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Interview with Helium One CEO
https://liberum.wistia.com/medias/umaaaoetjs
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An interesting read on Helium......
https://theoregongroup.com/investment-insights/lift-off-for-global-helium-market/
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https://www.thisismoney.co.uk/money/investing/article-12357303/SMALL-CAP-IDEA-Helium-One-likely-turning-point-buying-drill-rig.html
SMALL CAP IDEA: Helium One at likely turning point after buying drill rig
By Alastair Ford, Proactive Investors, For Thisismoney.co.uk
Updated: 08:02 BST, 1 August 2023
Early in July, Helium One announced the acquisition of a drill rig.
The deal looks to be a game-changer for the company, and the market certainly thought so: shares in Helium One jumped by nearly 100 per cent (now 8.8p) on the news.
But that could be just a taste of things to come.
Ownership of the rig will allow Helium One to set its own terms when it comes to drilling the potential huge Rukwa project in Tanzania later this year.
Hitherto, rig availability has been tight, and getting the right kind of rig for the job has been even trickier.
Everybody recognised the challenges we faced in Tanzania getting an oil and gas type drilling rig,' says Lorna Blaisse, who was appointed chief executive of the company in February.
Prior to her promotion, Blaisse was Helium One's principal geologist, so perhaps more than anyone she knew what was at stake, following the mixed results of the first round of drilling.
'We knew that going into the second round of drilling we would need to have a robust rig,' she says.
'The sale of this rig came onto our radar a couple of months ago and we acted quickly.'
Previously Helium One had stated its intention to start a new round of drilling by the end of the third quarter of this year, and the acquisition means that that deadline will now be met.
The rig is due to arrive at site shortly, and the expectation is that the Tai-C well will be drilled in September.
Crucially, unlike the rig used in the last campaign, this new rig is one that was designed for use in the oil and gas industry.
The most obvious difference between this rig and a mining rig that was used before is that it is much more powerful.
The new Helium One-owned rig will drill the target reservoir section in standard 8.5inch hole, as opposed to the 3.5inch hole drilled in the previous round of drilling. It is a larger rig with a top drive system and, can therefore drill more efficiently.
The new rig is capable of drilling down to depths of between 2,000-metres and -2,400 metres, although the Tai prospect that Helium One is aiming for is reckoned to sit at around 1,200 metres.
The plan is to spend 30 days drilling, including logging and down-hole sampling, and then to wrap it up and assess the results.
All told, the results are likely to be far more conclusive. That will make a nice contrast to the earlier round of drilling, which lingered on for months as the company grappled with various issues associated with the mining rig it was using.
'We're anticipating a September spud,' says Blaisse.
'First we need to crew the rig, complete the civils work and prepare the wellsite.'
That work includes upgrading access roads and placing a camp close to the wellsite. But it won't take long.
The company is fully funded for the planned well, following a £10million fundraise in December last year, and there may even be enough for a second well, depending on outcomes.
'Fundamentally, we want to secure a discovery at Tai,' says Blaisse.
'The Tai-1/-1A well was very encouraging, although we weren't able to reach our total depth nor run a full set of wireline logs. We did have shows, but unless you've got wireline log data to determine pay zones, then you've no way of quantifying your results
The expectation is that this time round the drilling work will be far more definitive.
And if, as Blaisse hopes, Helium One does make a discovery, the potential scale is likely to be very significant.
At the end of May a competent person's report reckoned that there might be as much as 2.8billion cubic feet of helium at Tai alone, an amount that equates to around half of the current global demand.
There are other prospects too, in Rukwa, although Tai has consistently been identified as the lowest geological risk and highest chance of success.
Nevertheless, the titillating prospect remains that there could be even more helium under licence at Rukwa than even the competent person's report modelled.
But one thing at a time.
The key is to get cracking at Tai-C, and see how things develop from there.
If a discovery is made, investor interest is likely to be huge and the potential for a re-rating very high.
After all, the global demand for helium is at an all-time high, and Helium One is the primary helium explorer in Tanzania. Almost all the other helium that gets produced is produced as a by-product of hydrocarbons.
And if a discovery is made, how long would it take to move it to production?
The answer is: not too long. Tanzania has been a reasonably benign jurisdiction to operate in as far as Helium One is concerned, and the government is keen to secure a strategic position for the country as one of the major players in helium production.
