Post by
Margin321 on Apr 29, 2021 2:50pm
Pro-Active Call
Interesting enough, though nothing really new except some details on the negotiations on the legacy leases.
1. More in front than behind is good way of looking at it.
2. Cascadura deep test was from a different sand than the two tests of Cascadurs 1-ST.
3. New cartoon of Ortoire block with a lot of new items.
4. Robust development plan for Cascadura involving new sites and development wells. To be permitted as one plan. Separator plant and new condensate line part of the plan.
5. Coho pipe sitting at well pad. Negotiating tie in details with NGC and Shell. May do an additional development well at Coho depending on hook-up plan. TXP ready to go. NGC does not want any risk of stranded gas - Shell has some of their own plans (not shared with Paul) for central block.
6. Ready to go at Royston - nothing new - a little later maybe than we had planned.
7. Will study Chinook for 60 days. Maybe two deveopment wells uptick. Did mention that they vented gas during drilling (hence flare that was reported).
8. New prospect marked right south of Chinook - not discussed
9. Lease negotions on legacy land done for 10 more years. Better royalty, tax break on oil price to $75 over previous tax, very economic at $65 oil.
10. New rig they plan to use for 4 or more legacy wells - to break it in and complete drilling obligation there. Then it will move to Ortoire and drill there for next 3-5 years. Don't know when it will arrive - June or September?
11. Highly committed to no need for new capital. Fully funded through first gas, no matter when that comes. No debt. 20 million in cash. Royston will cost $5 million.
12. A lot happening. There may be opportunity to continue to build position at these prices for at least several months (my take).
Comment by
jake1444 on Apr 29, 2021 3:22pm
Nice summary Margin321. I watched a bit but had to work. Can we access a replay anywhere?
Comment by
Margin321 on Apr 29, 2021 3:31pm
If you search "touchstone exploration" on You Tube, the proactive calls all come up. It takes a while though. I think they review them before they post them.