Touchstone Exploration ( TXP )

[Proselenes]

Ok.

Now corrected.

Correct Dec 18th 2020 FinnCap update on TXP in the link below.

https://gofile.io/d/NVAHWT

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[Proselenes]

Canaccord Genuity analyst Charlie Sharp upgraded Touchstone Exploration Inc. (TXP-T) to “buy” from “speculative buy”

“The formal conclusion of a gas sales agreement (GSA) with the National Gas Company of Trinidad and Tobago establishes the detail of the long-term offtake terms for Ortoire licence gas (TXP, WI 80 per cent),” said Mr. Sharp. “The delivery of the agreement was anticipated before YE20, but that does not diminish its importance. It is clearly a critical plank in providing security of commercialization of all the gas resources, found and to be found, on the licence. While the development plans for discoveries so far on the licence - Coho, Cascadura, Chinook Deep, and Cascadura Deep - were all gaining momentum, those can now be firmed up with clarity on the terms and conditions.

[Proselenes]

New interview with Paul Baay

https://www.youtube.com/watch?v=-5Tlw1dSBcw

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[Proselenes]

New interview from Directors Talk.

Dividend will be considered further down the road.......2022 methinks.

https://www.directorstalkinterviews.com ... /412949814

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[Proselenes]

This was an email response to a shareholder question about the NGC deal


Thank you for your email.

I am able to tell you that the gas price is a fixed price with an annual escalator tied to inflation and then after five years there is a price reopener if either party requires.

The initial price is the Trinidad Domestic (Industrial) price. Most of the analysts that cover us have independently uncovered that price to be about $2.45 USD at the wellhead. We can confirm that this is reflective of the contract. When looking at the price, one needs to be aware that NGC is paying all capital and operating costs except for $.02-$.03 per mcf of operating that we will be incurring to extract the free liquids. That said, the only deductions from the Trinidad price will be our operating costs (as stated) and 12.5% royalty. Further, once we start producing the following details will become evident in the financials .

The term of the contract is for the entire term of the production license, which is 25 years.

Regards,

Stacey Gundersen

[Proselenes]

MT reworked the cash flow with the new update from the email…here it is below :

Have run the numbers again and the potential cash flow generation is almost beyond belief with OPEX of $0.02 to $0.03 mcf:

Using the following assumptions I get on a PER WELL basis:

Average Nat Gas Production rate per well: 35 MMcfd production / 12.77 Bcf/year

Average Liquids Production rate per well: 750 bopd

Field Reserves: 1 Tcf

Nat Gas Contract Operating margin $2.40/Mcf (I conservatively used $1.50 Mcf in my previous calculations)

Cash flow per day:

Nat Gas - 35 MMcf x $2.40/Mcf = $84.0k

Liquids - 750 bopd x $50 = $37.5k

Total cash flow per day: 121.5k…this is equivalent to $44.35m/year per WELL!
(For a well which costs circa $3.5-4.0m to drill and test and a max $5.0m to bring into production)

1 Tcf reserves divided by annual production per well of 12.77 Bcf/year = 78 years of production.

78 years x $44.35m cash flow per well per year = $3.5bn cash flow per 1 Tcf of reserves.

With 2 Tcf of reserves and 10 wells the annual cash flow could be $435m with a field life of 15.7 years.

DB - some might suggest if Cacsa Deep Deep and Royston come in and take the reserves to circa 2 Tcf - it may well support a valuation in the £15-20/share range.

AIMHO/DYOR

[Proselenes]

Cormark upgrade TXP to top pick today and 4$ target price.

https://www.theglobeandmail.com/investi ... rades-141/

......Cormark Securities analyst Garett Ursu upgraded Touchstone Exploration Inc. (TXP-T) to “top pick” from “buy” with a $4 target, up from $3.75..........

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[Proselenes]

Director buy.

30,000 at 116p by Non-Exec

https://www.investegate.co.uk/touchston ... 49027430J/

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[Proselenes]

Some details.

Coho 10 mmscf/day production by end of February 2021.

On current discoveries Paul is looking for 100 mmscf/day and 2000 barrels of condensate per day production by end of 2021. (Casca/CascaDeep/Chinook).

If Royston successful then adds another 100 mmscf/day to that (plus any condensate if wet).

Loads of upside to come in terms of more gas to add to the 1 TCF figure - with more exploratory drilling.

5 to 10 year drilling program ahead...one which will be self financing......

Nice interview.


https://www.stabroeknews.com/2020/12/25 ... ft-of-gas/

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[Proselenes]

https://www.investegate.co.uk/touchston ... 00050644K/

EXTENSION OF LEASE OPERATORSHIP AGREEMENTS

CALGARY, ALBERTA (December 30, 2020) - Touchstone Exploration Inc. ( " Touchstone " or the " Company " ) (TSX, LSE: TXP) announces that it has extended the term of its Lease Operatorship Agreements ("LOAs") with Heritage Petroleum Company Limited ("Heritage") for its Coora-1, Coora-2, WD-4 and WD-8 blocks to March 31, 2021.

