Touchstone Exploration Inc T.TXP

UK Investor show

[Proselenes]

From those who attended it seems :

Coho on track.

Casca EIA should be signed off soon.

No fund raising, either by new equity or new debt.

Going to sit and wait for cash to pile up.

Royston sidetrack looking like October spuid date.

So just a case of waiting some months for cash to build up, couple of Coora wells perhaps, and then Royston sidetrack October spud.

2023 will be busy, 2022 a bit quiet over the next 5 months.

[stanley]

Lurk & Learns + Proselenes: Proselenes: Thanks for the post. RE"Casca EIA should be signed off soon." What is your current thinking wrt EIA being a possible trigger for a possible (my words) ?"take under"?? Cheers Stanley

[moric122]

I haven't seen the presentation yet. But did Paul specifically say no debt expansion? I ask as Paul has in the past suggested that he doesn't mind spending debt dollars on development activities. It makes sense to me that he'd be willing to drill cascadura development wells with debt as that would be on the basis that cascadura is producing.  Anyway plenty of time to see what

[Margin321]

thanks moric - here for the longer term as well. Since 2013. Love my PBEGF shares that still have the ghost of Petrobank in their ticker symbol.

[Margin321]

Hey Pro, thanks.  But you are overlooking one thing. They have a drilling committment of 120 days for 2022.  TXP cannot just wait 5 months and then drill a well or two. They will pay for the rig whether they use it or not.  120 drilling days with a rig like Star Valley rig should be 5-10 wells AT THE LEAST.  Why not Coora times two, the one Coho development well which adds

[Proselenes]

2 Coora wells, then Royston sidetrack. Will use up say 90 days, I think they would rather "move" 30 days into 2023 and have 150 days in 2023 than run the risk of cash issues in 2022.

[Margin321]

2 Coora wells should take 20 days.  And Royston ST should not be more than 30 days. If they "move" 30 days into 2023 then they have to pay for 120 days in 2022 and 150 days in 2023. I can't see how that really helps the cash situation.

[Proselenes]

Cash is tight until Cascadura comes on line. First debt repayment is September. Current "free cash" is around 4 million US$. 2 Coora wells plus surface facilities etc... will use up 3m of that.  When Coho gets on line things will be better, but they will need to wait until October before they have enough cash spare to safely drill Royston sidetrack. Once Cascadura is online then

[Margin321]

If they drill the two Coora wells and then shut down again while waiting for Cascadura cash flow to start, then they have not delivered the promise of a continuous (one rig) drilling program that is supposed to start when  drilling recommences. On the other hand if they wait and wait, they are peeing away money paying for totally unproductive 120 days of drilling time that they have comitted