So, changing Helium One's exploration licence to a production licence is reckoned to be a relatively straightforward process.
Production, says Blaisse, could come as soon as 18 months after a discovery.
So this is a company that could get very big, very quickly. Watch this space.
https://www.malcysblog.com/2023/07/oil-price-touchstone-iog-beacon-jadestone-and-finally/
.....Touchstone is now within pitching distance of full-on production so the company are taking no risks by missing any final tests at the facility as they approach the final MEEI inspection and ahead of gassing up the system.
Over at Royston, as noted above, the testing continues in this important well targeting the intermediate sheet of the Herrera formation, the primary target of the well.
I remain a huge fan of TXP and when the gas finally flows there will be an incredible increase in value which is by no means in the share price at the moment.....
https://www.proactiveinvestors.co.uk/companies/news/1022126/touchstone-exploration-nearing-final-countdown-to-first-cascadura-production-1022126.html
Touchstone Exploration nearing final countdown to first Cascadura production
Published: 08:12 31 Jul 2023
Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) is on the verge of a major uptick in production as it ente.............
The #Cascadura facility is now mechanically complete and is currently being pressure tested with inert nitrogen gas. For full details visit https://t.co/H2voVM7rT3#OilandGas #Trinidad #EnergyInsdustry pic.twitter.com/MJ6fmSqghj
— Touchstone Explor. (@TouchstoneExp) July 31, 2023
Liberum Dec 2022 Note on HE1 : https://easyupload.io/s16ukz
The Tai-C well pad and road construction are almost complete.
— Helium One (@Heliumone1) July 27, 2023
At 85% completion, #HE1 move into our final few weeks of civils. pic.twitter.com/lv0LZoR5tm
#HE1 1.
— The Masked Stock Trader (@ProAIMTrader) July 26, 2023
I've been on the phone all afternoon with people who were either at the roadshow in the city this morning, or with people who know people who were there:
Main points:
- There's no plan to raise fresh equity before any discovery.
-Loads of PR being set up for August.
Definitive results.......and enough for a 2nd well. Love it !!!
https://www.proactiveinvestors.co.uk/companies/news/1021239/helium-one-will-shortly-be-drilling-at-rukwa-and-this-time-with-its-own-specialist-rig-1021239.html
.......The plan is to spend 30 days drilling, including logging and down-hole sampling, and then to wrap it up and assess the results.
All told, the results are likely to be far more conclusive.That will make a nice contrast to the earlier round of drilling, which lingered on for months as the company grappled with various issues associated with the mining rig it was using.
“We’re anticipating a September spud,” says Blaisse.
“First we need to crew the rig, complete the civils work and prepare the wellsite.”
That work includes upgrading access roads and placing a camp close to the wellsite. But it won’t take long.
The company is fully funded for the planned well, following a £10mln fundraise in December last year, and there may even be enough for a second well, depending on outcomes.
“Fundamentally, we want to secure a discovery at Tai,” says Blaisse........
Rumour has it the CEO has gone to T&T for the "Cascadura Online" ceremony, at which we can expect to see Stuart Young and lots of media coverage in the local T&T media outlets.
So if Paul arrived yesterday in T&T, should be spending today and perhaps tomorrow making sure all is arranged and ok for the "Ribbon Cutting and Turning on" ceremony either tomorrow or Thursday.
So I would guess an RNS (News Release) is going to appear tomorrow morning or Thursday morning stating that the Cascadura facility is going online.
Lets see.
Tipped in the Mail today......
https://www.dailymail.co.uk/money/investing/article-12307541/SMALL-CAP-IDEA-Lassonde-Curve-predict-future-behaviour-mining-stocks.html
........But here are a couple that seem to be at different stages of the Lassonde Curve.
Helium One, which is looking for helium in Tanzania, will drill a proof-of-concept well by the end of the third quarter of this year. If successful, and if Helium One goes on to prove up what it thinks it's got at its Rukwa project, the company could become one of the world's major suppliers. Expect action in the share price as drilling gets underway..........
Related to Noble, but good background info........
https://mining.com.au/the-rise-of-helium-a-critical-raw-material-and-not-just-a-party-balloon-filler/
The rise of helium: a critical raw material and not just a party balloon filler
The helium market is on the rise and that’s not just hot air.
