Touchstone Exploration Share Discussion Threads

[mount teide] 14/8/2018 09:24

Ross - it is completely disingenuous to suggest that TXP will need another 4 wells by year end to hit 2,000 bopd - since it does not stand up to the mildest test of objectivity.

Production from the 7 wells further wells originally planned for 2018 would ONLY NEED TO AVERAGE JUST 34 bopd from each to surge through 2,000 bopd by year end. The average per well to date from the first 7 wells of the 2017/18 now 18 well production development programme is 2.5-3 times that figure!

Paul Baay is doing what he said he would do on freeing up the restricted cash connected to the loan - using some of it to 'drill more wells' - particularly since, as is normal practice, TXP will have added a number of option wells to the existing 10 well drilling contract negotiated at rates 42% below what TXP paid in 2014/15.

[flyinghorse1] 14/8/2018 09:23

Well cost for 4 additional wells $1.2mm USD, an increase- must be due to drilling in the rain , which they saw as being more expensive.

[captainfatcat] 14/8/2018 09:18

Would I be correct in thinking that the production from the Icacos block is now no longer included in the latest production figure?


"On June 21, 2018, we entered an agreement to dispose of our 50% operating working interest in our non-core Icacos block to our third-party partner for minimum consideration of US$500,000. Consideration will be paid based on the Company's working interest net revenue it would have received had it retained such interest through December 2021. The property averaged 10 bbls/d of net crude oil production in the second quarter of 2018. The agreement was effective April 1, 2018 and remains subject to local regulatory approvals."

[crooky1967] 14/8/2018 09:13

That would be good MT. My thoughts are between 3100-3300 by end of next year.

[captainfatcat] 14/8/2018 09:12

Rossannan I have a totally opposite view to you on this and see the additional wells as follow ons prioritising drilling in areas that have proved to give higher flow rates TXP state its to add incremental production improving the company's growth it does not say they will be drilling the additional wells to offset production decline.

"Increase in 2018 Drilling Program
We are increasing our 2018 capital program by US$4.8 million, which will result in four additional wells drilled prior to year-end. The Company expects to drill the four additional wells on our WD-4 and WD-8 properties. The additional fourth quarter capital is expected to add incremental production volumes in early 2019 and further improve the Company's growth plans."

[mount teide] 14/8/2018 09:05

Production from the 11 additional wells by early Q1/2019 would be targeting a production increase of:

2,307 bopd @ an average of 50 bopd performance from each well

2,632 bopd @ an average of 75 bopd

2,747 bopd @ an average of 90 bopd

Add in a conservative 12-15 well programme for 2019 and 3,500 bopd by end of 2019 could be a realistic target.

[che7win] 14/8/2018 09:00

A cracking set of results, very pleased.And they are accelerating production increases. I think MMs dropped today to get a few panicky sells, but really it should be rising today.Should easily get above 2000 bopd by year end, a bright outlook IMHO.

[captainfatcat] 14/8/2018 08:36

Steady progress being made, interesting choice of location for the extra wells wonder if comingling production from different formations has proved successful.

Tick Tock

[mount teide] 14/8/2018 08:27

pro - really? Some short term traders suggested that last year when three of us added circa 1% at 8.5p!

Long term investors will be focused like a laser on the value the management will add to the business over the next 6 months from a further 11 production development wells and the announcement that spudding of the first of the ultra high impact, "low risk" Ortoire wells has commenced!

Many short term traders who got out of Clarksons in 2001 at the start of the recovery phase of the new shipping/commodity cycle, then watched in horror at missing out on another 8 fold increase over the following 5-6 years.


Oh dear ross - reduced to using short term spikes in 10 bopd well workovers to make a point is amateurish and potentially underhand - professionals like Paul Baay prefer to wait 30-60 days before reporting well drilling and workover production increase data.

That's why the Jan 16 figure of 1,492 bopd is what professionals would use for comparison purposes with the estimated July figure of 1,757 bopd - but then they do not have an agenda!

[pro_s2009] 14/8/2018 08:08

Mmmm whether the results are good or bad in cases like this is really only seen by the share price action following.

Good = rise

Bad = fall

The market will show its feelings to the results and it matters not what people think on posts on BB's.

[mount teide] 14/8/2018 08:01

Very pleasing Q to Q progress - in line with expectation.

News of expansion of the 2018 programme by a further 4 wells is highly encouraging as presumably it is to take advantage of options negotiated as part of the 2018 low cost 10 well drilling contract.

[zengas] 14/8/2018 08:00

Great set of results.

CO-370 & 371 to be on primary zone production before end of August.

CO-372 & 373 expected to be on production within next 2 weeks.

Another 2-3 weeks to close 2k bopd gap possibly via above 4 wells.

8th well spud imminently and now 6 more wells (increased by 4) to drill this year so that is 7 wells still to spud.

Should be heading for 3,000 bopd quicker than expected in 2019.

[novicetrade68] 14/8/2018 07:58

On LSE Ross wrote he/she hopped off the bus since last Thursday, so clearly a case of selling out followed by deramping galore, very annoying, but I guess everybody talks their own book here, me included.

[mount teide] 14/8/2018 07:53

'but at least this will address the problem of declines unmatched by workovers - 100 bopd Feb - July and presumably the same again Aug - Dec - recovering that 200 bopd and possibly more in Q1 2009'

lol! Complete nonsense crafted to mislead!

The production increase from 16th Jan of 1,492 bopd to the estimated July figure of 1,757 bopd (with three 2018 wells contributing and after 9 worker-overs) was circa 265 bopd - entirely consistent with management expectations and what would have been expected.

To describe this as an unmatched 100 bopd field decline over 6 months smacks of disingenuity!

If that's the best you can can come up with ross - i'd leave single company investment in the recovery phase of the commodity cycle to the professionals!

[essential] 14/8/2018 07:52

Just look at that parabolic chart - yet to reach its conclusion!

[ballymoss18] 14/8/2018 07:51

Costa looks like you are desperate for a lower price.

[brasso3] 14/8/2018 07:51

lol. Some desperate people on here. The debt is easily manageable and will become insignificant very soon. 2000 BOPD around the corner...

[awise355] 14/8/2018 07:50

Very encouraging that de-ramping has increased 400% over the last 24hrs!

[astorcourt] 14/8/2018 07:49

To much debt here. avoid this one.

[spangle93] 14/8/2018 07:49

Seems like whether you're positive or negative about the company's prospects, there's something in the results that will reinforce your views

[costax1654x] 14/8/2018 07:49

I presume you can't understand the RNS?!