Touchstone Exploration Inc T.TXP

Natural Gas Prices

[Taffypalmer2014]

Now that NG prices are skyrocketting, there must be a provision in the NGC contract to adjust the $2.50 contract price. Maybe not right away but future adjustments to the contract.???

Looks like NGC has signed a pretty good contract with hindsight being 20/20

[Margin321]

Can be reviewed in 5 years (now 4 1/2). That is plenty of margin for TXP. Plus there will be 5000 bopd of liquids which do benefit from higher oil prices.  And maybe the higher gas prices (market) will motivate Energy Ministry to really push the EIA process and will motivate NGC to get the or part of the construction done quickly too. 

[Margin321]

With the current contract price the have profit after taxes and royalties and expenses of about US $6 million per 10 mmcf/day.  So if Cascadura once all development wells are in place will produce 200 mmcf/day which will give them $120 million a year in profit. PLUS the profit on 5000 bpd of liquids which are not included in the contract.  Remeber that the TOTAL production last quarter

[WCWiteration3]

It all comes back to no sales. let me explain it to you few dimmers.. Baay has never address sales.. no volume, and price. although he did say it was in that $2.50 area and would NOT suprise anyone, that was that last gas contract really in Trinaida, a couple years back... a few recent ones with one bigger deal.. and non were supplied by TXP now,, if gas sales were as simple there is in Camada.