The global wholesale helium market size is expected to grow from an estimated US$5 billion in 2023 to more than US$8 billion in 2030 at a CAGR of 6.6%.
AKAP Energy, which provides strategy and financial consulting advice to energy companies, says in a recent report that the growth trajectory of helium is in line with other niche energy transition commodities such as lithium and cobalt.
The AKAP Energy report says: “These commodities have seen exponential price growth on the back of significant supply squeezes – similar to what is being seen in the helium space. What was interesting is that many industry analysts viewed these increases as unsustainable, however today these commodity prices remain high. In our view helium is in a similar situation with a squeezed supply and demand continuing to grow with new primary helium discoveries required to meet the expected increase in annual demand from 6Bcf to 8.5Bcf by 2030.”
Unlike other commodities, there is virtually no available storage for helium. Helium exploration is a nascent industry and is typically hard to mine. However, the price of the colourless, odourless, and tasteless element is surging with transition to market pricing, significant demand growth, and fragile supply.
The long-term bulk wholesale liquid helium price is US$450/Mscf – 50 times the price of LNG.
Helium constitutes about 23% of the mass of the universe and is second in abundance to hydrogen in the cosmos. Yet at present, more than 95% of the world’s helium is produced as a by-product of the processing of hydrocarbon-bearing gas.
Because it is very unreactive, helium is used to provide an inert protective atmosphere for making fibre optics and semiconductors and for arc welding. It is also used to detect leaks, such as in car air-conditioning systems and because it diffuses quickly it is used to inflate car airbags after impact.
Rising demand and constrained supply are fuelling growth prospects within the global marketplace, particularly for cleaner ‘green helium’ sourced from non-carbon environments.
Rising demand and constrained supply are fuelling growth prospects within the global marketplace
Helium is typically sold as raw product grading 50-80% and is then further processed into Grade A helium. It is often shipped as liquid to distribution centres and sold as bulk liquid helium or gasified and compressed into tanks or small cylinders for delivery to end users. Cargoes are usually sold at a 99.999% purity or Grade 5.
AKAP notes that strong helium pricing is encouraging global exploration, as well as being closer to the higher growth end-user markets in Asia. In 2023 the company sees the most significant new helium production and highest impact exploration coming from Africa.
Dual-listed Renergen (ASX:RLT) has recently started up its helium production facility in South Africa, while AIM-listed Helium One Global (AIM:HE1) has a large primary helium prospect in Tanzania.
The rise and rise of helium
One emerging player in Africa is Noble Helium (ASX:NHE), which has assets in Tanzania.
Speaking to Mining.com.au on the sidelines of the 2023 Gold Coast Investment Showcase this week, Noble Helium (ASX:NHE) cofounder and CEO Justyn Wood says his company is answering the world’s growing need for a primary, ideally carbon-free, and geopolitically independent source of helium.
“It’s not just a party balloon filler. It’s actually a critical raw material with a really fragile supply chain”
“It’s not just a party balloon filler. It’s actually a critical raw material with a really fragile supply chain. That needs something like what we’re doing to help stabilise it. And it’s fundamental to the future technologies that we’re all looking forward to like AI, and it can’t happen without helium.”
Wood tells this news service that smartphones would not exist without helium.
“The chip in your phone that you’re currently recording on can’t be made without helium anymore. And the fibre optic cables that connect all of the continents can’t be made without helium.”
The CEO adds that about 20% of the world’s helium goes into making MRI machines function, however “the coming AI revolution” and the demand for semiconductor chips is fuelling the sector’s growth.
“NASA is a major consumer,” Wood adds.
Strategic assets
There are a growing number of early stage and advanced helium projects scattered across the world.
Located along Tanzania’s East African Rift System, Noble Helium’s 4 projects are being advanced according to the highest ESG benchmarks to serve the increasing supply chain fragility and supply-demand imbalance for this scarce, tech-critical and high-value industrial gas.
Its flagship North Rukwa Project has an independently certified, summed un-risked mean prospective helium resource of 176 billion cubic feet (equivalent to about 30 years’ supply). The project lies within the Rukwa Basin, which has the potential to be the world’s third largest helium reserve behind the US and Qatar.
Noble Helium’s Wood tells Mining.com.au that the company remains on track to drill its first 2 wells at its North Rukwa Project in Tanzania in Q3 2023. The wells will target structures with a combined mean prospective helium resource of 16.5Bcf within the East African Rift System. Both wells are Basin Margin Fault Closure (BMFC) plays.
