Touchstone Exploration Share Discussion Threads

[fardels bear] 15/11/2018 13:09

And isn't GENL in Iraq? Hands up who didn't get burned fingers in Iraq?

[buffythebuffoon] 15/11/2018 12:10

Oh no basem1,

Now you’ve done it! 😂

Buffy

[basem1] 15/11/2018 11:37

Zengas, there's no doubt your much better qualified to talk about this than myself, given your many years experience. I just like the economies of scale with DGOC and the near 60% margins. Along with the 6% dividend yield. I have made some good money out of TXP this year but I'm struggling to see the end game here. I realise the current market cap is peanuts but the production profile is never going to appeal to a predator. Just my humble thoughts.

[zengas] 15/11/2018 11:16

Basem, seriously what makes DGOC a better growth prospect than TXP ?

So too much debt at $15m and not enough production here ?
18 mmbls reserves = 83c debt per boe reserves.
2,000 bopd = $7,500 debt per producing boe.
M/cap £18.5m. (14.25p).

DGOC has $536m debt after the Core acquisition.
493 mmboe reserves = $1.08 debt per boe reserves.
71,000 boepd gas = $7,549 debt per producing boe.
M/cap £623m. (115p).

DGOC is swamped by more wells than employees and averages 1-2 boepd/well.
Currently a rising gas price is in it's favour though substantially hedged due to debt but prices can go both ways (supply/demand).

DGOC has grown only through borrowing/debt/share issues and buying production/reserves. It has never increased production or reserves through the drill bit ever.

There's more chance of TXP significantly changing it's debt to reserves/production cost profile not only on the successful outcome of one or two exploration wells as they draw nearer early next year, but also on steadily increasing its production from development drilling particularly at its current low m/cap.

[basem1] 15/11/2018 09:44

Too much debt and not enough production here. The pick of the sector imo are RRE/GENL and DGOC which is 95% gas. Thank me in a years time guys.

[homebrewruss] 15/11/2018 09:33

Proactive video from yesterday:
hxxps://www.proactiveinvestors.co.uk/companies/stocktube/11200/touchstone-declare-solid-quarter-production-in-q3-results

[ileeman] 15/11/2018 09:10

Nice summary MT.

As I keep saying great results and very much over sold accross the board not just here, people are in panic mode on the oil correction this is ussually the best time to buy. Once Oil starts showing signs of strength then you can expect all oil producers to bounce hard.

Some would rather wait until after the move however.

[sleveen] 15/11/2018 08:30

MT

Agree I've used peak rather than average.

[mount teide] 14/11/2018 20:43

LG - yes, it was a little disappointing but not altogether surprising considering the sharp correction in oil prices over the last month; largely the result of Trump hoodwinking Opec and Russia into massively ratcheting up production only to then offer Iranian oil sanction waivers to all and sundry. It will probably be a long time before Opec and Russia take any notice of Trump again with respect to requests to increase oil production.

Sleeven - for the sake of accuracy Q3 profit was derived from an average production of 1,758 bopd, generated from an average Brent price of $75.5 for the quarter ($68.48 realised price) - some 12% higher than the current Brent price.

Halfway through Q4 Brent has currently averaged $78.5 with average production to date circa 14% higher than Q3.

In addition, Q4 has production from 4-6 wells still to contribute: the final 4 wells of the 2018 programme and 2 recently drilled wells yet to be put on production from the deeper plays.

[sh0wmethemoney] 14/11/2018 19:26

Taken a small opening position here today

[lord gnome] 14/11/2018 16:48

Very disappointing response to today's results. What more do investors want? Happy to hold, but annoyed that I have missed a superb trading opportunity by not selling at 21p. Bah! I'll never get rich.

[ileeman] 14/11/2018 16:03

Oil price dropped 5% yesterday che7win, that is the reason for the drop.

Oil should be close to a bottom here.

[captainfatcat] 14/11/2018 16:00

Cheers for reaching out to the company for that clarification on that.

[che7win] 14/11/2018 15:56

I made contact with the company today.At current prices, they would still project in excess of $15million in cash flow next year.Debt isn't due for repayment until 2020, and that's the earliest date...So the way I see it, company can control their growth and manage cash flow, the share price shouldn't have fallen on those results IMHO.

[ileeman] 14/11/2018 15:00

Oil finally starting to show some signs of turning, TXP will turn with it.

[che7win] 14/11/2018 14:35

Brent up 2%.

[crooky1967] 14/11/2018 13:01

Thanks PP, I am in RRE also, so don't need any more oilers at present but will take a look.

[che7win] 14/11/2018 13:00

I wouldn't touch Argentina, high inflation and history of borrowing from the IMF, hard to repatriate funds from.Better to stay in a stable country.

[piperpeter] 14/11/2018 12:49

Take a look at what's going on at PPC, crooky. Over US$$40 per barrel net backs on the vast majority of its oil.

Imminently to acquire another oil field and a shut-in gas field, plus the associated pipeline infrastructure.

Major growth story in the making.

EBITDA running at over US$2 million per month (excluding the new well announced yesterday).

PPC

Pp.

[crooky1967] 14/11/2018 12:39

With POO falling and natural gas going mental, maybe we should start drilling in Ortoire next week

[on target] 14/11/2018 11:23

Sharp drops are not that uncommon, so it could continue on for a bit more:

[ileeman] 14/11/2018 11:14

Taken another 100k this morning, happy with that.

Great news this morning and either you believe oil is going to correct very hard north after this drop or you dont. Odds are it does.