Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
tradeemup - couldn’t agree more.
It’s also worth noting that the cost of drilling is also cheap being that it’s onshore and a ready market in T&T who are desperate for gas.
Already in negotiations with state owned NGC for sale of gas and potential funded infrastructure tie ins.
Perfect
Cascadura has come in WAY above anybody’s expectations even before the deeper zone is tested.
Unbounded and an AOF larger than that hit at Carapal Ridge on discovery, this is incredible.
Even before Chinook, Royston and the deeper zone is tested (all of which follow the same modelling as both COHO and Cascadura (and of which are expected to be even bigger) this is fantastic.
Production rates around 1700bopd currently of oil, circa 1500-2000boepd from COHO and now this at 10k Boepd makes TXP the real deal.
Should see a significant re-rate coming here.
The first question is just how big is Cascadura, 300-500bcf?
UOG has always been undervalued, hopefully today's news gives the market the focus it needs.
Circa 2500-3000boepd production a large portion of which is hedged at $60.
MCAP is just £11m as it stands. A long way to go.
Saw similar at TXP for a long time when it languished around the 8p region with no love, the correct news arrived - the market focused and we are testing 50p at present with more to come.
I'll make one post on here, not to deramp but to stick some realism to those who don't appear to have much idea of what is going on here. It beggars belief to read only yesterday and see some investors asking "What an RTO is?"
Regardless of MTFBs past, it is ultimately (as advertised) a cash shell. The raise today gave a cash injection to make the shell more attractive so as it stands there is around £800k in the pot. If you assume a valuation on the AIM listing of around £450 that warrants an MCAP somewhere in the region of £1.25m
Fully diluted there are 647m or some shares in issue. That attributes a fair value at just around 0.2p per share.
The rest is noise, any company reversing in to the shell must be of value above the prevailing MCAP or else it is not considered an RTO. If they do complete a deal the shares will be suspended until relist, at which point they may / may not complete a share consolidation.
Either way, the current value of MTFB as it stands today is the 0.2p figure above and that imho is likely nearer the mark to be hit if an RTO is triggered. The rest is just noise.
Juyamah, just looking in here but spot on.
Superb RNS, what is noteworthy is that the second stage test was completed with a draw down at only 13%. Flow rates exceeded the limitations of the testing equipment! PB stated that typical target was a draw down of some 30-50% so it shows the full extent of the enormity of the results here.
Chinook next and then possibly a new well at Cascadura targeting the deeper and original zone (which could again yield similar results) and then finally onto Royston all of which are fully funded.
Both Chinook and Royston targets are huge, I very much look forward to the reserves update from Cascadura too - a lot to look forward to and already at a total now of circa 14k BOEPD production figures.
FTSE, DOW and Oil up early trading so we should see some gains come back across the market.
TXP should follow suit from these lowly levels, plenty of bargains and opportunities to be had where fundamentals have not changed.
https://trinidadexpress.com/newsextra/mysterious-night-glow-revealed/article_3832f01c-4a16-11ea-a0e1-7f9b56f5c468.html
"President and Chief Executive Officer, Paul Baay, said, “The Cascadura production test results represent a dramatic change for Touchstone, as it confirms the monumental resource potential of the Ortoire exploration block following the earlier success of our Coho-1 well. Furthermore, the test results are only attributable to the lower most portion of the well, and with 450 feet of contiguous sand to be tested, the full potential of the structure is yet to be defined.”
Original well was drilled in 1965 - logs indicated 700 feet of gas effect, but the well was never tested.
Never tested since there was no requirement for gas back in the 50s/60s.
700ft of pay is nearly twice the size of the target at Carapal Ridge which was previously the biggest gas discovery onshore T&T.
Mickey, a similar result to the lower zone would be exceptional.
It would be interesting to see what the max capability is of the well and with the right equipment being shipped in that can easily be tested.
Regardless the results of Cascadura are off the scale. If PB and the team continue to prove up the block who knows where this could go and success rate on the current model is 2/2 to date so 100%.
I think it makes sense to fast track these next wells not only to get a handle of the scale to determine what pipelines/processing plants are required but also to maximise company value if there is a potential JV or TO suitor waiting and watching.
For those who missed it
https://youtu.be/Rs9UuTEO7X8
10-11k BOEPD Cascadura + 1700 BOED COHO + 2000 BOEPD underlying production.
Pushing on 15k BOEPD and this is before the deeper zone is drilled and both Chinook and Royston - both of which are further derisked and even bigger structures.
Gas doesnt suffer from SPT so quids in!!
Excellent interview, fully cashed up and sounds like Royston and Chinook will be done simultaneously.
Bidders in place to sort the pipeline for COHO.
Expected similar figures from the upper zone in Cascadura so we are looking at a 10-11k BOEPD figure before the deeper zone is drilled out.