Touchstone Exploration Inc T.TXP

Company main value is it's Casc reserves and they should

[drunk@noon]

undergo a major drop due to the underperformance of the wells. This is the likely reason they have been scrambling to make aquisitions--which of course they have no money for.

[Tad]

Another way to look at it .... Touchstone has been investing in infrastruture the past two years before they can drill alot of holes.  With no processing capability prior to drilling wells to exploit the reserves, how would they be able to get the gas in the ground to market  in the first place ? They spent a bit of money on pipelines that run from Cascadura C Pad back down to the

[matt2018]

during your research Tad, did you happen to come across reason why the unaudited profits reported from the Central Block were $15.2M for year end 2023 but only $1.1M for Jan to Nov 2024 period? Could be many reasons why, just curious if you came across any?

[Tad]

Sorry, no I didn't. Could be an accounting thing, CAPEX, maintenance of the processing plant, expensing something else, or a possible write down by Shell. Shell has bigger things on their plate in Trinidad with recent Manatee announcement. They've wanted to part with Central Block for sometime now, maybe considering it too small for them to continue to carry. Production on Cenrtral Block

[matt2018]

understood Tad. It all sounds promising and a great opportunity for some synergies but the company has very little cash. They need to borrow $10M for their 2025 plan, now borrow more money to fund this CB purchase (I realize it could fund this portion with current CB production but still a risk), all while the share price is in the gutter so you cant even fund a partial portion of the borrowing by

[Tad]

It might appear on first glance that the company is "tight" on funds. No doubt they're stretching a little .... however, A bit of back of the envelope estimates: Based on known production for past two months and projected December production revenue including oil from Cas 3, there should be approximately $17.6 million revenue in Q4, (if TXP has managed to get the Cas 3 oil

[matt2018]

apprerciate the math, that $5.7M G&A number has to have cuts in there they can be made. Its too high based on estimated rev of $17.6M What if they issue convertible notes to fund the CB purchase and just proceed with the $10M loan for the 2025capex and leave the cash as is on the balance sheet. The revenue from CB can easily pay the interest on the notes and have money left over to drill there

[Tad]

Sorry about the omission matt2018, i meant to say operating expenses and G&A for the $5.7 million number. Actual G&A alone is running roughly $2.5 - $2.7 million per qtr.. There's a couple other items in that $5.7 million figure as well.  As I mentioned in my previous post, these were just ball park figures to begin with , "back of the envelope" numbers. My point is

[stanley]

Lurk & Learns & Tad: Thanks to Tad for their calculation(s). Now when looking for someone "in the know" look no further than the Minister of Energy & Energy Industries. While the whole presentation is excellent primer on gas pricing. Not very often do you get the Minister to opine on Touchstone's deal with Shell vis a vis the Central Block. (see ~ 37 min mark)

[stanley]

Lurk & Learns: Sometimes, there is commentary from opposing factions; case in point is the aforementioned opinion of the MEEI Minister. With apologies to the linguistically challenged unable to understand the (press) questioner's Trini accents without the (unavailable) translation. Now for those who took the time (took me three listens) to fully grasp the minister's far reaching