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Touchstone Exploration Inc T.TXP

Alternate Symbol(s):  PBEGF

Touchstone Exploration Inc. is a Canada-based company, which is engaged in the business of petroleum and natural gas exploration, development, acquisition and production. The Company is active in onshore properties located in the Republic of Trinidad and Tobago. It operates Trinidad-based upstream petroleum and natural gas activities under state exploration and production licenses with the Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI), Lease Operatorship Agreements (LOAs) with Heritage Petroleum Company Limited and private subsurface and surface leases with individual landowners. It is focused on onshore oil and natural gas properties located in southern Trinidad. With interests in approximately 145,000 net working interest acres of core exploration and development rights. Its core focus is on exploration and development on the Ortoire block and development production on its five onshore lease operatorship properties (CO-1, WD-4, WD-8, Fyzabad, and Balata East).


TSX:TXP - Post by User

Comment by Margin321on Sep 15, 2021 11:06am
145 Views
Post# 33861621

RE:Gas economics onshore Trinidad

RE:Gas economics onshore Trinidad
We have good handle on economics.(high level view)

For every 10 mmcf/day of naturall gas they sell under NGC contract, they have profits (clear after operating costs, taxes, royalties) of $6 million a year. 

Coho = 6 million a year

Cascadura at 40 mmcf/day = 24 million a year
Cascadura developed at 200 mmcf/day  = 120 million a year

Royston ??? = pencil in 300 mmcf/day fully developed = 180 million a year.

Then add liquids which trade separately at local market price. Cascadura when developed will have 5000 bpd,  Royston totally unknown if gas, if dry gas or wet gas.

Plus there will be $10 million a year or more from legacy shallow wells.

All that is plenty to be debt free, fund all the 10 year development plan on Ortoire block (2 rigs), and start to pay a dividend.  Any future discoveries just add to the cash coming in.

It has taken time and it will take more time, but I think it will play out that way.

Yet to come are Royston (but SOON), Coora Deep test, Cruse production strategy, Chinook updip wells, Steelhead, Guabine, Bass, KRAKEN, and about 10 other prospects on Ortoire block. TXP is early in this journey.
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