremony either tomorrow or Thursday.

So I would guess an RNS (News Release) is going to appear tomorrow morning or Thursday morning stating that the Cascadura facility is going online.

Lets see.

[Proselenes]

Final inspection this week and then initial gas into the system........all systems are go.

https://www.londonstockexchange.com/new ... e/16061891

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[Proselenes]

Also good to see the pressure data.

Pressure in the wellbore is good and strong........and we will be taking off a little........good for recovery rates in the long term, and I am sure once the well bore has cleaned up they will increase the flow and ramp it up.

There has been talk in the background that if the Casca wells clean up good, then each one could produce at 50 a day..........eg only need 4 wells (2 at Casca A and 2 at Casca C to get to max production rate of 200 per day).

This is why currently there are only plans for 4 wells.......2 at A (already) and 2 at C.

They will monitor how the wells clean up and pressure data and gradually tweak it up.

[Proselenes]

I have a feeling the Royston testing is being "prolonged" as they want to hold it back until the Rio Claro license swap deal has been approved and finished.

Very good Royston results might make the other party want to re-negotiate the deal...........so better just plan some very extended tests and no news until those extensive tests have concluded........like after the swap deal..............