Touchstone Exploration Inc T.TXP

I love this post by Mount Teide so I have to reprint it here

[Goaweigh]

Some comments from PB during the Proactive Presentation

Ortoire - " There are not many places in the world where you get 1500ft to 2,000ft of Turbidite section - we are right in the middle of the main fairway"

Ortoire - 2020/21 Drilling Programme

* Casca Deep - "Casca Deep is a very, very large structure sitting under Cascadura"

"It's a 40 day drill - hopefully we'll have a Christmas present for everybody by the middle of December" ( Uncharacteristically upbeat comment from PB)

* Cascadura - "3 to 4 development wells - even if Casca Deep does not work"

* Chinook - "multiple development wells, subject to successful testing, the discovery is bigger than what we were expecting" In answer to a question: "Yes. I would call Chinook 'World Class' "

* Royston Deep Drill - " has always been from day one the largest prospect on the bloc - it will offset an existing 1965 Shell well"

" We think Chinook has significantly derisked the Royston well - and has
very large potential reserves"

Beyond that - "We have 24 different Ortoire prospects. Casca Deep and Royston will be drills 4 and 5. Following that we've identified all these other inclines and sand bodies in the heart of the fairway (page 16 on the latest presentation) - with different horizons and sands which is setting up a very long exploration runway for us - 10 years"

The Chinook Drill and a potential connection between Casca Deep and Chinook
"The team made a call on Chinook when at the Terminal Depth to continue drilling as they had started to see hydrocarbons again.....so it looks like this - drilling the much larger deeper sheets - is going to be a really interesting opportunity for us"

"The Chinook drill is the first time that hydrocarbons have been found in the very, very lower sheet"

"There are two significances to this:

1 - "Its the first time a well has been drilled (On Ortoire) that deep (to over 10,000ft)"

2 - "We think that potentially the deep prospect at Casca and the deep zone at Chinook could be connected - this would give a prospect with a much greater aerial extent than what we see in the upper sheets, and really sets up a very big opportunity for us and for the country, if these lower sheets are also hydrocarbon bearing."

"Stand by on the Casca Deep drill its going to be very exciting"

Unquestionably, 2020 has been a completely transformational year for Touchstone Exploration( and many of its shareholders), yet incredibly, with each drill result, the potential of TXP's Ortoire Bloc's turbidite fairway sweet spot acreage suggests 2021 and beyond could prove even better.

[Wildcattter]

This post has been removed in accordance with Community Policy

[Goaweigh]

I only fall in love with my 10 baggers. I started buying VLE at .60 but you neglect to go back that far in my posting history. I started buying GBR at $ 1.17 but you neglect to mention that and I started buying TXP at .33 but you neglect to mention that and there are plenty of others. I don't love TXP just yet, it's only a 5 bagger for me thus far and still too early in our relationship

[Chreca1]

Sure that may be a good general advice, BUT sometimes the love is actually mutual and once you find such a soulmate you better hold on to he/she or in this case it. And if you're fundamental rule is to sell anything up just 300-400% no matter how bright the outlook is, you will never catch the 10+baggers consequently, right ? I will hold on to TXP as I truly believe it has a bright future

[Wildcattter]

This post has been removed in accordance with Community Policy

[Davidblackgreen]

Just what might be the fair value then? I am guessing TXP is at a 60%~70% discount to assets and that could be doubled with upside if Cascadura Deep in particular comes through. Does this mean the area then could be double decked? Oh and that mad "Fair value number" might be $11 according to my calculations. Who knows in the end what number might make sense but whatever it is

[Goaweigh]

I believe Cormark suggested $ 3.25 or thereabouts and that did take into consideration the possibility of Chinook being successful however they certainly didn't forsee just how successful it is nor that an enirely new zone would be discovered at depth so that projection is probably on the low side, maybe very low. We'll have news on the " Deep " before we have flow rates on

[Chreca1]

Well, seems Paul always has had a particular soft spot for the (relatively unexciting) development wells, check out this funny interaction between Paul and James Shipka at the 5:20-5:40 mark. I can almost read the thoughts at work inside the head of Mr Shipka there.LOL {^youtubevideo|(width)425|(height)264|(rel)False|(url)https://www.youtube.com/watch?v=s6Hs6Ty8N3M|(fs)True|(loop)False|(autoplay

[Chreca1]

Here we are 1½ years later on and still no restart in sight of Paul´s "we're still gonna do that development program" (four in 2019, and then 10-11/year). Well, please don't rush as "everybody's excited of those exploratory wells..." Indeed ! LOL

[Davidblackgreen]

Clearly oil economics this year hasn't helped and with Covid they probably are trying to shelter people to focus on Cascadura etc but has anyone ever looked at the idea there might be deeper targets below near surface production?

[Goaweigh]

I think I just did in my prior post. No doubt someone will ask the question, Why exactly are we going back to the West and drilling 100 barrel wells when we have 5000 barrel wells to drill in the fairway ? Deep drilling maybe ? Who knew drilling wells was just like golf, just stay in the dam fairway and you'll be ok.

[Chreca1]

Yes, there seems to be indentified deep targets on the western ("boring") fields, and I think Mr Moonan just confirmed this belief to someone on Twitter or somewhere recently.

[Goaweigh]

That's exciting. Thanks And TXP is now bucking the market trend today, that's a dam good sign.

[Davidblackgreen]

Well maybe not bucking but it slipped to no more than the London close so effectively not really down on Canadian trading!  The additional targets underneath the near surface western production are interesting and I guess can be added to the 20 plus list so far. But probably not time to get too excited as PB needs to find $100m plus to pay for the drills before we might get to see any

[Graceolivia]

David why the 100 millions before any money come in

[Davidblackgreen]

They have 20 plus high value targets as to whether they are modest Coho targets or triple decked Chinook ones who knows but PB could spend the next two years and $100m on 20 drills identified already before he needs to add any Western targets underneath the existing assets. To put it simply this seems to be a target rich environment! Mind you it's an oil island surrounded by gas so it

[Goaweigh]

Shhhhh, I think he's sleeping now. I'm just guessing but I think he's talking in terms of gross expenditures to drill all 20 targets @ $ 5 Million a piece. I think there are actually 24 targets now and the $ 5 Mill per well is just a guess too. I can't think of anything else that would cost us $ 100 Million. We should at least double our current cash flow once Coho is on line. And

[Davidblackgreen]

Goa correct $5m ish by 20 wells $100m as I am assuming a few Coho cheap $3m jobs along the way. As to equity funding say $20m at $2 post Cas Deep? Then $3 then $4 as the development unfolds? Just a humble suggestion. Good night all from the old world!

[nel12]

I asked him if it was possible that the western block could have large deposits below or to 10,000 feet like the Ortoire and his reply was =  Yes ! ==