Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Following the testing of the Vlieland formation, a sidetrack was drilled from the Q10-A04-A wellbore at high angle through the Zechstein carbonates and clastics and completed in the primary Slochteren formation at a TVDss of 2,319 metres. Following data acquisition, the well is now producing gas from the Slochteren reservoir at a gross rate of ~800,000 Nm3/d (~5,080 boe/d) with the other horizons currently shut-in for reservoir management purposes. Following the completion of drilling and intervention activities on the Q10-A field, gross gas production has reached approximately 2,000,000 Nm3/d (12,700 boe/d).
Phoebus an independent reserve report was conducted by GLJ.
The report excludes the second pay zone encountered on the Casc-Deep well and also the discovery made today at Royston.
https://www.investegate.co.uk/touchstone-explrtn.--txp-/rns/2020-year-end-reserves---operational-update/202103050700043095R/
Hope that helps.
Mickey, only the intermediate zones have been tested on the Cas Deep well which were previously untested on the BW5 well. The main gas pay zones identified in Cas-1 are 20% thicker and still to be tested, these are the zones which are now perforated and put on test hence why I see this becoming a second development well and reserves increasing. Read the RNS;
The well encountered 558 net feet of hydrocarbon pay in the Gr7bc section of the overthrust Herrera sands at measured depths between 5,450 and 6,050 feet. These sands, locally referred to as the Sheet 3 overthrust sands, correlate to the sands discovered and tested at Cascadura-1ST1 at depths between 5,516 and 6,162 feet. The gross section encountered in Cascadura Deep-1 was 20 feet less than observed in Cascadura-1ST1 which is located approximately 900 feet to the northwest.
The well encountered 449 net feet of hydrocarbon pay in the Gr7abc section of Sheet 4 of the overthrust Herrera sands at measured depths between 6,050 and 6,532 feet. These sands correlate to the lower sands discovered and tested in Cascadura-1ST1 at depths between 6,162 and 6,350 feet. The gross Sheet 4 section encountered at Cascadura Deep-1 is more than 245 feet thicker than sands observed in the Cascadura-1ST1 well and is consistent with the Company's models based on seismic data.
The intermediate Gr7bc sands were the Company's primary target originally identified in the offsetting BW-5 well. 308 net feet of hydrocarbon pay was identified in two thrust sheets within the Gr7bc section of the intermediate Herrera sands at measured depths between 7,086 and 8,246 feet. The sands encountered in one of these thrust sheets correlate to the offsetting BW-5 well while the other thrust sheet was not encountered in the offsetting well; neither thrust sheet has been previously tested.
Makingdough, Casc has already been tested and independently certified. The reserves are booked.
Casc deep is testing a circa 200ft lower extension of an existing proven zone which reserves have already been booked against and additional sheets targeted.
The existing independently certified reserves as things stand aren't being valued correctly, the market has undervalued much of what is already proven and it is of my opinion that the well currently under test will provide increased reserves before being put into development alongside Cas-1.
Malbrad, Royston has absolutely nothing to do with Shell being “clueless” as you state.
Shell were targeting oil at Royston and encountered 700ft of gas effect, at the time of drill there was no gas infrastructure and since gas was not a target just like at Casc they abandoned the well.
Have added to today, as before with the initial Cascadura 1000ft pay result and the recent $2.2bn NGC contract this weeks RNS has been massively underestimated.
The lower pay zone encountering oil was a significant bonus discovery as has been the case with the upper oil zone now put on EWT. To identify a deeper oil pool and shows whilst also acknowledging an updip optimal drill location some 1000ft higher should not go unnoticed.
If the recent weakness is merely based on testing delays and IG positions being liquidated whilst ignoring the substantial reserves upgrades, the above bonus oil zones, third drill rig and huge progress on the road to Royston I will happily take some more.
Just to point out on a recent comment that has been made here, Royston is not dependant on the completion of the seismic surveys and will go ahead even before completion. The well is another twinning similar to those at Cas etc, to an earlier Shell target that encountered 700ft gas effect.
I certainly wouldn’t rule out the bonus deeper zone at Chinook, they’ve already stated more optimal locations are identified updip. If true that’s potentially a deep 1000ft oil payzone on top of the intermediate zone currently on extended well rest and all the thick gas bearing sands yet to test
Both recent RNS have added around 6p to the share price from previous highs.
That includes a multiple stacked target with new significant pay zones identified and a well cut short due to excessive gas pressures and a multi billion $ contract signed with NGC.
The market sleeps, it did it last time on the initial Cas discovery announced over 1000ft of pay.
Eventually the real valuation will out.
Bladey they have been finalised, the deal has been struck and signed - the pricing will be commercially sensitive / we may be given a range indication but needless to say it is a route to market with the National Gas Company of Trinidad and Tobago (a government entity) which commercialises all reserves.
Excellent RNS and the teams have delivered, the information omitted is clearly commercially sensitive but given PB is a very astute and straight businessman I would conclude that the deal has been structured based on the indications previously given on interview (and likely a new interview to follow today too).
The deal will be worth billions, the sale price of course will be profitable and with minimal capex required for tie (being onshore and close to existing infrastructure) it appears some if not all of this will be carried by NGC allowing TXP to use cash proceeds to further exploration and development thus win win all round.
Today’s RNS is monumental.
https://www.hydracapital.ca/2020/12/04/touchstone-hits-new-gas-while-transglobe-bags-a-new-deal/
Matt - additional there is 200ft additional pay on the original Cascadura target zone which was not realised on the first drill.
As per the seeking Alpha article they anticipated that 169ft could alone contain 100bcf so that has also been exceeded.
What a result, that is a huge payzone identified and still the mammoth zone still to reach (oh and another 21 target prospects to go after).
So 4/4 results in now at 100%. PB is delivering Christmas early with more news in the pipeline.