Touchstone Exploration Share Discussion Threads

[zengas] 14/6/2018 08:01

Thanks MT

Looking at 1000-2000 ft of pay potential in close proximity to the Carapal Ridge field 500 'BCF' + 25 mmboe liquids = 100 mmboe+ field.

Carapal Ridge 1 flowed 50 mmcf/d and 1,500 bls condensate from 5 intervals totalling 1,000 ft pay in the Miocene = 9,800 boepd.

4 fields immediately outside of the licence boundary Carapal 108 mmboe, Navette 60 mmbls, Catshill 30 mmbls and Balata east 10 mmbls = over 200 mmboe discovered.

TXP say that each of the 5 significant prospects has the potential to exceed the nearby Carapal ridge, then that suggests we are targeting 5X Carapal Ridge at 108 mmboe = ie in excess of 500 mmboe or $1b-$$1.5b (£700m-£1b) value at just $2-$3/boe.

Each prospect on that basis would imo be worth £140m to TXP compared to £18m m/cap now while comfortably underpinned by a near term 2,000 bopd and expected to more than double from here on P2 drilling.

[captainfatcat] 14/6/2018 07:40

Nice summary MT

[brasso3] 14/6/2018 07:05

My only concern with TXP is that I currently do not own enough shares!!!

[mount teide] 14/6/2018 02:45

From the AGM youtube presentation:

2017 Wells
CO368, CO369 and PS598 are currently producing 340bopd -
PS599 went back on production yesterday and is currently producing circa 50bopd
So collectively after 1 year of operation they are still producing close to 400bopd.

2018 Wells
First three have been on production for over a month
PS602 - is right on expected production curve
FR1792 - significantly exceeding expectation
FR1793 - is slightly ahead of expectation
"The latter two wells will be put on pump in the near future - that is when a better indication of the stabilised production will be possible - but in the meantime they are a pleasant surprise."
CO370 and CO371 will be put on production during the next few days.

Current production for the three 2018 wells in production in their present free flowing state is 264bopd - the seven day average starting May 31 to June 6th, 2018


Ortoire - exploration upside

Company has spent three years researching the block - has identified 5 significant prospects based on seismic and analogies with the geology of adjacent pools.

Three are in the South East Sector - they are oil and gas prospects deeper than any have been drilled on the block before at between 5,000ft and 12,000ft deep with between 1,000 and 2,000 potential feet of pay. Each has the potential to exceed in size the nearby Carapel Ridge Field (2002) - 500 BCM Gas and 25mm boe Liquids) - a BCM of natural gas is currently worth circa $2-3m in the US.

"If successful, it will be transformational for the Ortoire Block, the company and Trinidad."

The other two prospects are much shallower, very significant oil prospects with potential similar to two nearby pools in the back fields (Catshill), that have produced between 30m and 60m barrels respectively to date.

Company is planning to commence exploration drilling on the Ortoire block in Jan 2019.

[brasso3] 13/6/2018 21:44

Looking at slide 15 of the presentation. This would indicate that the FR-1792 well initially added around 200 - 230 BOPD. FR-1793 was not as good a performer around 70 BOPD. Total production from the 5 wells drilled is around 264 BOPD after high IP rates.

[2prsimo] 13/6/2018 21:39

Excellent post Zen - great opportunity here

[zengas] 13/6/2018 19:39

Great news on the dedicated exploration front starting in 6 months - could add very meaningful reserves.

I'm expecting a reserves increase this year from operations as was the case last year.

20 Wells per year should ramp up production significantly.

On the cusp of 2,000 bopd now. (1821 bopd + 2 wells to tie in and 5 further to drill before year end).

Average cost per drilled ft = $186.
FR-1792 = 5,378 ft.
FR-1793 = 3,820 ft.
CO-370 = 3,820 ft.
CO-371 = 4,530 ft.
PS-602 = 5,383 ft.
Average = 4586 ft.

If the wells are an average of no more than 5,000 ft we're looking at under $1m well or $20m worth of drilling.

My post yesterday -

1800 - 2,000 bopd at a net back of $25/b = $16.4m - $18.2m/yr.

No reason why they can't lift production by another 1,000 bopd next yr and $27m net back yr given the planned increased well programme at current oil price range.
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If they keep the 2nd rig they could have 10 additional wells drilled by the half yr.

If all goes well half/yr production could be in excess of 2500 bopd (net backs of $2m/month allowing for a lower oil price).

5k bopd production should be within sight and the possibility of significant reserves upside. Surely minimum of £100m m/cap target valuation on that basis.

[grannyboy] 13/6/2018 18:29

If the Ortoire Block is, that has been intimated to hold potentially large reserves..And the enthusiasm that PB is showing in his statement. "These are some of the most exciting opportunities I've seen in my 30 year career" ...

Then I wouldn't baulk at a fundraise if there was a possibility of unlocking these fields to greater production....

[mount teide] 13/6/2018 16:56

Highly encouraging news that the company is planning to dramatically ramp up the production development and exploration drilling programme in 2019.

"Company has 208 identified drilling locations and is targeting a drilling programme commencing 2019 of 20 wells a year" Paul Baay

Ortoire Block - 5 well drilling programme to commence in Jan 2019 - many potentially transformational targets identified.
The programme will be targeting both oil and natural gas prospects - with potentially very large reserves. "These are some of the most exciting opportunities i've seen in my 30 year career" Paul Baay

"Over 40% production growth y/o/y and we are still reducing our operating costs"

[captainfatcat] 13/6/2018 16:25

Makes you wonder when they start talking of pay zones being between 1000ft and 2000ft thick

[crooky1967] 13/6/2018 16:18

Ortoire sounds very exciting

[captainfatcat] 13/6/2018 16:12

Good webcast a lot looks to be happening over the next 24 months

edit here is the link

[croasdalelfc] 13/6/2018 15:50

4th well completed this morning, 5th well soon to complete

[dianecarberry] 13/6/2018 15:48

Are you Rossannan ?

[sleveen] 13/6/2018 15:48

4 * 2017 wells producing circa 400bopd currently.


2 wells about to start production in the next 2-3 days

Update on 2018 well production mid August.

[sleveen] 13/6/2018 15:44

yes it is.


6th well to spud today or tomorrow.

[croasdalelfc] 13/6/2018 15:43

6th well spudding today

[dianecarberry] 13/6/2018 13:49

12 working days to 30th June 2018, to publish the prelim results or TXP will be suspended.


Hope this helps Sleveen.