Touchstone Exploration Inc T.TXP

Why is the head honcho only talking about 5-600 billioncf's

[drunk@noon]

with a potneital of only a trillion on the whole block IF royston comes through. I though with the sucess of chinook we would be at 5-600 billion. And at least 250 million for the casandra deep.
I,e I would thinik 800 billion would be a best estimate figufre by now. Is he being overly conservative or has the stockhouse and LSE BB been overly optimistic.
-any useful  input appreciated

[Proselenes]

The potential for the whole block is not 1 TCF. That is the potential for the currently being drilled prospects only (Coho/Casca/Chinook/Royston). There are 21 other known prospects to be pursued which are not included in that 1 TCF figure. There could be up to 9 TCF in the whole Oroire block. And yes, Royston could be around 500 BCF.

[spawny100]

Not sure about that Pro. I queried whether the 1tcf potential for Ortoire referred to current drill program or whole block. They confirmed to me that the 1tcf figure referred to the whole block. I don't believe that though and I think it's Paul's usual style of underpromise and overdeliver.

[Chreca1]

Well then I guess he misunderstood your question as 1 tcf for the potential of the whole block is not their believed potential I'm 100% sure of, given what they have found so far plus Royston and all the other 21 prosects plus more still unidentified prosepects would make all the other prospects look totally insignificant and why even bother drilling any more exploration after Royston then as

[Chreca1]

One more thing regarding their MO post-Royston, now we have one reason why they would not do more development drilling on the already discovereded pools (Coho,Casca, Chinook, see my mail from yesterday), but one more reason and I'm just thinking out loud here, could be that maybe deep inside Paul and the team think there's a good likelihood the suitors may start moving and acting sometime

[Goaweigh]

I think you're bang on there, now that we know we have a clear path to cash flow that is more than adequate to cover exploration and G&A longer term we'll get a lot more value creation from drilling new prospects and building reserves than we would get from drilling off the known reserves simply to increase cash flow. But still these guys are killing me, we have these teasers below

[Davidblackgreen]

Not sure what the fair value of this but I think pencilling in the $5 that Hydra have flagged doesn't sound unreasonable?   So with the stock at less than 50% of that Hydra $5 number talking up the prospects of Royston, Cascadura Deep or Chinook connecting is only likely to raise that $5 to say $8 or $10. That would simply widen the discount assuming the stock went to say $3? From

[Proselenes]

They can only quote what they are drilling.  Currently they are only drilling into Royston and so the total of Coho/Casca/Chinook/Rosyton is 1 TCF. They are not drilling any other wells (in current plans) and so in current plans the potential is limited to 1 TCF. Thats the way Paul works...........once he announces a new drilling programe then he will raise that 1 TCF to a higher figure