Touchstone Exploration Share Discussion Threads

[carpadium] 22/4/2015 07:54

Jb, thought the AGM was set for May 20th (?)

[dosser2] 17/4/2015 19:09

Up at last!

[jamesiebabie] 17/4/2015 17:51

JB - AGM is next week, so I suspect the next presentation will be out before then.

I also note that there may have been an insider buying last week, I'll ask the question.

[carpadium] 17/4/2015 16:24

Climbing steadily this week, plus strengthening CAD adding positively to UK holdings.

[jamesiebabie] 16/4/2015 21:06

The boss hasn't bought any more recently, nor has he been buying another stocks; he normally buys in two other companies at the same time.

The negative for Canada is a 'one-off', as they were trialling an innovative idea which failed, so they cut their losses and wrote it off. They are now concentrating on 'conventional' drilling which is why in the last 6 months they appear to turning a corner, but also remember the 'new' Viking assets look better than EME's EFS in terms of returns if you do your research.

There are tremendous gains to be had from the 'Viking', but I suspect they will be sold at a good profit to fund the proven T&T onshore plays.

[johnsmithmmxiii] 16/4/2015 20:05

JB, as txp doesn't yet seem to be rising along with the PoO I thought I would take a look and see what are the prospects here for some decent gains.

Just looking at the financials, I see that they had net funds flow from Trinidad ops of C$9.587mln but -ve C$9.197 from Canada. Do you know if the Canadian costs are either a one off cost of development of their in situ extraction method, or is it likely to be repeated this year as well? If they can eliminate or at least reduce these costs substantially then they should have decent Q1 earnings, if not then it could be quite a loss.

I see they have a 12m hedge for c.800bbls at $70 which is decent considering they took it out in 12/2014.

Cheers for any response if you have time.

ps Is their boss still buying?

[carpadium] 08/4/2015 08:33

Repsol probably a more likely bet.

[jamesiebabie] 08/4/2015 07:45

TRIN will be interesting to watch and you never know TXP maybe involved; a possible merger would give TXP easy access to the UK market and TRIN would benefit from a possible cash injection by using the $50M debt facility that TXP have access to.

The joint company would then have over 5,000bopd production, plus some excellent acreage.

Let's see what happens.

[blik] 06/4/2015 18:30

Touchstone Exploration (TSE:TXP) had its price objective cut by Mackie from C$0.75 to C$0.70 in a report released on Wednesday. Mackie currently has a speculative buy rating on the stock.

Shares of Touchstone Exploration (TSE:TXP) traded up 7.41% on Wednesday, hitting $0.29. The stock had a trading volume of 31,690 shares. Touchstone Exploration has a 52 week low of $0.25 and a 52 week high of $1.09. The stock has a 50-day moving average of $0. and a 200-day moving average of $0.. The company’s market cap is $24.10 million.

Separately, analysts at Canaccord Genuity lowered their price target on shares of Touchstone Exploration from C$0.85 to C$0.60 and set a buy rating on the stock in a research note on Thursday, February 26th.

[jamesiebabie] 31/3/2015 13:32

I understand TXP have been in London this week or so; it would be interesting to know what they were doing; I'm sure we will find out in due course.

I know I have encouraged them to go for a dual listing to gain further interest; I just hope they can do something.

[jamesiebabie] 31/3/2015 13:19

dosser - I'm not expecting anything special, although it would be good. When I compare this company to many others including LGO and CAZA to name but two, there are others, TXP looks good, it looks very good.

I missed this presentation from earlier in the year.

[dosser2] 31/3/2015 13:12

Should see a big re rating here later!

[jamesiebabie] 31/3/2015 13:00

Solid production, solid set of results, solid company with a plan.

[jamesiebabie] 31/3/2015 07:13

Update later today, I believe.

[jamesiebabie] 26/3/2015 08:31

Interesting presentation from Teine regarding the Viking play in Canada.

When the oil price reverse starts, the Viking could be a very good play, although I see either Teine or Raging River buying these assets of us.

[jamesiebabie] 24/3/2015 21:35

100k worked sell.

[dosser2] 24/3/2015 20:48

What a drop!

[jamesiebabie] 24/3/2015 16:27

From a BN issued today.

Solid reserves report includes Viking surprise

2P reserves up 35% YOY

Touchstone Exploration reported positive reserve results for the year-ended December 31, 2014. On a year-over-year pro-forma basis, the company realized a solid increase of 35% on its 2P volumes, which now stand at 17.8 MMboe. On a 1P basis, we estimate a 24% increase in reserves to 10.5 MMboe.

In a period of ongoing reserve write-downs, we believe Touchstone's ability to grow reserves demonstrates the effectiveness of TXP's current development program.

While the company's before-tax NPV10 declined slightly to C$395 million, it remains significantly above Touchstone's current enterprise value of only C$16 million; in our view, the disconnect between Touchstone's reserve and market values presents a BUYing opportunity for investors and potentially for other E&Ps.

Recognition in the Viking

As a surprise to the upside, Touchstone was able to book both proved and probable reserves on its recently acquired Viking acreage based on offset production results. In advance of a commodity price rebound, the company is obtaining necessary permits and establishing programs to execute a future Viking program. As a result, Touchstone was able to increase 2P reserves in Canada by 107% to 3 MMboe (97% oil weighted).

Reserve auditors GLJ assigned a before-tax 2P NPV10 value of C$40 million, while we currently ascribe no value to the Canadian assets in our NAV or C$0.60 target price.

Trinidad
Since the May acquisition of Touchstone's Trinidad assets, the company drilled 11.16 net wells and was able to increase 2P volumes by 26% to 14.8 MMbbl (100% oil). These volumes were in line with our estimates for 2014. Additionally, with 3.4 MMbbl of reserve additions over this period, we estimate an attractive 2P finding and development cost of ~$7/bbl.

Valuation
Overall, we believe today's report supports our BUY recommendation. We reiterate that Touchstone is a low-risk development story and that the company continues to trade ata discount to its peers and reserve value. We currently estimate a 2015E base NPV12 NAV C$0.70/share but given the company’s market capitalization and current market conditions, we discount our NAV in establishing our C$0.60/share target price. The key risk to our target remains the company's ability to compete for investor attention and maintain shareholder confidence through production growth and/or cost-cutting initiatives.

[jamesiebabie] 24/3/2015 13:44

All going to plan, a good reserves report.

[dosser2] 16/3/2015 19:11

How low can we go?