Touchstone Exploration Share Discussion Threads

[dalesman] 27/5/2015 11:45

Re Trin accounts From John on the LGO board

speculater

Was having a browse through them myself earlier. The write downs are the major issue for them, with capital expenditure now not available for projects, the 2p reserves have suffered. The accounts show a operating profit of $12.2m before exceptional items, which are huge at $123m ( US$92mln impairment for property, plant and equipment and around US$37mln for exploration assets. And subsequently, it equates to an operating loss of US$123.7mln).

The ongoing situation will not improve either by the looks of it, and growth is very much no stagnant until they get more finance or even clear old debt at the very least.

These two companies (RRL and TRIN) tried to run before they could walk, and this is the result today.

Will be very interesting to see how TRIN do with any merger or disposal of assets, they are in a negative position, and that is not a good place to start negotiations from.

Best regards

John

[johnsmithmmxiii] 27/5/2015 08:00

Trinity rns out

[jamesiebabie] 23/5/2015 09:42

Laz - it would appear the directors keep on buying, this time at 35c. I'm trying to find out if these buys are like buying in the open market or if they are options. It would appear it is like buying in the open market.

I know that they HAVE to buy as part of their contract and they have hold a set percentage within so many years, so that they 'have some skin in the game'.

[lazarus2010] 22/5/2015 14:03

JB, re LGO - yes it is, but as ever with rns's it's a case of the market expecting the rns and selling on the news. Too many bb'ers bigging up every possible news so that when it actually arrives it's a bit disappointing. What is very encouraging however is the talk of 60 C-sand wells 'minimum'. Considering this time last year I think there were only planned to be c. 7 wells before moving the rig off and bringing in a smaller rig to drill just the Goudron sands, clearly the results from the C-Sands have been so good that the strategy has been turned on its head and increased c. 10 fold.

[jamesiebabie] 22/5/2015 07:22

A good RNS from LGO, this morning.

[jamesiebabie] 21/5/2015 20:33

motr - I suspect TXP will contribute as I believe it is part of the minimum obligations for the Ortoire block; the difficult bit is what other services they use.

[mark of the rushes] 21/5/2015 20:24

Hi Dalesman/Jamesie,

I recall reading, before the Arkex survey took place, that other than MOEEA, LGO and Petrotrin, nobody else had contributed to the cost but that nevertheless they would be entitled to the data flown over their licences. LGO ie.Neil Ritson were hoping that, on seeing the data, they would be good eggs and make a financial contribution as a good neighbour would.

[jamesiebabie] 21/5/2015 20:15

Done - thank you.

[dalesman] 21/5/2015 19:48

Hi Jamsie

I think the cost is around $900,000

[jamesiebabie] 21/5/2015 19:10

That was my question; I suspect payment will be required. I have also highlighted to TXP that Arkex carry out integration of 3D siesmic with the FTG to make it even more powerful; as I have highlighted before, TXP have been obtaining quite a bit recently, so combining the two would be interesting.

[dalesman] 21/5/2015 18:22

Jamsiebabie

Why are they entitled to it when they haven't paid a penny towards it?

Just interested.

[jamesiebabie] 21/5/2015 17:30

Dalesman - they are entitled to a copy and seeing it next week in Houston, fyi.

[dalesman] 21/5/2015 07:32

Just had it confirmed that Touchstone did not subscribe to the FTG Survey although they may do so following the conference.

[jamesiebabie] 21/5/2015 06:24

Thanks Phil, interesting times. I have asked TXP about what they did, the last I had from them was this a few weeks ago.

"LGO turned over control of the Aeromag study to ARKex (the acquisition company) about six months ago. The overflights and data acquisition was completed in March and, as of my update this morning, the data processing should be done within the next week. I am hoping that we get to see some data over our properties in the very near future. ."

[dalesman] 21/5/2015 00:35

Hi James and Lazerus

as promised here is the feedback from Speculator on the FULL TENSOR SURVEY conference held in Trinidad today

FTG Survey Today 22:47

As we already know, the FTG survey is a very useful tool to significantly assist in refining existing geological/structural information gained initially from seismic surveys (2D and 3D) and also from well data (from cuttings, logs, cores etc.).

