Touchstone Exploration Share Discussion Threads

[pro_s2009] 22/7/2021 10:47

PTAL is only really development drilling of a very well known geology. TXP Ortoire is pure exploration and so high risk.

The TXP drilling of four oil wells in the South West will be "similar" to PTAL wells, where you expect a good result and production - the risk is minimal.

The complexity of Ortoire is the reason Shell suffered all their problems nearly 50 years ago drilling there - much reduced risk now given technology, which has been borne out by TXP having a 100% record of discovering oil/gas with every well at Ortoire so far, and likely 4 wells that will all be on commercial production next year.

Coho-1 gas production
Casca-1 gas production with liquids
CascaDeep-1 gas production with liquids
Chinook-1 gas production (Cruse)

And hopefully a 5th, being Royston-1 also being on production by year end 2022.

[spangle93] 22/7/2021 10:42

For clarification
1. Baker Hughes and Schlumberger are integrated service providers - they don't own or operate land drill rigs. They provide service personnel to operate some or all of the clever parts of the well - directional drilling, logs/core, mud and cement, completion accessories, etc in conjunction with the rig contractor, which performs a more basic hoist and grind role.

2. They are direct competitors. Bringing both in could be seen as getting the unique experience of both, like using two estate agents with different markets to sell your home. However, the behaviour in practice is such that BHI won't openly share its learning in case SLB "acquires" that edge, or vice versa.

3. Unless operating under a management service contract (i.e. you outsource the running of the well), typically their role is to contribute their specialist knowledge of what the technology of their tool tells them with guys like Xavier and his team to help the TXP people modelling the geology and the reservoir. For instance, TXP has a problem, so they re-examine all their data. They say to BHI, we contracted your cementing services - do you have experience of this composition causing problems before and if so how was it remediated, or to SLB what can your electric logs tell us about the fluid composition, because standard interpretation of the logs was not borne out by the test.

[adon30] 22/7/2021 10:42

With the rig finally being set up, I was just after some pre Royston drill expectations....

Pro's detailed post 21204 detailed the Royston prospect.
The primary target being the 7a Karamat and Herrera sands.
Then two further potential targets of the 7bc sands and the sub thrust.

So what would people describe as a success?
Would for example it be a failure if the gas pressure was too high and TD was not achieved and we did not find out what was below the sub thrust?
What if a target is confirmed as oil and not gas?
Thoughts.....


P.S. Cheers pro for confirming Baker Hughes. I do remember it now but mind had gone blank.

[thommie] 22/7/2021 10:23

I was thinking the same since the chinook desaster as well... more expertise means less hickups and faster drilling which pays for itself. look at ptal, schlumberger is doing their drilling. not so many hickups at least at drilling wells since they started. but ofc hard to compare as their reservoir characteristics are known from similar fields around and the geology isnt anywhere near as complex like the ortoire one... I think they decided to do so as the bretana drills where you have to drill long horizontals under a river before going vertical being in a jungle are not that easy as usually.

[pro_s2009] 22/7/2021 10:22

Depends on their recommendation - they might have said use a different composition of mud, they might have said alter the balance......we dont know but its safe to assume the company are following the recommendations.

[worraps] 22/7/2021 10:08

In which case, would it not be worth the expense to get the likes of Baker Hughes and Schlumberger in for every drill until capabilities have been achieved via experience? Rather than go through another Chinook disaster? Importing capabilities in would pay for itself in the end?

[pro_s2009] 21/7/2021 22:03

Adon30..... They called in Baker Hughes and Schlumberger to investigate Chinook. There were rumours that the Barite in the drilling mud caused the issue, So they might be looking at different composition for the drilling mud and not using Barite......???

I don't think any well has ever been drilled underbalanced in Trinidad so capabilities might not be on the island....

[worraps] 21/7/2021 19:43

Canada looking perky, $1.55 cad /90p. In fact, there seems to be a whole different mood and sentiment developing in recent days. Nice to see. Perhaps there are shorts needing to close, based on the returned positive sentiment. It all helps.

[adon30] 21/7/2021 19:06

DB, I bet they are pricey wells if you leave half your kit still in them.

What was Royston costing again? Was it $7.5m? That’ll include the road, pad and 60 days drill though I assume.
The costs will be dwarfed by the find (fingers crossed).

Mud weight will be important on this one. Can someone confirm/ remind me did something happen with regards mud weight at the chinook drill that caused a problem? My brains melted with the heat so can’t recall.

[davidblack] 21/7/2021 18:20

Yep the OL2 pad which significantly helps with permissions as no “Jungle” is disturbed.

It won’t be a twin though, it just starts from the same place.

Shell OL-2 was 1959 so hopefully they will have learned a bit in 60 years?

Also interesting that OL-3 just south of Steelhead was drilled in 1960. Clearly Shell liked what they could see as they did OL-4 in 1965 per XM.

