Touchstone Exploration Inc T.TXP

gas is sold @ $2.50ish

[1geoguy]

I read where Baay stated that price was close to $2.50, so no surprises. Margin, you say NGC takes raw gas for $2.50 and then it is their gas?  They need to find the buyer/ That is strange, I never seen such a deal, in Canada the producers find a buyer, it is not the  middle man.  The deal has never been fully disclosed, it is held tight, little deatils revealed

But I believe you margin, you are adamant, and despite that you are dead wrong about me being not me, I looked and sure as hell I am me and not someone you think about.

still, in the end it is up to NGC to find that buyer, NGC pays $2.50 for all gas from ths block, yes the deal has price options after 5 years at $2.50.  Very little detail about that deal, is is held close.  

Too bad the lid is on at $2.50 per Mmcfd, that is half current US prices and a fraction of world prices for LNG.. so low in fact, it should be easy to sell all the gas at that price, the arbitrage beween $2.50 and nearing $25 in some countries is there, someone will make a lot.  being so, it sure be strange it takes years to sell gas at $2.50 that should take an hour, not years..

               While the gas is characterized as liquids rich, indeed it would be such but  that is a low threshold.  The reserve report says they might have 10 million barrels, pre-royston of course. The decline in liquids production from these wells will  be extreme..  Wells that come on at 700-1000 bopd end Y1 producing maybe 200.that is the experience in the Montney and I suspect gas being gas those numbers will hold, on the average.  Little to be gained from TXP building a seperation unit, then again having a deal at $2.50 is so low they would like that extra bit of cash flow.  I know somone will say 900 bopd makes it very attractive, well flish liquids from the stream falls of quickly. it would be better to sell the gas as rich with higher btu content and get an extra price. as I said that deal is opaque and looks to have a very bad price


 Mother nature has been generous here, this has a lot of gas in this reservoir.  again 2 sheets to produce from and with the big krakken prospect just below the current focus at royston, drilling the next well should be aimed at krakken with the two producable sheets above making it a free shot at glory.  Problem there being, having a rig capable of 12000 feet thru high pressure sheets 500' feet thick.  A cinch with modern rigs. 

, it seems also strange not knowing if they are drilling thru 300 feet of gas pay twice in the same hole.  maybe the new drig will have gas detectors.  Seriously, after mistaking chinook for a winner one would think Baay would not want to look the fool again, and maybe get sued, announcing a great discovery and doing an equity raise on that false report.  PO'd a lot of investors with that bit of stupidity

[Margin321]

Glad you are you and hope you continue to contribute -you are definitely not WC - just it was a brand new handle, your earlier post had a hint if his style, and he has done this before. I have a few thoughts about your post and I'll read read it through again and think about it before I reply. Again good to have a lot of input and glad you jumped in here. It is my  highest conviction

[Margin321]

Trindad is different.  NGC is aggregator of most of the gas on island. They sell it to the three electric power producers (all run natural gas plants only), to a huge pertochemical industry, and to LNG trains.   They run the main pipelines and they act as a mid-stream in Canada or US, building collecing system right to well heads.  In Canada the mid-stream often pays for gas at

[Davidblackgreen]

Margin321 I "borrowed" your Chinook comments and posted on ADVFN in the U.K. giving you full credit of course.

[Margin321]

That is perfectly fine. Feel free to use anything that you like, except when I am confused about something. I am happy about Royston and eager for full test results. But there are other areas being underestimated including Cascadura and possibly also Chinook. That first Chinook up dip well will also be an exciting well when they get around to drilling it. As will the individual Cascadura

[1geoguy]

to correct you, in Canada the producer indeed sells to a  end custumer, the pipeline owner, Enbriddge, does not find the end user at all.  it would be Toremailne selling 100Mmcfd for a 3 year term to Indiana electric.. Enbridge, the pipeline company just has gas lines to operate, nothing about  finding sales for producers.

[Margin321]

Do they sell it for a fixed price for three years to Indiana electric? Then they pay a toll to Enbridge. How is that different than selling to NGC for a fixed price that covers both.  I know how it works with some of the companies in North Dakota and they do not typically find the end users. Some of the midstream companies have significant marketing divisions. They act as aggregators and