Touchstone Exploration Inc T.TXP

Chinook Prospect Size

[moric122]

Hey Espana, 

Do you have any sense for the prospect size of the Chinook target? 

From TXP's past presentations we know that the BW7 and the BW7X side track had 821 and 1,253 feet of net hydrocarbon pay respectively. An old 2018 presentation from TXP suggests Chinook is targeting a fault block of 628 acres. Would love to hear your views on potential resource here gas or oil.

Cheers,
Moric

[Wildcattter]

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[Espana]

Hi Moric12,  It goes without saying 1000' of pay over one section(640acres = 1 mileX1 mile) with decent porosity, hydrocarbon saturation and in the case of gas, high pressures, resource size will be huge. The trouble lies in the uncertainty of the numbers. 1000' of porous sand filled with hydrocarbon over a square mile with no intervening barriers Is stretching credibility. The net

[Wildcattter]

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[Goaweigh]

Wow, you answered that very pleasantly. I'm impressed. Now does anyone know how many wells we are allowed in 628 acres or is there a limit in T&T and how many would we need to optimize production. In Canada aren't we limited as to how many wells we're allowed to drill in one section ? Thanks

[moric122]

Haha thanks Espana, now I know you are geo!  I already tied my own noose with similar numbers a couple weeks back. The numbers are impressive for Chinook if we get anywhere close to the acres and height suggested. I have to say I find it odd that TXP has not provide any guidance to investors on pre-drill expectations since 2018ish. With 3D seismic, the Shell logs and some ideas of the

[Goaweigh]

Sorry to ask but you could you please take this one more step for me. The 7758 number, is that the number of barrels contained in 1 foot of pay per acre ? Further how about just giving us a teaser....maybe do the math for us on lets say one acre with 100 feet of pay and after that I should be able to multiply that by 628 acres and the other variables, 200 feet of pay, 300. Or maybe just define

[Wildcattter]

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[Wildcattter]

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[Espana]

Goaweigh,    There are 5.615 cubic feet in a barrel X 7758 = 43561 cubic feet in one acre one foot thick. You remember we used 43560 as the conversion to cubic feet for gas for one acre. One acre is 43560 square feet. The reason for the difference is that it is customary to express oil in barrels and gas in cubic feet Oil 7758 * Y(acres) * Z(feet pay) X .17(porosity) X .75 (1

[Davidblackgreen]

Well pencil in 600 feet on the depth.

[Goaweigh]

Firstly Thanks for doing this , I'm certain everyone appreciates it and if they're like me enjoy playing with numbers and speculating. Just to check my math I came up with 347 Billion CF Anyone ?

[moric122]

I am in the same ball park Goa. However I think we need better comment from TXP on the extent of the prospect. They moved significantly updip from the BW7 well for their Chinook drill, what did this result represent in their model? As they speak about beating pre-drill expectations. Cheers, Moric

[Goaweigh]

Thanks, I used 620 acres at 600 feet of pay but no idea if the aerial extent is that large or larger. For that matter I don't know how large our block is in this area. But one more question, I'm a bit surprised we aren't testing this well sooner than later and wonder why, do we need this rig to stay on sight to run the tests which would dely Casca 2 ? Couldn't we move this rig to

[Espana]

Moric122 Area might be the biggest unknown but remember we threw in numbers for porosity, water saturation, recovery, shrinkage...keep an ear out for any mention of these numbers as they could substantially alter the final resource number. Porosity/ permeability, grain size are seriously important number. Intervals of medium to coarse grained sand can make all the difference in terms of flow rates

[moric122]

Thanks Espana, excellent points. Worth noting that gas compression factor will likely be a very interesting variable as well, given all comment we have recieved are that this area is overpressured...  What has me excited is the view that TXP, Xavier et all, must have right now. 3D seismic and 2 logs one new and one old, 3 lenses of pay - 2 planned and 1 a surprise! I am sure TXP's going

[Espana]

I agree the gas compression factor is important. I believe I saw Touchstone using 337 for estimating the size of one of their prospects several years back but I can't seem to find the reference...or maybe I'm just making that up? I am not familiar enough with the formula nor would I have access to the data to calculate an accurate value. It involves compressibility, temperature, pressure

[Espana]

Goaweigh,     Your welcome. I'd say given the 600' pay number, you're in the ballpark but as you noted area is the big unknown. They will get a better handle on that with prolonged flows and shut-ins. Paul mentioned the sands will be tested in three intervals, perhaps meaning they are separate reservoirs with separate pressure regimes. This could complicate things in terms

[Goaweigh]

You expect ME to come across detailed maps ? Well OK, I'll try and I appreciate the confidence you have in me. LOL This stuff fascinates me so I could keep at it all day but I'll try to restrain myself with only one more. At Cascadura, if I have this right, they flow tested the well which was great and then they put down recorders to take various readings, pressure being an important one

[Espana]

Goaweigh,  I was thinking you may run across a slide or map that Touchstone or someone else puts out to show progression of the drilling program. Usually they put out diagrams with drill locations that are hundreds of meters across just for illustrative purposes. The smaller the dot relative to the map scale the better to measure distances.    Re. Locating barriers in a reservoir

[Goaweigh]

Back to reality for a moment. Thankyou for trying to explain this, yes it's very complicated but fascinating. The technology this industry has developed is quite amazing really, dropping a gizmo down a 10,000 foot hole and being able to tell how large a deposit is , is quite amazing. And siesmic too is amazing. As I've said before I've spent most of my investing life in the junior

[ratsnake220]

3 rd inning folks another year to get this up to $3.00