Monday trading in Canada and OTC in US will be interesting
Monday trading in Canada and US will be interesting. Market is closed in London Monday so there will be no overnight trading in London to set the tone for the Toronto and US OTC opening in the morning.
Events in the bigger world (economically and geopolitically) could set the tone of course, but energy sector seems pretty resilient for the short and intermediate time frame and TXP should participate as long as TXP starts to ramp production. Next few weeks should demonstrate that they are executing better. I can see three good things. 1. Coho on line. 2. Cascadura field development plan accepted. and 3. Firing up the Star Valley Rig and beginning a continuous drilling program.
Paul could talk about all of those in London in late May and he could lay out the drilling sequence for the next few months and give the rationale. It will start with two Coora wells. Then off to Royston pad but will they just do the Royston 1-ST or hopefully will they also drill Royston Deep and Kraken while they are there? Then hopefully back to drill Coho 2 which should be a quick win. Meanwhile the Cascadura B pad will be developed and they could hop to that new pad and drill four wells. If Casacdura B pad isn't ready there are other options like a few more development wells on legacy lands (maybe including a deep Hererra test there). Or they could knock off Steelhead and Guabine. Or they could do two Chinook up dip wells. At some time point (likely late 2023) Cascadura C pad will also be ready and there are four more development wells there. After that the development plans for the Royston field should be more clear - and for Kraken (god willing) and maybe for any discoveries on some of the other prospects they are drilling in the second exploration program including Steelhead, Guabine and Bass. Lots of steps to get to details and approvals for next field development plans after Cascadura. But once they get started that Star Valley rig has lots of work and will keep the flow of news going and hopefully set the stage to keep flow of oil and gas growing. Story is still intact, in my opinion.
There are challenges and there have been frustrating delays. But the story is intact. The geology is better than they expected.