Member Info for tidd83

“Delighted to see @JohnWoo64494325 , CEO of our client @InfraStrata_Plc (AIM: #INFA) quoted in today's Bloomberg @business article on the potential impact of a no-deal #Brexit on #energy in Britain. ” https://www.bloomberg.com/amp/news/articles/2019-02-21/keeping-the-lights-on-after-brexit-no-deal-s-impact-on-energy?__twitter_impression=true https://twitter.com/yellowjerseypr/status/1098626547366481920?s=21

https://twitter.com/johnwoo64494325/status/1098272719857246208?s=21

Excellent coverage; http://www.valuethemarkets.com/index.php/2019/02/19/touchstones-paul-baay-ramping-operations-ortoire-firm-raises-3-8m-fund-maiden-drill-txp/?utm_campaign=shareaholic&utm_medium=twitter&utm_source=socialnetwork

Just watching the below so for those who missed it, link is below to the interview https://www.proactiveinvestors.co.uk/companies/stocktube/12279/touchstone-to-target-world-class-oil-and-gas-reserves-after-fundraise-12279.html

A good raise today with minimal discount and likely taken up by sticky holders and the larger institutions who have already established substantial holdings here. The cash to fund the initial drill on Ortoire is far from binary, with existing production around 2k bopd and Brent pushing towards $67 then cash flow will begin to build up. Given previous comments from PB I personally believe the 2019 development plan has been parked until they get an outcome on the bigger Ortoire drill.. if successful I think the accrued cash will be put to a second well on the same block. Success at Corosan will mean the gas can be tied in to the nearby shell facilities. That will then be a step change for production figures with the potential to double overnight..

Nobby I have no doubt although INFA are the only ones in Uk and Ireland to have completed their FEED. I’m pretty sure those in financial discussions would feel more comfortable with a completed feasibility study in hand and all permits ready to go than with those who don’t. The location itself and timing is also rather strategic.

Not sure anybody has disappeared, the rough timelines were in the recent RNSs, in the mean time volume is still up so I’d expect a big chunk of warrants will be getting cleared in the near term and thus more cash being banked by INFA. I wouldn’t be surprised to see most (if not all) cleared by the next RNS.

Don’t doubt it, coming on the radar now and clearly picking up on the volume front.

3 year chart that is.. beginning around 16p.

Pretty sure MATD was a whole host of high risk, low COS exploratory wells from memory? The difference here is this is appraisal, couple that with the knowledge that of 5 previous wells drilled in Barryroe all of them encountered hydrocarbons with the most recent vertical achieving a flow back close to 4000bopd. I think the existing 34mbo net to LOGP at 2C will have a high COS of moving in to 2P - it would be interesting to see if a figure has been officially stated as to what that is. Couple the above with the huge exploratory upside and the side track horizontal testing all funded I think this will shape up very well. My knowledge on JOG is limited (perhaps someone could do a better comparable) but at 18% of verbier, JOG have exposure to a midcase range of 75mbo or net 13.5mbo and are currently trading at £45m. The above is 3x the current MCAP of LOGP who have net 2C resources of almost 3x as much. I think the chart there may be of similar comparison to how I’d personally expect this to play out.

Being hidden through NEX also, looking very good.

In other news I have mailed the company separately this morning to see if I can get a timeline for expectant news around development programs, I don’t assume it will be far away.

Debt isn’t an issue, deferred until Jan 2020 - they also recently released 5m of cash flow back into the pot that was held as collateral against the position. Production at last update was close to 2000bopd, their net backs at the time were realising around $33 (subject to change based on POO and royalties but there or thereabouts) that equates to around $2m cashflow per month even assuming a more than considerate 20% discount rate being applied for oil fluctuations that’s $1.6m monthy. From memory the repayment terms of the loan were around $800k per quarter so circa $266k per month beginning 2020. At which point News around Ortoire drilling be it via farmout or solely carried will be know and the initial target being a low risk gas target. On top of this the 2019 development program will be added to the mix and I would expect circa 5-15 wells to be announced (based on decisions on Ortoire). By the time the loan is due (if not deferred again on agreeable terms) TXP could be pushing on for 2500-3000bopd. So £16m is cheap, even taking in debt implies an EV of £25m for a 2k producer with 2P reserves of circa 18m barrels and a huge low risk block about to be targeted.

MTFB shares are secured against their debt facility which is around $3m. 9.53% holding equates to around £3m. Other assets aren’t of too much interest from initial viewing but explains why this isn’t bouncing - unless I’m missing something?

https://twitter.com/johnwoo64494325/status/1096030411975811072?s=21 Very interesting...

Possibly on NEX chukk?

$64 TXP is now hiding in plain site. Circa 2000bopd production, some step change news around Ortoire due and trading around £16m

With further OPEC cuts Brent is showing no sign of slowing, $63

I think the delay to complete due diligence on the latest tabled financial offering was sensible. A few weeks is irrelevant in the grand scheme of things especially given the interested party has alluded to financial backing for additional projects beyond the initial phases. With a 40 year lifespan on Islandmagee alone it makes sense to consider all options and from what has been mentioned it appears the latest offer may be on even more favourable terms. Given there are four parties in discussion with financing, six around offtake with an LOI already in place I think negotiations should be favourable. The project from a development point is largely derisked, all permits in place and any element of debt financing upto 65% is backed by the UK guarantee scheme. The closure of Rough and the requirement for energy security with/without brexit cannot be ignored. Islandmagee is currently the only gas storage development project to have completed FEED.

Herrera sandstone reservoirs, on which Ortoire sits, are turbidite deposits – deep deposits formed by massive gravity flows that can turn into vast hydrocarbon reserves. The company expects to start drilling on the Ortoire block in the first half of 2019. The first target will be Corosan, a prospect located just north of Shell’s Carapal Ridge discovery, Trinidad’s largest onshore gas/condensate discovery in 50 years. President and CEO of Touchstone, Paul Baay is calling Corosan a ‘potentially world-class deposit’ and previously told ValuetheMarkets: ‘Corosan-1 tested about 8MMcf/d day at several different zones, but the operator didn’t drill it all the way to the base of the Herrera, so we plan to drill down to 7,000ft and investigate the full potential on offer. More practically speaking, the benefit of operating in the Corosan area is that we are only about 3km from Shell’s gas plant so we can tie in directly to the south of us. Essentially, the well will provide excellent proof of concept for the turbidite approach, the area is already proven to have hydrocarbons, we know it has some pay, and it is very close to market.’