View From The City: Exciting times ahead as Touchstone Exploration 'shifts focus towards higher impact exploration' (TXP)

By James Moore

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Since joining AIM in summer 2017, Touchstone Exploration (LSE:TXP) has significantly increased oil production across its portfolio of assets in Trinidad & Tobago. During this time, the company has focussed on building a strong, cash-generative foundation through drilling lower risk wells. The strategy has paid off and in the first half of 2019 Touchstone created free cash flow of $3.7m.

To build on this success, the firm’s directors have turned their attention to the business’s larger exploration projects and have initiated a drill campaign targeting three separate high impact wells. The first of these, Coho-1, is already underway and the second, Cascadura-1, is scheduled to spud in mid-September.

In anticipation of this, Touchstone’s broker, Shore Capital, has recently released a broker note, in which it says it sees “considerable value in this full-cycle operator, in addition to a compelling risk/reward profile on the exploration side.”

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Author: James Moore

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.