To date, BMFC plays have a proven 100% discovery rate from 14 oil and gas exploration wells in other basins of the East African Rift System in Uganda and Kenya. Additionally, it has commissioned the first ever Helium Atlas, with an exclusive 5-year agreement allowing the company to identify additional prospective areas to target for diversification.
On 14 June, Noble Helium received a major vote of confidence from the Tanzanian government with the renewal of 6 exploration permits at its North Rukwa Helium Project by the Tanzanian Mining Commission. The prospecting licenses were awarded an initial 4-year term in 2019 and were due to expire in July 2023. As per the mining code, the next term is for 3 years with the facility to extend to a third term of an additional 2 years.
The company has the right under the Tanzanian Mining Act to convert its prospecting licenses to mining licences following discovery.
Helium One is another player in the market and is currently the primary helium explorer in Tanzania. It recently completed an independent verification of the prospective resources at its Tai Prospect. The company says it has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.
Meanwhile, Blue Star Helium (ASX:BNL) is another independent helium exploration and production company, headquartered in Australia, with operations and exploration in North America.
In an 8 June company announcement, Blue Star Managing Director and CEO Trent Spry says the company is validating its commercialisation model.
“While our maiden Voyager development is the focus for our operations team targeting Q4 first helium, work continues in parallel on the exciting Galactica/Pegasus project where the company had 4 successful discoveries over the 2 prospects in 2022 and moved into development planning.
Galactica/Pegasus is a larger scale project, and we are pleased that 3 more well locations have been approved. With 4 wells already approved this will soon bring the development well inventory to 7 with an additional 4 already proceeding through the Oil and Gas Development Plan (OGDP) process and a further 20 wells in various degrees of permitting readiness.”
Spry says Galactica/Pegasus development planning is advancing with a range of commercialisation pathways under consideration, including an initial leased plant and third party operated option with expansion expected to include a potential CO2 by-product stream.
“The third-party owned Red Rocks helium project adjoining Galactica recently commenced selling helium into the market from 2 wells, via an IACX-operated helium recovery plant. Not only does this project demonstrate the expected viability of our Galactica project, it also validates the broader commercialisation model of Blue Star’s chosen development pathway at Voyager.”
https://www.chemanalyst.com/Pricing-data/bulk-helium-1100
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Helium prices in the North American region inclined on account of tight supply availability of the product. Helium shortage continued to impact the overall prices sentiments of Helium along with fluctuating prices of its upstream (natural gas) in the regional market. Facets such as the US bank crisis, along with incline demand for the product, proportionally impacted the overall market dynamics of Helium. Towards the quarter end, Helium prices soared as the demand for the product in the international market inclined. North American Helium Inc announced that it successfully brought in two additional helium purification plants.
APAC
During the first quarter of 2023, the price dynamics of Helium in the Asian market soared in the domestic market. Despite falling natural gas prices, there was a shortage of the product on the worldwide market, resulting in rising Helium gas prices. Due to a lack of supply for the product in India, tilted imported prices influenced the final pricing. Helium prices rose sharply towards the quarter end as the supply chain remained uneven and transit times increased. The Indian healthcare industry, as well as semiconductor manufacturing, demonstrated a higher demand for the commodity. Helium is a significant component in the smooth operation of MRI equipment, which plays an important role in diagnostics.
Europe
Helium prices in Europe fluctuated during the first quarter of 2023 due to fluctuating natural gas prices on the worldwide market. Increased energy prices, as well as a disrupted supply chain, influenced final prices. As a result of the Russian government's implementation of sanctions, there was a shortfall of natural gas available on the European market in Q1. The primary cause driving up the price value was stagnant demand in the automobile, healthcare, and other industries, as well as inconsistent supply from end-use manufacturing facilities.
https://finance.yahoo.com/news/helium-global-market-report-2023-183200924.html
Major players in the helium market are Airgas, Air Liquid, Linde, Messer Group, Air Products, Gazprom, Gulf Cryo, Matheson Tri-Gas, Exxon, Praxair, and Buzwair. The global helium market will grow from $4.45 billion in 2022 to $5.03 billion in 2023 at a compound annual growth rate (CAGR) of 12.9%................
https://finance.yahoo.com/news/helium-global-market-report-2023-183200924.html
Major players in the helium market are Airgas, Air Liquid, Linde, Messer Group, Air Products, Gazprom, Gulf Cryo, Matheson Tri-Gas, Exxon, Praxair, and Buzwair. The global helium market will grow from $4.45 billion in 2022 to $5.03 billion in 2023 at a compound annual growth rate (CAGR) of 12.9%................