The LOAs were originally set to expire on December 31, 2020 and have been extended under existing terms and conditions while Touchstone and Heritage progress on negotiations regarding new ten-year LOAs for each property.

[Proselenes]

What happens after Royston-1 is drilled ?

Well, the road to Casca/Chinook is going to be busy and work ongoing on both sites installing the surface facilities etc....

I believe, if Royston is a success, then they will drill another 2 wells at Royston and plan to bring on another 100 production when Royston goes into production.

Each well giving around 33 per day........

And of course, there is a massive Cretaceous prospect underneath the mid-Miocine gas target.

XM has already said that that Cretaceous target will be poked with a future Royston well, not the initial well, the initial Royston-1 is only going into the mid-Miocine gas target.

So that what I think will happen........ Royston-2 might appraise "the" (all being well) mid-Miocine target but be perfect for the sweet spot of that Cretaceous target which might be oil, or gas........we shall see.

Then a Royston-3 well after than........... allowing at the start of 2022 the surface facilities and pipework to be put in place for 3 wells at Royston while the rig goes off hunting those other 21 prospects........ ?????

Just my thoughts.

[Proselenes]

They will be installing surface facilities at Casca and Chinook in Q3/Q4 2020.........they wont be going near there with a drilling rig imo.

Thats why for me it makes sense to drill 3 wells at Royston............Paul has talked of "adding another 100 production from Royston" and that would tie in with 3 wells.

XM has said they will poke that deep Cretaceous target at Royston with a "future well"...............

Royston also likely extends into the LOL acreage to the North.

As an alternate to 3 wells purely in the Ortoire block Royston area might we see :

Royston-1 - as planned (and if successful then.......)
Royston -2 - appraise Royston discovery and go into Cretaceous target as well to have a look for oil/more gas
Royson-3 - Joint venture well with LOL in the LOL acreage to the North as outlying appraisal well.


(Might be why the 2D seismic being run goes into the LOL acreage......a potential plan for a 3rd well being in the LOL area as a JV well).


Just thinking out loud.

[Proselenes]

Dont forget to register........... TXP one of the companies presenting. Registration link below.

https://event.webinarjam.com/register/900/oyy2gswy5

Thursday 14th January from 6pm UK time.

[Proselenes]

Looks like it might be the next drill after Royston, if it is I will be glad. That big Cretaceous target could be oil (or gas) and drilling it makes sure that if a takeover comes, at least its been drilled. Would hate to leave a potential 200 or 300 million barrel oil target not drilled.................. Lets see if it is.

Photo in the below link of what I think will be Royston and the new "Steelhead" drill locations.



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[Proselenes]

Not sure.......looking at the seismic lines they are doing, it might be that lower Mid-Miocine gas target that is Steelhead.

Not conclusive.......have to wait for XM or Paul to detail it.......most likely Paul in the upcoming presentation on the 14th Jan.

[Proselenes]

Been confirmed...........Steelhead will be a Mid-Miocine gas target.

Testing appears to be ongoing now........so should be some initial news before the Proactive webinar on the 14th

[Proselenes]

Methanex needs gas..........urgently........

One wonders if any TXP link up with LOL in their acreage might be sold to Methanex if it happened.........as the whole of Ortoire is going to the NGC.


https://ca.finance.yahoo.com/news/metha ... 00633.html

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[Proselenes]

Brent at 56$ now.

They should be now making over 1 million dollars per month now, from oil sales in the old southwest area, with the oil price at 56$ a barrel.

Thats based on them getting over 25$ per barrel after royalties and opex.

Coho-1 online soon to add to that.

[Proselenes]

Interesting......the oil surplus might be gone by late summer, in which case, expect 60$ WTI and 65$ Brent late summer as well.

Wonder if Paul will push for his 'third rig" and start drilling on the South Western oilfields..........cheap to drill and print money each well they sink.




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[Proselenes]

RNS Number : 6244L
Touchstone Exploration Inc.
14 January 2021

Touchstone Exploration Inc.
("Touchstone" or the "Company")

Proactive One2One Investor Forum


Touchstone Exploration Inc. (TSX / LSE: TXP), an oil and gas exploration and production company active in the Republic of Trinidad and Tobago, will be presenting at the Proactive Investors One2One virtual investor forum today, 14 January 2021 at 18:00 GMT.

The presentation, given by Paul Baay, CEO, will be followed by a virtual Q&A session. To register for the event please use the following link:

https://www.proactiveinvestors.co.uk/re ... etails/311 .


For further information, please contact:

Touchstone Exploration Inc.
Mr. Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487
Mr. Scott Budau, Chief Financial Officer
Mr. James Shipka, Chief Operating Officer

Camarco (Financial PR)
Nick Hennis / Billy Clegg Tel: +44 (0) 203 781 8330