Malcys take on things....... FWIW....Malcys take on things is below after the link. I would add, that Royston Deep-1 could be a very lucrative producer with high flow rates (taking into account what Malcys highlights below), I will be happy to see them drill this in the summer and get it directly on to production via EWT - and then Cascadura online. Krakken-1 can wait until Cascadura is online and producing (as drilling Krakken-1 means Royston Deep-1 EWT production would have to stop while its drilled).
So a clear path should be :
Royston-1 EWT continues.
When ready, stop Royston-1 EWT and drill Royston Deep-1.
Put Royston-1 and Royston Deep-1 on to EWT. This gives good cash flow waiting for Casca.
Run them on EWT until Cascadura is online, where Casca takes over being the main cash generator.
Then stop EWT and drill Krakken-1.
Then put Royston-1 and Royston Deep-1 and Krakken-1 all on EWT again.
https://www.malcysblog.com/2022/03/oil-price-zephyr-touchstone/ ......This is a very substantial and detailed report as one would expect from a company that has been as been as busy as Touchstone has been recently. I like the focus on the 200 plus million bbls in place at Royston with TXP only having booked a small portion based on the single well drilled so far.
Also it should be borne in mind that the operations update that shows production rates from Royston and the two gas projects that now have a clear path to production which I suggest should add significantly to long term value especially given the flow rates at here but the 675 bbls/d is only from 120 ft of the 1500 ft section.
The shares have remained unchanged on the news which given that oil is where it is today is clearly an under rating of the company of a substantial nature. When all the numbers are out for the company I am convinced that there will be huge reserves which will make the current share price look ridiculously low and investment at these levels will prove to have been a very wise move. ............