Member Info for Adon30

Proactive interview

https://www.proactiveinvestors.co.uk/companies/news/1043668/touchstone-exploration-discusses-transformational-2023-and-the-road-ahead-1043668.html

Could do with a twitter picture now of current work underway at State 36. Although they may leave that until the main rig moves in in a few weeks time.

Proactive Investor Presentation

https://www.youtube.com/watch?v=agdQLQtn6ac

If you listen to the Investor meet presentation from yesterday. JA explains how SENX stayed debt free and didn't fold.

There was a raise back in Nov 2020 which (I think) was part of this.

1 Tcf is the high prediction prospective (Net to Predator). Over 2 Tcf in total high at Corrib South and Ram Head.

More realistic mid point is 300Bcf (net to Predator).

Rams Head contingent Resource around 60Bcf (net to Predator).

Looks like an increase in activity over the weekend at State 36 has seen a few more trades go through. About time there was finally regular market activity after all this time.

Also looks like several moving things about before the end of the tax year.

Summary:

* Production rates steady but low and also attracting a lower commodity price.

* sidetrack at Sabria W-1 not for at least 6 months (sometime in Q4 maybe)

- Long lead items on order and costing less than previous highs

- Drill rigs difficult to get in Tunisia and needs to be the right type. Could delay it further (remember last time!)

* Sabria N-2, 55% partner is not receptive to any further work. Unlikely to happen this year as they want progress on pumps which is waiting on W-1 working with end of year timescale. They claim to be in discussion on this well but looks a complete non starter at present.

* Moftinu has at least a couple of years life left.

* Rates being kept low due to low commodity price and excessive tax regime in Romania.

* Did mention that they own the gas plant ($7.5m) and it can be moved.

* No plans to explore...

I can understand the reduction in production rates in Romania while the prices are low and taxation is high. But to not be planning a drill 9-12 months down the line because of this does seem short sighted. The last 3 drills have all failed to produce (commercially) in Romania. If there was to be a peak in prices or a change in fiscal regime then presently SENX are in no position to take advantage of it. It would take them 12-18 months to have anything in place on a success case. And by then they would have probably missed a lot of the benefit. They don't seem to be very proactive on this front.

The Tunisian assets could be huge but this should have taken off last year. Now it will be 2025 before any increased benefit from them.

For now the production will pay the bills and their inflated wages. However as an investment case it is not looking to rosy for the coming year.

Hopefully people will use there votes wisely again at the AGM to prevent this board from having any free reign. And possibly even see some being voted off.

Not sure today warrants a 10% drop based on the assets but that's the market for you.

Why the need to de-risk? It’s already been proven once before.

Not a lot happened. Still taking massive salaries…

Previous IronHand rig was 1800hp and similar ratings. So all capable rigs.

The rig wasn't the problem last time. It was the cold weather that had the biggest effect.

You mean Plan B as in purchasing 100's of other producing wells on a non-op basis and having a hedging plan to maintain substantial income and cash flow with minimal payback times....

I've said for months it will be after Easter ;)

When was ZPHR ever in double figures??

State 16 will be used to develop and prod the overlying layers (C9 etc). There is a permit in waiting on this. It is only a 4000ft lateral at 16-2 so I wouldn't worry about it as a production well yet, plus it needs added infrastructure for the gas. It will also need fine tuning for flow to prevent salt build up.

I've said for some time I am not expecting any movement before Easter and now it looks like the state 36 drill will be late April/ Early May.

Was really hoping the Helium well would be this year but apparently that is in doubt now. So all down to a successful 36-2R well.

CEG need the money in T&T to back up their acquisition in the latest bid round and fund that. Plus keep current operations operating. I wouldn't look much further than that.

The higher pressure resulted in a valve failing. Then to try and protect the well all the coiled tubing was crimped. This then proved to be near impossible to remove from the well. After many months trying they gave up trying to remove it. They plan to redrill the well shortly.

Note: the valve should have been ok even with this high pressure but had a premature failure. Possibly due to cold conditions. The pressure will provide an extremely productive well and they usually flow extremely well.

NtD,

32 sits on the gathering lines. 16 needs a short connection to gathering lines nearby.

There are other 'infrastructure' events happening. CH didn't mention them.

He has cut out reporting oil, gas and condensates which is something I suggested he reported back at the beginning. I don't think the loss of data will be a problem.

2023 full-year production was only marginally under forecast (1,040 boepd actual vs 1,150 boepd forecast)

There are things happening. People need to look it the right places though...

It’s almost as if PRD only wanted to use sand jetting but couldn’t get to do it within the amendment timeframe.

The perforation guns used were extremely short knowing that they’d had washout and had to use heavy mud during drilling. Almost as if they’d chosen them deliberately not to damage and compress the formation. When they knew sand jet would provide a much better finish and better chance of successfully flowing gas.