On Tuesday, ValueTheMarkets hosted Paul Baay, president and chief executive at Touchstone Exploration (LSE:TXP) in a recorded presentation and Q&A session.
Throughout the event, Baay provided a detailed overview of the company’s ongoing work at the Ortoire block in Trinidad, where it has made two game-changing discoveries over the last few months.
Earlier this month, the firm revealed that testing of its Cascadura well had delivered an average flow back rate of 5,180 barrels of oil equivalent per day (“Boe/d”), confirming a “significant, liquids-rich natural gas discovery”. Meanwhile, modelling of its Coho well in December supported initial production rates of 1,667 to 2,000 Boe/d gross.
To put these figures into context, Touchstone’s average oil production sat at 1,729 barrels a day (“bbls/d”) in the three quarters ended 30 September 2019.
“With what I know today, 10,000 Boe/d in 2021 looks very doable,” Baay told investors on Tuesday.
The massive boost that the two discoveries could drive has not gone unnoticed by the market, with Touchstone’s share price currently sitting 83.4% higher than it did at the beginning of the year.
In the event, Baay also detailed the firm’s plans to accelerate its work on the block this year with the drilling of wells at two additional prospects called Chinook and Royston following a recent £9 million fundraise.
He also fielded numerous questions from investors, covering topics such as Touchstone’s plans for its producing assets on the west side of Trinidad and the firm’s strong relationship with the island’s government. Items covered also included Touchstone’s long-term plans in Trinidad, its procedure for tieing-in its Ortoire wells once they reach production, and its expected use for the free cash flow its increased production could bring.
For a full recording of the presentation, please see below:
