Touchstone Exploration Share Discussion Threads

[mount teide] 20/6/2018 19:06

Ortoire - "These exploration targets are large, they are world class exploration targets - and are low risk."

"Were looking for wells that can do 2,000 bopd - these are wells that will be twinned with wells drilled in the 1950's/1960's"

"Low risk" low cost exploration wells that each has the potential to exceed current daily production!

With the current production development programme exceeding expectation and financed from cash flow and, the ultra high impact Ortoire exploration programme of world class targets due to start in jan 2019 - the next 12 months should be a helluva interesting time to be a TXP shareholder - particularly with the company currently generating $14m/year of cash with an £18m market cap !

[sleveen] 20/6/2018 18:56

sp has been 16p+ when TXP were producing 1400-1500bopd in Oct/Nov...so 2000bopd?


No ramp intended.

[walter walcarpets] 20/6/2018 18:48

That's very conservative sleveen!

[sleveen] 20/6/2018 18:30

Wow, best interview yet!

Thanks for sharing Crooky.

Edit: Surely a conservative 18-20p soon?

[crooky1967] 20/6/2018 18:20

Indeed Mr. T, not sure how he can sit there and not wet his pants with excitement when talking about possible 2000bopd wells next year.

[mr. t] 20/6/2018 18:04

crooky , Paul Baay gives a confident interview. Production ahead of forecast. Costs reducing as expected. $34/bbl current netback. $14m cashflow in 2018 covers drilling costs. Lenders supporting increased drilling next year. Add today's oil prices into the mix and good news flow due in the coming weeks, and Touchstone is a compelling investment opportunity.

[crooky1967] 20/6/2018 16:57

Proactive interview

[lord gnome] 19/6/2018 15:34

That sounds like a very expensive bit of financing to me. I wonder what the true APR is on that loan? Flat rate 8% compounded quarterly?

[sleveen] 19/6/2018 15:15

Touchstone is required to repay $810,000 per quarter commencing on January 1, 2020 through October 1, 2022, and the then outstanding principal balance is repayable on the maturity date.

The Amended Term Credit Facility continues to bear a fixed interest rate of 8% per annum compounded and, payable quarterly.


----> interest has always been paid quarterly, the 810k is capital.

[flyinghorse1] 19/6/2018 14:28

The way I read the current and old loan info is that we pay interest now regularly till 2020 and then the principal amount starts

[sleveen] 19/6/2018 14:08

flyinghorse

Those payments included capital .

[fireplace22] 19/6/2018 14:03

Headwinds like this:

[flyinghorse1] 19/6/2018 11:49

I thought the interest payments were being paid from jan 2018 at quite hefty terms and still are. It’s the principal they have delayed.
I do hold but had hoped to see capital paid down sooner than later.

[captainfatcat] 19/6/2018 10:54

rossannan all those events will be temporary blips. World population expected to grow by one billion in the next ten years and the demand for oil is going to be higher than ever. Its unavoidable

Edit Libya's oil export terminal looks like its at risk of shutting down half its storage tanks have been blown up.

[futuredlighter] 19/6/2018 10:48

no trades at all today..

strange

[mount teide] 19/6/2018 00:46

Pushing the payback of the interest on the Credit Facility down the road by 12 months to free up a total of $8.2m for a one off payment of $0.15m, is not only a great way to finance the 2019 5 well, high impact Ortoire bloc exploration programme - where success at any one of the 5 large prospects has the potential to be completely transformational for the company - but will probably prove to be highly prescient from an oil market timing persecutive.

The ongoing depletion of existing non-shale oil output is directly the result of a lack of investment in new projects over many years - it will ultimately, i.e. within a couple of years, trump whatever production increases US shale and OPEC can come up with.

Even if non-shale oil sector investment surged from tomorrow, which it will not, it would take at least 3-5 years for the production benefits from such investment to be realised.

Major oil supply shortages and very high oil prices over the coming years are unavoidable now, as are major copper market deficits and much higher copper prices for exactly the same reason.

[captainfatcat] 18/6/2018 17:11

Absolutely 8-)

[crooky1967] 18/6/2018 15:05

Looks like good news for investors and a good move by the board. Looks like this cash will go some way of paying for the Ortoire drilling campaign while cash from operations pay for the other wells. Bopd by the end of 2019 could be a very significant amount especially if they find resources in Ortoire.

[sleveen] 18/6/2018 10:59

Late reported 100k buy @ 8.49am.

[captainfatcat] 18/6/2018 10:33

Yes indeed, while frustrating the share price is not reacting todays rns its still excellent news for investors, hopefully a key part in unlocking the potential here.

I hope to add some more when funds allow.