Touchstone Exploration Share Discussion Threads

[grannyboy] 12/4/2018 11:09

So it's not only the LSE that consistently fail to keep up with the rising price of oil, and in so doing fail to value companies at a 'fair' market cap price..

[mr. t] 12/4/2018 10:29

Deloitte has issued a report that says upstream O&G share prices in general have underperformed since Jan 17:"The stock prices of 73 percent of upstream companies worldwide has failed to grow in line with oil prices since January 2017. Even companies in some of the most promising resources and markets-for instance, the Permian in the United States?reported an average shareholder return of -14 percent as against a 25 percent gain in oil price."hTtps://www2.deloitte.com/insights/us/en/industry/oil-and-gas/portfolio-optimization-energy-companies-upstream-diversification-index.htmlWhen sentiment changes, I'd like to think TXP will be a big beneficiary as it releases a string of (hopefully...) positive news about production, profitability and resource estimates.

[buffythebuffoon] 12/4/2018 09:11

Of course I agree with both of you, and I have a good size position. I was just trying to offer some sort of reason why the market cap is seemingly at odds with other T&T hydrocarbon producing companies.

Buffy

[mount teide] 11/4/2018 22:27

For an oil and gas industry starved of capital expenditure for close to a decade, in order to preserve cash to survive a 75% drop in the POO and, which now enjoys decade low drilling costs along with a strongly rising oil price, (up 100% from the lows), is probably in its best shape its been, from an investment perspective, for nearly 20 years.

[brasso3] 11/4/2018 22:06

I agree with that but the small amount of debt is not a problem with WTI at 65 and Brent at $70 per barrel. Debt becomes a concern with oil down at $50/ barrel. If TXP get past 2000 BOPD in the next few months that debt will disappear pretty quick.

[buffythebuffoon] 11/4/2018 22:04

The market doesn’t like debt, seemingly regardless of the production profile.

Buffy

[brasso3] 11/4/2018 21:52

I like CERP but TXP is currently a much more attractive proposition.

TXP has half the market cap and three times more production than CERP. Go and figure that one out...

[buffythebuffoon] 11/4/2018 21:27

Don’t undersell the investment case MT...

Buffy

[mount teide] 11/4/2018 17:12

Brent up another 1.9% today to $72.50 - having averaged under $50 for the last 3.5 years - exquisite timing by TXP to commence a fast tracked, low cost, 10 well, production development drilling programme utilising two rigs.

[crooky1967] 11/4/2018 14:48

Count me in Buffy. Oil up $0.54 so far today, that's another $651 in the bank. Come on $80.

[buffythebuffoon] 11/4/2018 11:25

Crooky, on your figures we’d add a quarter of our current market cap per year for a $10 rise in the OP.

Maybe some of us should get together and buy the company.

Buffy

[crooky1967] 11/4/2018 09:29

Good if it goes up to $80 a barrel. Based on the last Touchstone presentation I saw, for every $ the oil price goes up TXP make 2/3 in cash due to fixed costs. That means if they are producing 1700 bopd that is $1122 profit a day for every $1 increase.

CERP's latest RNS states they are making $700k a quarter which works out at $12 a barrel based on their production. Using the same rate for TXP this works out at $620k a month based on 1700 bopd. CERP market cap is £32m?

Just imagine the figures when they get to 2000 bopd and above.

[mount teide] 10/4/2018 23:05

Saudi Arabia Secretly Targeting $80 Oil



'Saudi Arabia is likely targeting oil prices at $80 a barrel to boost the valuation of its oil giant Aramco ahead of its much-hyped IPO and to help finance increasingly ambitious domestic policy plans, Bloomberg reported on Tuesday, citing people who have spoken to Saudi officials.

Although Saudi officials have been careful not to point to a specific oil price target in private discussions over the past month, “the inescapable conclusion from the conversations was that Riyadh is aiming for $80,” according to the people who spoke to Bloomberg on the condition of anonymity.

A couple of months ago, Saudi Arabia was reportedly targeting oil at $70, but that was before Riyadh admitted that Aramco’s initial public offering could take place in 2019, instead of in the second half of 2018, as it has been planned for years.

In an interview with Time magazine last week, Saudi Crown Prince Mohammed bin Salman—the proponent of the Saudi economic overhaul to diversify from oil—for the first time linked oil prices with the Aramco IPO.

Asked about the delayed listing, the Crown Prince said: “We do not delay it. We said we will be ready to IPO around 2018. And we are ready. We did all the laws. We did all the steps that are making us ready to IPO it. Now it’s a matter of choosing the right time. So we believe oil prices will get higher in this year and also get higher in 2019, so we are trying to pick the right time. But we are ready to IPO it now if the time is right.” '

[mount teide] 10/4/2018 22:59

Brent currently up 3.82% at $71.16 - highest closing price since 2014.

[crooky1967] 10/4/2018 21:05

Seems to be a no brainer to me. 10 wells being drilled by end August, if oil prices stay where they are then probably another 10 being drilled after that. My expectations are that 3200 bopd will be achieved by Apr 19. Drills after that would be subject to oil prices at the time.

[grannyhassnuffedit] 10/4/2018 19:02

Boy this place is dead why you not talking it up comon get ramping you lazy gits

[mount teide] 10/4/2018 14:32

ross - 'Garnhiem' - not only is the quality of his recent research poor or nonexistent but, he then uses it to make sweeping generalisations that do not stand up to the slightest objective examination.

He should send his 'research' to high conviction sector specialists North Energy AS, who took 5% of the Company last summer and another 5% in a placing at a 50% premium some 6 months later - as i'm sure they would be only too pleased to know where they are going wrong!

[buffythebuffoon] 10/4/2018 14:16

transmar, you need to take responsibility for your own investments.

Buffy

[mount teide] 10/4/2018 13:58

'I see the chart here has a certain familiar look to it,don't you think?

Buyers beware.'

Another investment 'guru' generously gives the board free of charge the 'benefit' of his oil and gas sector 'wisdom'!

Filtered - life is simply too short to waste it reading hugely embittered, inane nonsense.

[grannyboy] 10/4/2018 13:48

Well transmar if you can't do your own research maybe you deserve all you get..have you done any research on TXP or are you just blinded by your past dalliencies?..