Because o the audience, today’s presentation was a generic one without much detailed specific information on areas of interest to us. However the presenter could not resist eventually putting up a couple of quick slides on Goudron and then the South West Peninsula. It is very technical of course and all I can really say is that the FTG data is going to greatly assist LGO in pinpointing specific areas of the various fields where we have the highest chance of success with future drills.

The area to the Eastern boundary of Goudron, and almost the entire Southern Coast of the SWP were particularly attractive (apparently). This clearly vindicates Krishna Persad’s geochemical survey conclusions from Monday’s session but I expect further analysis and interpretation is required.

The ArKEX FTG survey of Trinidad took 33 days to fly over 11,866 linear kilometres at a cost of just over $2 mil. Total coverage was 5,724 square kilometres. It is thought that all the other interested parties who have stayed on the sidelines (financially) up to now, will soon start to see the value of the information and purchase licenses accordingly.

Initial processing was completed May 15th (last Friday). Thursday 21st May is the release date for the final data package to the survey sponsors - Ministry of Energy, Petrotrin and of course LGO. I guess the really exciting work starts tomorrow.

[lazarus2010] 20/5/2015 08:19

no problem Phil, as a shareholder of both companies it's great to hear the different strengths and weaknesses of both companies on a single bb! Of course on the LGO thread such a conversation would not be possible as it would get in the way of all the general chit-chat and slagging that goes on there ;-)

thanks

[jamesiebabie] 19/5/2015 22:45

sttg - TXP sit well with $40 WTI as the tax becomes zero!! TXP and the operators are better off!! It's a stupid system.

[jamesiebabie] 19/5/2015 22:35

Phil - it's fine! As I said, TXP are doing quite a bit of 3D at the moment with Petrotrin.

I know you were critical of TXP's presentation in Jan, but it was aimed at a certain audience [not investors] and they were not the only ones suggesting change. ALL operators are hit by the SPT where there is a marked drop off.

[senttothegallows] 19/5/2015 22:34

JB

How does TXP sit with your forecast of $40wti spouted on the Empyrean energy board. TBH I am very uncomfortable with your post so thought it best to share with your followers?

[dalesman] 19/5/2015 22:06

Now that would be good news and I await that particular development with much interest - PLEASE keep me up to date.

I apologise for hijacking your board but the similarity between the companies, the environment in which they work and the ability as you say to learn from each other is a very good aspect of operating in Trinidad.

Horizontals should work well. Fracing has been carried out for many decades in Trinidad so they are experienced in this technique.

Tell me to bog off if I am dominating your board!

Kind regards

Phil

[jamesiebabie] 19/5/2015 21:55

Phil - TXP are doing the same, more infill and the interesting bit later this year depending on the new rigs, TXP want to do some horizontal drilling using their expertise from Canada.

TXP's older presentations show the expected horizontal drill locations. :0)

[dalesman] 19/5/2015 21:42

Not a fan of water flood schemes - one is planned for Goudron after the infill programme but that will thankfully be delayed as the infill programme is now set to drill many more wells than was first envisaged.

Again from the conference:

Speculator

Geochemical Analyses of Oils from Goudron Field

Oil samples from 13 wells in the Goudron field, plus 5 side cores from new wells reveal evaporative fractionation and biodegradation of the reservoired oils.

Evaporative fractionation is a process where only the lighter ends of the original oil separate and migrate into shallower reservoirs (e.g. Gros Morne/Cruse around 3’000' and Goudron Sandstones as shallow as 500’+). They are termed evaporative condensates. The heavier waxier oil is left behind as residual oil (sub 4,000’ in Lower Cruse and deeper 5,000'+ Karamath sands) in the source rock.

Biodegraded oil is oil where the lighter fractions have been consumed by bacteria introduced in groundwater along fault lines.

