Touchstone Exploration Inc T.TXP

Important positives

[Margin321]

Today 12:21

Reminder - there are some important differences between TXP and other small EP companies about to ramp production.

1. Zero debt (really big item).

2. Wells are cheaper - no horizontals and fracking like shale wells

3. Wells are tapping conventional reservoirs in pressurized sands that will produce for many years, not peter off in 18 months like shale wells. 

4. Guaranteed price for all the gas at very profitable rate. Upside potential for the liquids. 

5. timing of cash flow ramp will easily cover all the costs of 2 rig drilling program. No need for dilutive equity raises or for any borrowing. 

There are not many if any oil and gas companies at this stage of development that have all these positives.

[Chreca1]

And a nice difference to the big entities out there hunting large gas is that TXP is onshore, all the really large wildcat gas drills these days are offshore. 1tcf+ kind of wells onshore (Royston and  siblings) very rare these days, and in an already proven basin. Then add 80%WI etc and  TXP is a rare beast in other words, where else can you invest in a small cap with these upcoming

[mjh9413]

Maybe I've been asleep at the wheel but one thing in NR is that they have signed the Nat Gas contract. With construction of COHO ongoing also confirmed I guess we can bear another qtr of non-Ortoire results.