They were all pricy wells at the time so Shell must have thought there was a prize lurking beneath.

[adon30] 21/7/2021 18:20

Thanks 1domus confirmed what I thought

At least the T&T construction industry won’t need to build a new road to get to the steelhead site then, otherwise I’d pencil that one in for 2024

[spangle93] 21/7/2021 17:48

Xavier Moonan on LinkedIn has also recently posted some images about the 2D seismic gathering campaign, which are different to the twitter feed

I'm not gifted to include the images here, but I don't suppose there are too many Xavier Moonan's on LinkedIn

[thebull8] 21/7/2021 17:35

Nice little rally before close....maybe indicative to a nice operational update RNS tomorrow morning. We all love a good news Thursday RNS.

[1domus] 21/7/2021 17:17

Yes Steelhead will be drilled from OL2 pad

Yes Cas B and Cas C are sites that will be development well centres..likely 4 wells on each

BW9 is an old wellsite that may be used to drill updip Chinook in the future.

[adon30] 21/7/2021 15:13

So will steelhead be from the old OL2 pad?

Just hope that txp have none of the issues that shell had drilling this area and probably why the Canadian heavy rig has been bought in.

The CAS B and CAS C locations marked on the map are they proposed Txp locations or other old drills?
Also a BW 9 marked. is that balata west 9 location?

[che7win] 21/7/2021 15:07

Oil rocketing today

[che7win] 21/7/2021 13:21

Xavier posts very interesting, exciting times....

[pro_s2009] 21/7/2021 13:07

Looks like the new seismic has helped again confirm the Monster, the Krakken......

[pro_s2009] 21/7/2021 13:01

Excellent thread (series of tweets) by Xavier on Twitter just now.



Worth a read.

[pro_s2009] 21/7/2021 11:19

Yes buffy, I should have said "flows at levels which would be commercial, if the resource size is large enough to offer a decent ROI for the development costs", as opposed to flows commercially.

Anyway, they will not know the size of the Cruse until they pull the pressure recorders, if thats what they are doing, and so, they may not be able to comment on the Cruse until such time as the recorders are out, the pressures known, the flow rate known and the size of the structure known. At that time it may, or may not, be deemed commercial - and at that time - if it is commercial - it will have a bearing on the value of the company - being increased - and so an RNS will have to come out. That might be 4 weeks away.

Likewise, if its not commercial, it will have no bearing on the companies valuation (as the Cruse is valued at zero, and so, no RNS is required)

[buffythebuffoon] 21/7/2021 11:03

Hi Pro,

A very good summary of the early to mid cycle of a hydrocarbon exploration company (or at least a successful one). You missed off the next stage which sees a plateau in the share price of varying length and then the decline. In the case of TXP, as you rightly say, there are so many targets that the climb will likely be prolonged. Well, until we sell it anyway.

The only thing I’d comment on is your statement ‘ We may see this with the Cruse news.....there would be perhaps no point saying it "flows commercially" if later they said "pressure build up data suggests its too small to commercialize".̵7;

You only announce commerciality once! OK, in the case of developments going wrong, such as at Seven Heads, you are effectively revising the commerciality of the project, but at the pre-production stage, you don’t and shouldn’t see the mistaken announcement of commerciality. In an honest company at least.

By the way, don’t feel sorry for Paul Baay. He was totally in the wrong to scream DISCOVERY at Chinook. Ok, he was, as it turns out correct, but not how he described it.

The big question that most seemed to have relegated to the mental filing cabinet, is at what stage we sell the company. It’s never going to be the right time for some, as there are always going to be some potentially large targets to go for. Many people don’t seem to see it from a buyers side though. There has to be plenty of meat left on the bone.

Before another wag beats me to it...I’m obviously not talking about dinosaur meat. That’s how we’ve got the hydrocarbons in the first place.

Hopefully I haven’t opened a can of worms with the geologists.. 🤣

Buffy

[davidblack] 21/7/2021 10:34

Goldmine it was being moved on Monday so it should be at the site this morning but that’s not confirmed by having sight of it on the location. It’s a public road so there are no issues.

If I get a firm confirmation I will IM you.

[lauders] 21/7/2021 10:13

There is a question-mark after that text TGM. So unless it has just been edited it would appear to be obvious.

Whatever, I have decided to add here today. I am hoping that the new "reserved" reporting from TXP will have its benefits as we move forwards and we are due some movement in the price. I just hope it is upwards! GLA.

[the_gold_mine] 21/7/2021 10:10

DB:- is your statement "Royston drill now at the site?" a question or a statement? If so where is your source.

[davidblack] 21/7/2021 09:35

Royston drill now at the site?

Once set up 60 plus days to 11,500, so say 30th of September at TD.

This is the first drill hole of 2021.

The new rig will be there shortly warming up on some near surface targets, so this may be the last hole being drilled with the old rig?