Touchstone Exploration Inc T.TXP

Don’t take share price drop personally

[Margin321]

Market has decided that company has to show some ramp in production and revenues. The delay does not mean that TXP cannot do that, just means that TXP has not done that yet. 

Meanwhile TXP cannot go BK because they have no debt. Don’t forget how important that is. They have a little cash coming in from legacy wells. As Paul says repeatedly, that pays the bills. They have cash on hand to drill Royston and set up their share of production facilities at Cascadura. They may add some debt for development wells at Cascadura. But they won’t do that until the production (and cash flow) from the first two Cascadura wells is up and running. They won’t start the second phase of exploration until they are generating the cash to drill Steelhead, Kraken, and Guabine.  

Obviously if Royston is a monster discovery that will be excellent. And it will take some time and money to get it on production. But the NGC has to fund the gas pipeline right to the site. TXP will have to fund facilities to 

 trip out liquids and store/transport those. Cost will depend on how wet the gas is. 

Anyway where I have been burned before in investing in small O and P companies has always involved some problem with debt. So it is quite beautiful that TXP has none.

[Margin321]

I thought I might expand my comments on debt. Anyway where I have been burned before in investing in small O and P companies has always involved some problem with debt. So it is quite beautiful that TXP has none. One of the places I was burned was Lightstream (LTS) which went belly up due to its bank debt. It was run by John Wright, Touchstone COB. Somewhat improbable he was still running it

[Kadiddelhopper]

What are your feelings about Wright in the Touchstone Executive  line-up? How and why would Baay countenance such a connection? Curious as I have considered but not acted on Wrights other venture presently in Brazil.

[Margin321]

I think Mr. Wright is an experienced and pretty skilled executive. Certainly the deal that formed TXP would not have come together without him. He kept some cash in the Petrobank shell after the various spin offs and that was used to form the present company.  Paul has been pretty much in charge as CEO (I really like him) and Mr. Wright  has been more of a supporting character. I would

[Kadiddelhopper]

Thx Margin.. I managed an exit from LTS in Sept  2014 with an overall gain of a paltry $300...that was just the begiining of the misery years.  Wann't aware of the personalities at the time, , but when you mentionned Lightstream, I heard bells going off in my noggin.... Treading ever so carefully now!

[Margin321]

My loss in Lightstream was huge. I still have a touch of PTSD that kicks in whenever there is an RNS showing Mr. Wright exercising some TXP option grants.

[Margin321]

Alvopetrol is another company that dates back to the break up of Petrobank but through the lineage of the apetrominerales piece that was also spun off. I did make some money from that. It is still run by Cory Rutan (not sure of spelling), another associate of Wright from that time. They were looking for oil, have found some tight gas, produce under 10,000 BOE. Total size of company  less than

[Kadiddelhopper]

That's the name, I was trying to recall..thanks for fleshing it out for me...you are a fount of information and I  for one, appreciate the input...  Sticking with TXP :>)

[Margin321]

Good choice!  I wasn't clear in my wording. I made some money by selling the Petrominerales shares I got when they were spun off. I never made money in Alvopetrol. I followed them out of interest because of my big (for me) investment in petrobank, but I never owned alvopetrol shares. I did get the first part of my TXP shares directly from the purchase of TXP precursor by the petrobank

[Margin321]

AND more importantly..... don't know where the word abandoned came from. Sorry. 

[Kadiddelhopper]

how about ...set aside ? does that work or sound more appropriate? Watching Erinc Nuttall on the BNN right now...hoping someone phones in and asks about his 4 million shares of TXP he acquired in his Ninepoint Fund.

[Samsam17]

Just called for you!!

[Kadiddelhopper]

Good job Samsam. ! Nuttal, didn't spend much time on Touchstone, probably a bit annoyed with it like the rest of us!  Interesting he said it would never be a 10% holding in his Fund...but maybe that's so they can avoid the Insiders reporting requirements as someone else suggested.

[Kadiddelhopper]

Scratch that last bit about Insiders reporting requirements! After I thought about it, that bit made no sense!

[AUborealis]

It will be when they hit on Kraken!