If the AIM traders are bored - as for PANR and 88E its summer, and nothing happening. Try perhaps Helium One Global
https://investorshub.advfn.com/Helium-One-Global-the-primary-helium-explorer-in-Tanzania-HLOGF-42211
AIM ticket is HE1 and OTC is HLOGF :)
Going to be a very exciting few months on Helium One with spud approaching fast. PANR is in the doldrums needing more cash, and 88E also needs a fundraise ahead of winter program.
If the AIM traders are bored - as for PANR and 88E its summer, and nothing happening. Try perhaps Helium One Global
https://investorshub.advfn.com/Helium-One-Global-the-primary-helium-explorer-in-Tanzania-HLOGF-42211
AIM ticket is HE1 and OTC is HLOGF
Going to be a very exciting few months on Helium One with spud approaching fast. PANR is in the doldrums needing more cash, and 88E also needs a fundraise ahead of winter program.
Helium One Global rig acquisition "marks the beginning of a new chapter"
Not your normal Natural Gas..........but Gas.........and a Gas that is massively more valued than Natural Gas.....
And interesting drill is ahead...................
Web site : https://www.helium-one.com/
Twitter : https://twitter.com/Heliumone1
London AIM Ticker : HE1
7th July Presentation video
https://www.malcysblog.com/2023/07/oil-price-touchstone-petrotal-angus-hunting-petro-matad-prospex-and-finally/
Touchstone Exploration
It is going to be a crucial week in Touchstone’s history and last night CEO Paul Baay was appearing in the Shares Investor Webinar to point out just how important will be. The strong production imminently starting from Cascadura will give the company ‘5 year visibility’ and more and make it a full cycle E&P company.
With it the company can start to convert reserves into production using the significant technology advances available, the support from the Energy Minister will see production get into top gear very soon and be producing over 9,000 boe/d and making it more of a natural gas company.
So, over the next few days TXP shareholders can expect the plugs to be removed from the two wells at Cascadura and the flow to the newly built gas facilities will begin. And this is only the beginning, CEO Paul Baay was at pains to point out that there are a number of further wells to be drilled, probably at least five with the rig off to drill the next one very soon.
There is much more elsewhere at Coho and Royston but this is the time for Cascadura to shine, the Ortoire block that I was shown a while ago on charts is really coming into its own, the Herrera fairway is indeed that, and over the next few years there are plenty of opportunities to fill up the spare capacity at the gas facility.
There will be plenty of news from TXP in coming days, this will prove that it is going to be a very substantial company with huge reserves and decent production but more importantly masses and masses of upside, yes it could be a stock for 2023.
https://www.share-talk.com/malcys-blog-oil-price-touchstone-exploration-sound-energy-serica-energy-i3-energy-jadestone-energy/
........These are exciting times for Touchstone as the massive development that is Cascadura is now just around the corner, less than a fortnight until first gas from what will be a total game-changer for the company and its shareholders.
The company is in the Bucket List for a good reason and I still believe that the huge upside potential from Cascadura is no way represented by the current share price, my 200p TP still stands..........
June 2023 presentation link below.
They look more and more confident on Krakken.........
https://www.touchstoneexploration.com/wp-content/uploads/2023/06/Corporate-Presentation-June-2023.pdf
Mid term plan is clear.
Cascadura 2 development drill (H2 23)
Cascadura 3 development drill (H2 23)
Royston Development and Exploration drills. (H2 23/H1 24
Krakken and Steelhead and Gaubine Exploration wells. (2024)
That will be H2 23 and most of 2024 activity of the drilling rig.
The excitement is all about to kick off again........
Looks like good news coming next week.............
https://seekingalpha.com/instablog/41272106-activeeurope/5674359-touchstone-amazing-upside-still-to-come#comment-95067304
"I had a recent catch up with management and a few interesting points.