The majority of oils produced from Goudron have high API in the range 38-45 and are both fractionated and biodegraded.

The premise was that the lower oils from the C-sands (GM and Cruse) would be residual heavier oils and the higher oils from the GS would be lighter

However, the geochemical analysis of the various oils using high resolution gas chromatography revealed the following:

High API (lighter) oils in the lower C-sand reservoirs are evaporative condensates which have migrated from deeper, untapped sources and indicates the high probability of heavier residual oils even lower down (below 4’000’+). This feature is predominant on the Western side of the Goudron field. Deeper exploratory drilling is required to prove up this conclusion.

Heavier biodegraded oils found in shallower wells suggests that the lighter ends may have migrated to a nearby, as yet untapped reservoir. This is predominant in the Central part of the Goudron filed. “Pool extension” wells are required to find the nearby evaporative condensates derived from these residual oils which are likely to be shallow. Other fields in the country have a very high success rate in identifying and developing these nearby pool extensions. Surface oil seeps can reveal potential drill locations.

In Summary there is great further potential for production and exploratory drilling in Goudron. There is a reason the field was named “Goudron”; in the first place.

There was also a section on the potential of deeper unconventional (horizontal plus fracking) wells to target about 1 billion barrels STOOIP in the nearby SE area of Trinidad but this is outside LGO's current license area.

Here is my follow up post

Hi Speculator

That was an excellent post and holds out great potential for the future.

From what you are saying we have the possibility of multiple stacked reservoirs still to be tapped, with the Goudron and Lower Cruz sands only being the tip of the proverbial iceberg.

That makes absolute sense to me as I have always wondered why the API at Goudron - 40+ - was higher than experienced elsewhere on the island.

If the lab based analysis is identifying these two reservoirs as fractionated condensates then there must indeed be heavier oil sitting below the Lower Cruz sands.

As you say, that oil will not be light, nothing like the 40 API oil we currently produce (which so good it almost doesn't need refining: 0) - but heavy oil in the 12 - 18 API range has an economic value and perhaps there will be some pockets or pools of medium quality oil in the 23- 36 API range still to be discovered.

The presence of more stacked reservoirs means the life of the field will be extended.

If the Goudron c-sands are in communication with lower, heavier oil filled formations, as they must be if fractionated condensates are appearing in the upper reservoirs, I wonder what implications this may have for the water flood initiative? Any insight gratefully received.

Particularly if the seal between the lower heavy oil bearing strata is broken allowing easy communication of the lighter oil elements to condense / migrate upwards to the Goudron / c-sand formations. Both of these must have a top seal because the migration up to the surface over time appears to have been minimal.

Whatever the explanation it seems that we have more targets at Goudron than was first thought and the upside just gets better.

Many thanks again for your excellent post, it certainly highlights the increasing potential to LGO Energy of the Goudron concession. What's good for LGO Energy is good for us!

Kind regards

Phil

Im sure the same should be true for Ortoire.

[jamesiebabie] 19/5/2015 21:28

Phil - I know TXP are in touch with LGO; TXP are the operators of Icacos, so they have interest in what ids in the deep, but it maybe cheaper to watch and learn from others.

They are watching RRL and their waterflood, I understand there are issues about getting water on a full development level, so solutions are being looked at.

[dalesman] 19/5/2015 21:24

Many thanks for that bit of info much appreciated.

[dalesman] 19/5/2015 21:22

There is also one rig in Trinidad capable of drilling down to 15000 ft so Cedros could be drilled fairly soon if the BOD of LGO Energy decide the time is right. I hope they put off that decision until the Goudron drilling campaign is underway and new money is flowing in. By the way I'm using 30% first year decline on ordinary wells and 60% on the very gassy wells one of which produced in excess of 6000 bopd and was choked back to 1000bopd and I expect that it will have declined to around 400 now. The initial burst however delivered a big boost to the bank account of 40+ API light oil.

Maybe Touchstone would like to farm-in to the first deep drilled in the SWP for many a year reducing risk for all.

Kind regards

Phil