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It came out in the Q3 update the other day.. I personally assumed it had been brought forward and looks to be the case
Spawny, offsetting an extension (without the need for reapplication) and a reduction in seismic to drill an additional well is much better use of capex!
Ref NGC, I personally believe they are waiting to see ideas of total flow rates to negotiate the best possible deal, with a rising price at Henry hub this could prove to be very lucrative.
AIMHO
Alligator, the restructured loan was with national T&T banks.
The initial loan terms was for US$20m of which TXP have drawn down US$15m.
“ This is a real bank – there are no sweeteners, no warrants, no royalties, and no covenants until 2023. Republic is capable of lending up to US$50 million without syndication, so this means we can go back to them as we grow and make more discoveries on Ortoire, and they can grow with us.
It’s a super simple story right now; we’re going to drill the next two exploration wells, and away we go.”
Got a few more funds due to be released soon so will be looking to add a good slug in here.
Given Cascadura is not even priced in fully, we then have Chinooks latest "World Class" discovery and anything found at Casc deep, Royston (both of which are now largely de-risked) and the 20+ identified targets - couple that with a major multi billion $ deal with the government due to be announced for offtake all of which are effectively thrown in for free.
Patience as has always been the case will be hugely rewarded here.
Derbon, the 20ft of pay you refer to is in the shallow Cruze formation not the deeper target.
Chinook TD in deeper pay, it never reached full potential due to rig limitations.
The thickness of Casc deep (and if it’s connected) should be detailed post drill.
2/2
Oh, and the last thing, but very important thing - Paul says there are so many different potential buyers on the island, so that it is not going to happen that we get this stolen from under us. There would be a bidding war since so many parties are interested in the gas, and we will get fair value if and when this event occurs.
Fantastic, time for a beer or 3 for 3 beers :-)
Sharing Junky Monkeys excellent notes from ADVFN for all those who missed the call;
My highlights scratched on the back of an envelope:
Anticline Heart of Fairway - 3D Chess Match - We have the heart of the watermelon, no need to branch outside block.
Full Cycle now, not a well by well thing anymore.
3 Rigs ...... Gonna get me in trouble but 3 rigs ..... Bring it on I say!
Capital raise - not going to make any decisions now, will use debt where appropriate. I can't imagine they would even consider this before Cascadura Deep is finished and tested as well as Chinook. Royston would likely be funded with capital raise is what I interpret him trying to say. That will likely happen at a higher price I would also say the interpretation there could be. I'm not going to sit out and wait for it ....
Cascadura could do 10,000 boepd, but the pipe in the hole can't handle it. WTF! Can we have more problems like this please?
Chinook more significant that Cascadura + hydrocarbon show in lower sand sheet for first time. Getting a stiffy for that virgin sand?
Chinokk, at least in Paul's book is WORLD CLASS !!!! Go back and read that sentence a few times.
Cascadura Deep is a very large structure - well bigger is usually better, go Paul.
Chinook and Cascadura could be connected ..... STOP THE BUS! Get a drink ..... Start the bus again. %¤/"% Yeah.
Royston significantly de-risked - we knew that ......
Jan Feb Coho pipe - 57 meetings with locals due to Covid can't have town hall and difficult to go fast with under Covid since hasn't been done in 20 years on island. Government covering it's rear and going slowly.
NGC hopefully next month - will not be able to divulge specific gas price due to competition would gain advantage via info for end users costs. Gas will be priced in range as otherwise in Trinidad.
Rig moving this week to Cascadura Deep. Should be spudding within Nov 4 window I would think.,
Pools not spilling into other blocks, pretty well confined by faults, they doen't see any issues here yet.
Testing equipment used will be same, Covid makes bringing in from outside more problematic, and the data they could get with this equipment was good enough, did not need to have the additional drawdown.
Safety issue due to access if trying to test Chinook while drilling Cascadura is not acceptable to have two simultaneous operations on same access road. Fair enough, this is the oil industry who take the HSE thing very seriously and many times much too seriously. Incident days get reset to 0 because some slipped and scraped their shin. Don't ask, if you haven't worked in oil, you won't understand how utterly ridiculous it has become.
But anyways, switched on hostess, yes, we do view this as our company, because it is! She had good questions and was obviously paying attention, so would like to see her back. Well done again by Paul, and of course very well done by the TXP team!
Oh, and the last thing, but very im
Straight upto 5.11% - funds and IIs posturing.
Second tonnacombes post.
Very unlikely to see a raise prior to Casc deep results and NGC contract if at all. The headroom on the loan facility is known and can be extended to 150% of the current facility with drilling success (which has occurred).
TXP already have cash at bank post and are cash generative, $5m still to be drawn down on the existing loan facility and a recent injection of $2.8m from tax rebates.
To buy any sizeable position right now is difficult, consistently NT.
https://www.touchstoneexploration.com/investors/presentations/
Following on from the update, it appears IPF are on a solid footing and certainly have got their house in order.
The bond issue was a formality imho, the terms of the note seem fine in the current environment with the coupon extended by 5 years.
Business appears to have returned back to normal with a circa 95% collection rate. Headroom looks healthy with a good cash balance to boot.
I do believe dividends are likely the reinstated also which will then attract further funds into the mix.
Share price whilst risen has only made a small appreciation based on the news to date, I fully expect this to move steadily north from the lows.
Those in from these levels should see an excellent return in the coming weeks and months AIMHO
I’m pretty sure from memory that a successful result on exploratory drilling allows for further extension on the timelines.
I don’t see their four well quota being an issue, casc deep is 4/4 and due to spud imminently.
32mins in.. PVR presentation
https://www.youtube.com/watch?v=g7nvORAcnJs&feature=youtu.be
Jaykee, the existing discoveries at the current prices are already undervalued.
Soon the market appreciate the amount of cash being thrown at TXP from production and the number of exploration targets still to go after (with a currently 100% success rate and proven model).
Current consolidation is expected but despite the meteoric rise in the last 12 months the value is still not being realised.
3/3 success with number 4 about to drill.
Shell sat in the neighbouring block wont have their blinkers on - especially given their appetite to expand their gas production in T&T.
Those with impatience could always miss out on a T/O approach literally out of left field.