Touchstone Exploration Share Discussion Threads

[lazarus2010] 31/8/2015 18:17

price looking a tad better, should be more to come assuming oil continues rising now the bears are covering their *rses

[lazarus2010] 17/8/2015 13:17

results don't look too bad all things considered!

[lazarus2010] 17/8/2015 13:03

thanks for the link JB

[hamlette] 14/8/2015 10:20

Touchstone 2nd quarter results announced. May explain yesterdays drop to 0.18.

[lazarus2010] 14/8/2015 09:32

sp not looking too good for any oil stocks at the moment, I expect TXP to be doing some serious backroom work to lower costs and identify potential assets for acquisition. Unbelievable that this is down from 1.00 to 0.18 and the boss was buying at the highs, so must have a lot of confidence in the company and its assets, but you can't do anything about the PoO other than have some strong hedges in place, which TXP have.

[jamesiebabie] 08/8/2015 20:35

Laz y sources still think TRIN are asking too much; watch and see.

TXP have cash if the right assets come along at the right price. TXP seem to be saying they have use of the debt facility as well.

I also think the T&T government will be starting to feel the pinch.

[lazarus2010] 07/8/2015 09:47

JB, you bought/buying any trin? Seems priced for a t/o or big sale of assets. Any company with a pocketful of cash and a long term investment horizon would do well to snap them up with c. 3k bopd of production. If TXP got them for a song it could be a tremendous deal if it doesn't put the whole co. at risk due to financing covenants.

[jamesiebabie] 22/7/2015 16:26

Laz - As far as I am aware all contracts on the island are based on the same price; I suppose the difference is how the two companies differentiate it. #TXP are Brent, LGO are WTI.

Oil is priced on what the refinery sell it at and all taxes are based on that exit price, irrespective of what grade oil it is, aimho.

[lazarus2010] 22/7/2015 16:03

Nice one! Would that be C$ or US$? This still leaves their Saskatchewan operations which were the main loss making op's in their portfolio. If they can turn that one around or dispose of it (294bopd production in the May report) and just leave themselves focussing on Trin then that will be a good move.

Just need the PoO to improve and no sign of this happening yet!!

Did you find anything out about the WTI vs Brent situation? Is it down to the type of license that they have? As I posted, LGO contract is based on WTI.

[jamesiebabie] 22/7/2015 15:33

Looks like TXP are getting rid of the non profitable parts, which was one of your concerns Laz. I suspect TXP will have removed some significant overheads as well.

[sleveen] 21/7/2015 15:58

JB

Thanks

[jamesiebabie] 21/7/2015 15:46

sleveen - they have various agreements; with Ortoire it is an Exploration licence. Look at page 27 of the recent presentation; attached for convenience.

[sleveen] 21/7/2015 12:41

Hi JB

Do TXP operate under a IPSC?

[lazarus2010] 21/7/2015 12:24

ok, I thought LGO pricing was based on WTI...

Oil Price
Risk
The Group is exposed to commodity price risk regarding
its sales of crude oil which is an internationally
traded commodity. The Group sales prices are based
off of two benchmarks, West Texas Intermediate (WTI)
for sales in Trinidad and Brent Crude (Brent) for
sales in Spain.

[jamesiebabie] 20/7/2015 15:17

Laz - Trinidad is based on Brent and always has been. I do not think they hedge their Canadian production.

[lazarus2010] 20/7/2015 09:03

JB, thanks for that, much appreciated. Any explanation as to how did they hedge against Brent prices when afaiaa they are in two locations, both of which use WTI pricing? It's not like they can take their own oil and export it?

Anyway at least this part of their production is still profitable!

[jamesiebabie] 17/7/2015 15:23

Laz - answer from the company.
"
Correct, the hedges are outside of the royalty and SPT charges. Note that the hedges are based on Brent pricing (not WTI). "

[jamesiebabie] 17/7/2015 12:52

Nope and tbh I'm not expecting much for a while from my O&G stocks; so diversification is ok by me.

[dosser2] 17/7/2015 12:41

Is anyone making money here?

[jamesiebabie] 17/7/2015 11:58

Laz - I'll ask about the hedge.

With regards to costs I think there was another slashing which will be noticed in the next update; one of my contacts has gone and was a casualty of the cost cutting exercise. TXP are slimming down!

[lazarus2010] 16/7/2015 19:02

I see that NR at LGO is stating $9/bbl opex...so how come TXP are showing $16? It's also clear that they need to slash G&A further, far too top heavy it would seem.

[lazarus2010] 16/7/2015 10:53

JB, do you think the hedge is outside of the royalty and SPT calculation? ie they only pay royalties on the actual WTI, meaning that the profits from the hedge at $70.60 - WTI (actual) is fully retained?

I note that in the video you linked to it was stated I think that they see $7 profit at $55 if I remember correctly, but from pages 18,27,28 I can't see any profit?

$55*71.5% = $39.325
les opex and GG&A (I calculate this as $16 + $24 = $40, or is the Gross opex inclusive of GG&A?) = -$0.675

But worse than this, the SPT comes from revenues after only royalties, so there is SPT of 18% on $39.325 = $32.25 from which opex and G&A are then deducted, meaning a loss of c.$7.74/bbl at $55!?

I hope I am interpreting this incorrectly!

[lazarus2010] 16/7/2015 10:32

looks identical to previous presentation to me, including the spelling mistake of 'recovery factory'