Royston - getting to know the "beast".
And for some weekend reading, as Royston-1 approaches, lets get to know Royston a bit better.
My comments...... the current "Primary" target of gas is the upper 7a Karamat and Herrera sands. This represents potentially a lot of gas.
BUT
The old Shell well never entered into the deeper 7bc sands, they stopped drilling before going into the 7bc. Royston-1 will endeavor to go into the 7bc and see if that holds gas or oil. Massive upside potential.
BUT THATS NOT ALL
They will, all being well with the 7bc and no high pressure gas (a good thing but it might stop drilling if pressures too high), attempt to go into the Sub-Thrust. Target depth is currently poking into the Sub Thrust to see if that has gas or oil and then a new TD may be set, if they get there, if the Sub Thrust looks promising, they will go deeper as far as the rig can handle safely.
So in summary, there is 1 Primary target and 2 potential upsides.
Primary Target - 700 feet of potential gas pay in the Upper 7a Karamat/Herrera.
Upside potential - Deeper Overthrust 7bc sands currently undrilled and untested. This is big, if the 7bc is gas or oil or wet gas, it makes Royston "super size" as the 7bc is laterally more extensive than the upper 7a. If it comes in, Royston might be a multi-TCF discovery.
Upside potential - Deeper Sub Thrust. Just what is in it ? Nobody knows. Water ? Oil ? Gas ? Wet gas ? Nothing ? Exciting if they can get that deep this time and poke into it.
The current seismic being done at Royston is nothing to do with the Royston-1 well. This new seismic is a license requirement, but also it is being done to choose the development/appraisal wells if Royston-1 is a discovery. It will also help in locating the well location for Krakken-1, the potential billion/s barrel well into the Cretaceous below Royston to be drilled in late 2022.
Royston is close to both gas and oil pipelines, and will be easy to tie production in. If Royston is a success then production expected in 12 to 16 months time - meaning year end 2022 might see 10 mmscf/day from Coho, 200 mmscf/day from Cascadura (plus liquids), 200 mmscf/day from Royston (plus any liquids) and 2000 barrels or more from the South West oilfields. EG.......a very large wall of cash piling into TXP.
Given TXP has proven, independently confirmed, flow tested "RESERVES" worth 150p a share, and you can buy in below that currently, and expose yourself to massive upside from Royston safe in the knowledge the proven reserves are there and not going anywhere.......its compelling. Whoever has placed that 9 million share short on TXP and so made the price so cheap and low....thank you for allowing me and others to buy more well below fair value of reserves.
Below is what Xavier wrote in February about Royston :
Xavier Moonan 9th Feb
ROYSTON
Touchstone Exploration is gearing up to tackle Royston-1, our 5th exploration well on the Ortoire Block, this time within the Gajram Forest
Royston-1 is planned to be drilled to 10,700 feet MD targeting at least the Overthrust Mid Miocene Karamat and Herrera turbidite sands within the WSW-ENE trending, SE verging, broad, gently folded, thrusted and subtly backthrusted CSKY anticline imaged on SBC 2D seismic data
This anticline sits buried beneath thick sealing deep water clays and successive deltaics within the heart of the Ortoire Syncline, and has remained undisturbed since the Mid Miocene
The Cretaceous Naparima Hill and Gautier source rock formations are within and have been within the wet gas window since the Pliocene
As such these geological elements suggests this prospect is ideally poised for a significant gas resource
In 1965, Shell drilled the Ortoire Lizard-4 (OL-4) well to a TD of 10382 feet, encountering approximately 700 feet of gas bearing 7a Karamat and Herrera sandstones. The well was TD'd before entering the regionally more developed and laterally extensive 7bc Herrera sandstones
The well will drill the Karamat and Herrera section previously drilled by OL-4 in a structurally favourable position and will be deepened to assess at least the Overthrusted 7bc Herreras
To minimize environmental impact, Royston-1 will spud on the OL-4 wellsite, and accessed via the resurfaced oilfield road
The Royston prospect occurs approximately 3km from active natural gas and oil pipelines which traverse the Ortoire Block