Touchstone Exploration Inc T.TXP

The last Independent reserves evaluation was as of

[Goaweigh]

June 30, 2020 so if we follow the same time line for 2021 our new evaluation should include Cascadura ST1/ Deep and Chinook and maybe even Royston but that may be wishful thinking.
If they give us 3 TCF recoverable for just the 2 C's that should work out to roughly
US $ 5,000,000,000 Net cash to TXP over the life of those two zones and if it takes 20 years to empty those that's US $ 250,000,000 per year.

So how will analysts value that ?

There seems to be a rule of thumb that suggests US $ 1 Billion per 1 TCF but that seems a bit high.
Then there's a multiple of future cash flow so at 4 times that's US $ 1 Billion or C $ 1.27 Billion
or about $ 6.00 per share which seems a bit low.

Whatever it is it's got to be much much higher than our current share price and June isn't that far off for a double or triple from here.
And then there's Royston and Steelhead and and and

[Taffypalmer2014]

As far as the year end reserve report goes, I think that the 2 C's will only be assigned probable reserves for now, not proven yet until after they are tested. Thats OK though, the probable reserves will quickly be assigned proven by the market as soon as the test results come out later in Jan., Feb. and then a GLJ update will follow sometime in March or April.

[Goaweigh]

I'll take March or April over June no problem. Now what happens when we hit 700 feet of pay at Royston and it flows, would GLJ update the probable or proven to include that hit relatively quickly or would they do an update later on, in conjunction with our year end, December for instance ?

[Taffypalmer2014]

Yes the only reason that the 2 C's can not be assigned proven non-producing reserves and only probable is beacause they have not been tested by year-end. As soon as we get a well test to show the well produces gas and not water or uneconomic flow rates, GLJ will re classify the reserves to proven non-producing and TXP will ask for a reserve report sometime soon after the test results are known

[Goaweigh]

Ok, got that and Thanks, so once we flow the 2 C's those can be upgraded and I presume that will be done in a timely manner. And the same with Royston, we flow it and GLJ will proceed with their evaluation right away. In other words these are performance driven reports, they aren't calandar driven, so when we make a discovery that's deemed material and it flows, we should get an