Cascadura start up remains clearly on schedule for end of June2023, NGC are now further incentivised after BP suffered a recent gas production loss of one well offshore, hence the immediate need for gas on the island is acute. NGC are working extra shifts if needed and flying in parts if needed. For TXP part they remain well on schedule and have good visibility on meeting the targets currently. Management are acutely aware of last 2 years missing timelines and I gave them every opportunity to be cautious on delivery but contrary to this they remain resolutely confident in current timelines. First gas transforms the business from a cashflow point of view and moves future drilling to self funded, it should be a material risk reduction point for the shares in lowering cost of capital/rising share price. A move for management becoming in charge of their own drilling destiny has the potential to transform the investment case over the next 18months.
Royston sidetrack well testing. It should be emphasised the first test was a ‘long shot’ but management wanted to see if there was oil present, porosity was only around 6 and no-one internally/drill team/Schlumberger expected anything much. However the next test remains in the sub thrust and has more like 12ish on porosity with a plan to perforate 2 intervals of 30ft each within what they think is much better prospectivity. Any success here in the sub thrust would add reserves and provide a good target for future drilling. The ‘main event’ is clearly the test afterwards which is the intermediate test, previously 38ft was perforated and flowed 500+BOPD. Here there is circa 20ft above and 30ft below last time test for better sand thickness and another section of 100ft below that also can be perforated. Hence we have a lot more sand thickness this time around. The hope would be that both the subthrust and intermediate tests produce some oil flow and maybe intermediate test beats management guidance of circa 500BoPD. If both tests flow the plan/hope would be to put them both on long term test comingled in a combined rate. They would then not plan to test any of the higher zones after the intermediate in this well. However if no flow rates are established higher test zones are in reserve for testing but this would be a plan B type scenario. Key point here really is that there is still everything to play for with upcoming two Royston tests. Depending on pressure they could also opt to put in a pump to help lift the oil given the weight of liquids within the pipe (10,000ft 7inch and 9 3/8inch higher up) above perforation points.
Timing/delay. Once the drilling of Royston sidetrack was complete they negotiated a decent day rate for the star valley rig for a few days to perforate the deepest section to start testing. The crew were then sent home/off island etc as no longer needed and expensive. Actual testing took longer than expected and 2 lots of swabbing plus waiting for the 10,000ft column to refill with liquid and hence the long delay, I’m still a little unsure why it took so long. From the finish of first test it’s not worth the expense of reassembling the star valley crew to use the rig again for higher up perforation and testing. Instead management chose the much cheaper option of once the rig is moved they can use a service rig but this means a delay until new Cascadura pad is finished and the star valley rig can be moved, hence the frustrating elongation of testing timelines.
The star valley rig contract runs from September to September and has a minimum number of days usage per year (also explains why willing to use it for first part of testing), hence they would like to get it drilling ASAP at Cascadura new pad site but equally they would like the certainty of cashflow from Cascadura start up, hence there is a sensible juggling act going on here to maintain a sensible prudent cash buffer within the business. There is absolutely no need for more equity. If all goes well the rig would certainly drill 2 and probably 3 wells in succession at Cascadura and long lead items for production potentially ordered after the first well drilled, taking up to 6months to arrive etc. This would hope for significantly increased Cascadura production during 2024, possibly late summer. Note the 2-3 wells would most likely add to reserves and also move reserves up from 3P to 2P and 1P in a value enhancing manner.
They await license awards. A second well at COHO looks an attractive plan but nothing scheduled in."
Paul Baay gives an update on the Cascadura site progress.
https://www.facebook.com/TouchstoneExploration/videos/172147585709490/
.
https://trinidadexpress.com/business/local/crude-oil-could-soon-flow-from-touchstone-s-royston-discovery/article_076699c4-bd55-11ed-98f6-a7909c6d6dd3.html
Crude oil could soon flow from Touchstone’s Royston discovery
By the middle of April, the country should have a better idea whether Touchstone’s Royston oil discovery is as substantial as the company thinks it is and if it would see an immediate addition to the country’s oil production.
President and chief executive officer of the Canadian outfit, Paul Baay told Express Business the Touchstone 1-X well, which was recently completed, encountered a total section of about 1,700 feet, one of the thickest sections Touchstone has seen in its on-land drilling campaign, and 740 feet of sand that it thinks is prospective.
Paul Baay
The company, however, will not know if it is hydrocarbon-bearing sands until it is able to perforate and complete the well.
