Update from Touchstone Exploration on progress of tie-in for Carapal Ridge 3 well.
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The shareholder group on the Touchstone Exploration Discord forum submitted a list of questions
to TXP CEO Paul Baay earlier this week.
Here's the questions and Paul Baay's responses rec'd on Wednesday January 15:
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Q1. What’s the status of the Cascadura compression unit?
PB: Run test this month in Houston, then shipped to Trinidad. The factory run test is
on schedule and the unit is at the final pre-shipment stage.
.
Q2. When will the compressor arrived in Trinidad and is Q2 start-up still the plan?
PB: Not anticipated until February with Q2 start-up.
.
Q3: What uplift should we expect once compression is live?
PB: Initial uplift should be about 5–6 mmcf/d, but really don’t know until
we get it running. The wells have never seen 300 PSI.
.
Q4: Any remaining bottlenecks that could delay full utilisation?
PB: Nothing we see at this point. We’ve had to break it into smaller loads to
accommodate roads and bridge loads in Trinidad.
.
Q5: Are you exploring alternatives to waiting for VAT repayment?
PB: Yes, but I have no updates.
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Q6: Could VAT be offset against royalties or taxes?
PB: We are looking at that option but don’t know if the government would be
receptive to that.
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Q7: How do you balance waiting for VAT versus other funding routes?
PB: VAT is only part of the solution the rest will be capital allocation.
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Q8: Can you update us on Cas-4 and Cas-5?
PB: We don’t provide individual well updates
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Q9: Why delay tying in Cas-4?
PB: Currently we will wait for higher gas prices and focus on Central Block.
I am tired of selling 2.33 gas.
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Q10: Any workovers or stimulation planned at Cascadura?
PB: Possible Cas-5 and Cas-Deep, but still in the planning stages.
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Q11: Has CR-3 changed your view on horizontal vs vertical wells?
PB: We need to get CR-3 tied in before we make that decision.
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Q12: Has gas at Karamat changed the Central Block plan?
PB: Additive, but because it hasn’t been produced before it could be a higher priority.
.
Q13: Is a dedicated Karamat well being planned?
PB: Yes - planned and approved. Just waiting on capital allocation.
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Q14: What’s the status of stimulation / fracturing analysis?
PB: Yes, Colleen is still finalising that before we make a final investment decision.
.
Q15: What would trigger moving ahead with stimulation?
PB: Really depends on the final costs and potential production adds coming out of
Colleen’s model.
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Q16: How do you think about shareholder alignment and capital markets activity?
PB: Can you define open market purchases?
(I have gone back on this Q and clarified. I will update once response received
.
Q17: What milestones could drive a re-rating over the next 6–12 months?
PB: It will not be one event. It will be a series of smaller events like CR-3 on production,
the compressor installed, and then additional drilling at Central. Need to convert reserves
into funds flow. CASH!!!
.
Q18: Has a new pump been installed at Cas-3?
PB: No — we are waiting until we decide what to do with Cas-Deep and Cas-5 so we only
bring in the service rig once.
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Q19: Are management share purchases restricted right now?
PB: Yes, we are in blackout until we release financials in March.
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Q20: How does management think about alignment with shareholders?
PB: We are all paid shareholders, so we have full alignment.
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Q21: What capacity do the CR-3 / CR-4 pipelines have?
PB: 8-inch line, which can manage almost any volume.
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Q22: Can CR-3 and CR-4 share infrastructure?
PB: They would both produce into one line and be metered at the wellhead. Standard
oilfield practice.
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Q23: Will surface works be ready for CR-4?
PB: Yes.
.
Q24: Is the surface network being built for future wells?
PB:Sort of. We don’t want to overbuild, so we’re taking a phased approach.
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Q25: What were the key learnings from CR-3?
PB: Karamat was the wild card on the last well, so we will design future wells to get it
behind casing before entering the Herrera.
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And a couple of follow-up questions were submitted and responses were rec'd yesterday
from CEO Paul Baay.
"The sequence will all be in parallel. The tie-in is well underway with them laying out pipe today
and welding next week.
The well will be completed rig less in the next couple of weeks and the test into the line. So we
won't know any rates until first production unfortunatley.
Focus is going to be on the Central Blocl, Cas compressor and balance sheet in that order."
.
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"Thank for the feedback. Cas 5 is on production and been stable. Cas 4 we are evaluating costs
and design of a possible completion and Cas 3 Schlumberger has taken full responsibility for
the failed pump and putting a plan together, Paul"
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