Touchstone Exploration Share Discussion Threads

[2prsimo] 27/4/2018 09:21

Looks like patience is wearing a bit thin for some - down again this morning

[2prsimo] 26/4/2018 13:55

Why is the market cap here so low - is it the level of debt?

Surely, it has to be better value than LGO MKii or the Trinity Tiddler

Needs a positive update to get the ball rolling

[mount teide] 24/4/2018 09:05

L2 - 3 v 1 / 14p v 14.5p - one other MM left on 15p the rest are on 15.5p

[mount teide] 24/4/2018 07:44

Telegraph article by Ambrose Evans-Pritchard the international business editor

[awise355] 24/4/2018 05:25

Was this in the Times newspaper friend?

[mount teide] 24/4/2018 01:16

Geopolitical storms threaten $100 oil as US shale struggles to plug the gap - Telegraph


'The world risks a full-blown oil shock within months as three geostrategic crises come to the boil and Saudi Arabia starts to whisper about $100 crude, setting off a speculative scramble by commodity hedge funds.

Brent crude has surged this week to a 40-month high of $75 a barrel even though the global economy is losing momentum. This price spike is different from earlier China-driven episodes over the last fifteen years. It reflects a constriction of supply and a rising "political premium". Such a context makes it more threatening.

It is now highly likely that Donald Trump will reinstate oil sanctions against Iran on May 12, this time adding extra curbs on distillates to increase the pain. Japan and South Korea will almost certainly join the Americans.

Most European firms will fall into line whatever the policy of their own governments since it is dangerous to defy the US Treasury. Most insurers and shippers will steer clear of Iranian cargoes.

“We are pretty confident that oil will be in triple digits by next year,” said Jean-Louis Le Mee from Westbeck Capital.

By then the oil market will be feeling the delayed effects of a 40pc slump in investment from late 2014 to early 2017, storing up a structural shortfall of 8m b/d. Westbeck estimates that extra barrels coming on stream from fresh fields will drop from 3m b/d in 2018 to 1.5 b/d in 2019...............

.....US shale output can no longer keep up with the global shortfall. Although US production has rocketed to a modern-era high of 10.5m b/d, a lack of pipelines is increasingly leaving “stranded barrels” in the Permian basin of East Texas. The new infrastructure will not be in place until mid-2019. The logjams are even worse in Canada.....

........Saudi Arabia and Russia are now signalling that they aim to extend the production caps deep into 2019. This has been the green light for hedge funds and ETF commodity investors. Ole Hansen from Saxo Bank said the speculative rush has pushed “long” commodity contracts to a five-year high of $1.09 trillion, just shy of the record in 2013.'

[mount teide] 23/4/2018 20:25

Indeed - energy sector investors will draw huge comfort from seeing oil hit $75 for the first time since 2014.

A lean, recession conditioned, low production cost TXP could't have better timed its two rig, 10 well development drilling programme and 2018 schedule of 24 well re-completions.

[che7win] 23/4/2018 19:49

Big recovery in oil price today

[awise355] 23/4/2018 17:47

Big trades showing

[awise355] 23/4/2018 13:33

In would hope for around 28p as the next level to move to and consolidate circa £36M market cap.A move then to £50M perhaps around the end of year on continued strong well performance and oil prices, this would follow Trins performance

[mount teide] 23/4/2018 13:12

Venezuelan Crude Exports: On A Downward Spiral? Clarksons Shipping Intelligence - 20 April 2018

'Venezuela has been a major player in global crude trade for years, accounting for an average of 5% of annual seaborne crude exports over the past two decades. However, amidst an escalating economic crisis, crude output and exports from the country fell notably in 2H 2017. With output decline projected to continue, it seems to be a case of not if crude exports will fall this year, but by how much?

Slipping Lower

In 2017, Venezuela was the world’s ninth largest crude exporter, shipping 1.6m bpd of crude - equal to 4% of seaborne crude exports. However, the country’s crude output has been steadily declining for the past decade, falling from 2.8m bpd in 2008 to 2.0m bpd in 2017. This fall largely arose due to long-term financial and technical mismanagement within state oil company PDVSA, but issues worsened after the oil price crash in 2014, which sparked severe cash flow problems due to the country’s reliance on oil revenue. Despite the continued fall in output, crude exports initially held relatively steady. However, last year, this began to change.

