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Nice one Tidd.
When I inquired part way through the year regarding costs of each drill the company stated then that they may drill an extra 2 drills after the 2018 10 drill campaign subject to cashflow. Obviously as cashflow has significantly improved based on both production increase and oil price they can now afford to drill an extra 4 wells this year.
I did not believe that we would see a placing this year as no doubt that the company are foreseeing oil prices rising. We should also see an improvement in cash being received next year as no doubt a 3rd of the production being hedged will be a lot higher than this years hedged pricing.
Looking forward to the next ops update as we have lost a little bit of momentum over the past month.
PB stated that declines are around 1% a month with new wells on average producing 60 bopd so that is what I am basing my figures on and based on 6 wells this year and 15 next. When I met him during the year he also stated that they wanted to be at 3000 by end 2019. My calculations are based at being at 2800 by end of 2019.
We will have to agree to disagree. With increased production in the region of 10% a quarter and if oil prices stay broadly where they are now then I am happy that it can all be paid for without the need to go to the market.
rossannan - What is the placing going to pay for? The cash being generated is paying for the current and extended drilling for 2018 and Ortoire is not being drilled until mid 2019 and by then we will be around 2500 bopd. With current oil prices and $10m cash there is absolutely no need for one and PB stated in the last presentation he gave they do no want to dillute.
Cash flow is not that tight, they have money in the bank and making CND $5.8m a quarter which is paying for the drilling. Production increasing as well, should be at 200-2300 bopd by end of the year and at current $38 netback per barrel only increases cash. If oil prices keep rising then even better.
Here is the link
https://www.touchstoneexploration.com/wp-content/uploads/2017/06/Q2-2018-FINAL.pdf
Both CERP & TRIN have seen significant falls since May and shareholders are probably looking to hold awaiting a recovery as I would imagine some have made losses based on the falls. We are up 25% since then so it is probably some holders taking a profit and may be a little spooked with the Petrotrin business.
As tidd83 states we have plenty of news to come and with production going up 10% a quarter and oil prices rising again no doubt we will be on the move upwards sooner rather than later.
Windy31 I am not sure I agree with you. I hold TXP but not RRL. Considering that T&T were importing 100,000 bopd for the refinery I find it hard to believe that all your oil was not being taken. Depends obviously what agreements that RRL have in place with Petrotrin.
This could be good for RRL. No doubt that there should now be a push to start producing more oil for export. This can only be done with SPT reform and having all oilers exploring and producing more. With so many refinery staff now looking for jobs they certainly would not want the small companies going to the wall.
So this can only mean more drilling contracts for RRL and hopefully RRL being able to start producing more as well.
Well done PTLP, can you have a look at next weeks lottery numbers in your crystal ball?
To be honest would not like to guess where it will be at the end of the year. Really does depend what happens with this Petrotrin business.
If we can continue to drill 6 wells this year and there is SPT reform then all good. I think short term we will not move much but long term could be good. I would imagine that the company might look at drilling Ortoire earlier than later especially if they are looking for gas and not oil.
If they are not refining then they have no refined products to export. They would need to make this up with crude exports instead. This would mean enticing the oilers to explore and produce more but the tax system has held them back from doing this. Only my opinion.