Caracas Starts To Crack

Against the backdrop of intensifying economic crisis, Venezuelan crude output fell 12% in 2017 to 2.0m bpd, the lowest level in almost 30 years. The decline largely took hold in 2H 2017, and by December output stood at just 1.6m bpd. Cash shortages meant that PDVSA struggled to buy the diluents needed to produce and ship heavy crude, a situation further exacerbated by the country’s selective default on its sovereign debts in November. As a result, crude exports took a notable hit, and by December were down 36% yo-y to just 1.1m bpd. The fall in shipments was not evenly distributed between buyers. Exports to the US and India (Venezuela’s only two significant cash-generating markets) each fell over 50% y-o-y in December. Meanwhile, exports to China actually rose over 20% yoy in the month, but, significantly, shipments to China are now largely part of oil-for-loan deals that generate no income.

The Only Way Is Down?

The decline in output has continued in 2018 so far, with production in March falling to 1.5m bpd. The situation has had tangible impacts on the oil market; overall compliance with the OPEC-led supply cut deal hit 163% in March, but had Venezuelan output held at its allocated level, this figure would have stood at around 120%, meaning Venezuela likely contributed significantly to the recent tightening of global oil supplies. Similarly, exports are expected to continue to fall, with the projected 0.5m bpd drop in Venezuelan shipments in 2018 providing a notable counterbalance to the projected 0.7m bpd rise in US crude exports, moderating the projection for global seaborne crude trade growth in 2018 to around 3%. With further US sanctions or PDVSA entering full default both possible, the outlook could deteriorate during the year.

So, with oil revenue central to the Venezuelan economy, the recent fall in exports looks to be perpetuating a vicious cycle. Some have reported that output could fall to 1m bpd by end 2018, a collapse that would be unprecedented in a country not at war. Even in the best-case scenario, it seems all but certain that Venezuela will continue to be a significant downside risk to global oil supply and exports this year.

[mazarin] 23/4/2018 09:43

Thanks MT for your throughly practical update

[mount teide] 23/4/2018 09:20

RNS - 14 March 2018:
'The PS-602 well on the Company's WD-4 property was spud on February 3, 2018 and was drilled to a total depth of 5,383 feet. The rig was released on February 14, 2018, and the well was cased for oil production. Wireline logs indicated approximately 270 feet of net oil pay as follows:

Upper Forest formation 108 feet
Lower Forest formation 162 feet
Total (net) oil pay 270 feet

The well was completed on February 27, 2018 perforating the lowermost 80 feet of oil sands encountered in the Lower Forest formation. The well was placed on pump on March 1, 2018 and is currently producing at a controlled rate of 56 bbls/d. The Company will continue to optimize production from this well.

The initial well on the Forest Reserve WD-8 block will spud in the next 48 hours following a delay of approximately three weeks related to the mobilization, inspection and certification of the drilling rig. The Company expects to drill the well to a total depth of 4,700 feet to target the Lower Cruse formation. Following the completion of this well, the drilling rig is expected to move to a second location on the WD-8 block.

Following completion of surface lease construction, the first of two planned wells on the Coora 2 block is scheduled to spud in the third week of March utilizing a second drilling rig. The Company is targeting to drill the well to a total depth of 3,800 feet. Immediately following this well, the rig is expected to drill a second well from the same surface location targeting oil reserves in an offsetting fault block.'


Today's announcement suggests they have completed the drilling of the WD-4 and first WD-8 and Coora 2 bloc development wells, and that the second WD-8 and Coora 2 wells are currently being drilled.

Impressive progress considering they encountered a three week delay with the first rig following drilling of the WD-4 well due to administrative/licensing issues with the rig.

[zengas] 23/4/2018 09:03

Didn't last years 4 well development programme and recompletions also lift P2 reserves by a net 18% over and above that years production to 18.55 mmbo P2.

Some of these current 10 development wells are also targeting zones not included and possible greater pay intervals and like last year, potential for a further reserves increase ahead of any dedicated exploration drilling.

[awise355] 23/4/2018 08:40

Just having fingers crossed the expectation on each well producing something is achieved. To have a strike rate of 10/10 on these Wells would be above the norm? Even in low risked areas?

[awise355] 23/4/2018 08:27

Got it from iii, wow going quickly then!

[grannyboy] 23/4/2018 08:21

Yes advfn are slow in putting this mornings rns up..

[lord gnome] 23/4/2018 08:20

LoL awise355. You do need to read beyond the headlines of any company RNS. Scroll down a bit.

'The Company is using the net proceeds of the private placement to complete a drilling program of ten wells on the Company's Coora 1, Coora 2, WD-4 and WD-8 properties. Touchstone is currently drilling the fifth well in the program and looks forward to updating shareholders in due course.'

[poombear] 23/4/2018 08:19

It was in today's RNS.