In an interview with Express Business Baay said, “It will be about a month before we can move the rig over to Cascadura because we are still building the drilling site, so Royston probably won’t be tested until sometime in April, probably early April, or mid-April and then if it is light oil as we think it is, then it will virtually come on production right away.”
The company recently announced that Royston-1X was drilled to a total depth of 11,316 ft and encountered substantial sands in the targeted Herrera Formation.
It noted that drilling operations took approximately 25 days, which was ahead of schedule and on budget.
Baay added that this is the deepest well Touchstone has drilled to date and also is the deepest well drilled onshore Trinidad in the last 15 years.
“The fact that the well was drilled ahead of schedule and within our budget can be attributed to the best-in-class industry standards that Touchstone is driving within Trinidad, both through the introduction of new equipment, as well as additional expertise that we have added to our technical team,” Baay boasted.
He added, “We are encouraged by the hydrocarbon indications internally interpreted from open-hole wireline logs, which show that the well successfully intersected the Herrera Formation through the sub-thrust level in one of the thickest turbidite sections observed in any of our previous wells. Once the drilling pad is completed at our Cascadura C location, the drilling rig will be moved off the Royston location, and we will commence a comprehensive testing programme that is currently anticipated to begin in April. We will update the market when results become available.”
Touchstone’s president told Express Business that the estimate of being able to produce between 6,000 and 10,000 barrels of oil per day (bo/d) was still on.
He said, “I think those are still good numbers for the field, if these completions turn out the way we want, that’s certainly our target.”
According to Baay, the plan is to put Royston on production while Touchstone drills its next two wells at its Cascadura gas field and then head back to Royston.
“We already have the approval to drill two more wells off of that same pad, so if it works we will come right back over in late 2023 and start the development at Royston, “ Baay revealed.
He estimates that the first well will produce in the vicinity of 500 bo/d and said to get to the 6,000 bo/d to 10,000 bo/d it would mean drilling up to 21 wells in the field and having them simultaneously on production.
“Our pre-drill estimate of what we were looking for here was approximately 500 barrels a day. And we would like to see that from each well, it sort of gives you an idea of what we are looking at, something which at the end of the day is something between 12 and 20 wells in the pool,” Baay noted.
He said the hope is to have all of the wells drilled and on production by 2024.
If successful this will be good news for Trinidad and Tobago which has only been able to hold production at close to 60,000 bo/d and not increase production, even at times of high prices.
On the issue of the Cascadura gas development, Baay said the company will be ready to send the first gas whenever the National Gas Company (NGC) is able to receive it.
“We got notified by the NGC that their pipelines are going to be ready by the end of June, and that’s a little later than we had hoped. We will probably be ready by the middle of May. We will have our part of the facility all done and ready by the middle of May so we will make sure we are ready and whenever the NGC is ready we can send them first gas.”
Touchstone recently told investors that the NGC will not be ready to receive gas from its Cascadura field until June 30, almost two months behind schedule.
Touchstone said, “On February 24, 2023, the Company was notified by The National Gas Company of Trinidad and Tobago Limited (NGC) that they expect to be ready to receive first gas from the Cascadura natural gas and associated liquids facility on or about June 30, 2023.”
Touchstone said it remains on track to complete the Cascadura facility prior to this date to ensure production can commence as soon as NGC is in a position to receive the first gas.
Baay told Express Business the plan is to start at 60 million standard cubic feet per day (mmscf/d) and then drill the two additional development wells that Touchstone intends to bring on at the end of 2023.
He said, “We will like to see that facility be about 100mmscf/d by December 31, 2023... The target would be somewhere between 150 mmscf/d and 200 mmscf/d I think, which is ultimately where we want to get to on that facility. We need to do some more drilling to get to that high end of the plan.”
That 150mmscf/d does not include its Coho development which is choked at eight mmscf/d.
He said, “It’s been running closer to about eight mmscf/d and that’s mainly due to the pressures going into the Shell facility. The well is still what we call choked back to meet the pressures into the Shell facility. It is capable of much more but that’s all we are able to run it at right now.”
https://www.facebook.com/TouchstoneExploration
Touchstone Exploration Inc. 16 h ·
The team is working hard over the weekend to transport equipment to the #Cascadura facility. The compressors and separators are currently en route with 30 employees and consultants helping to facilitate the move, ensuring that #health and #safety are at the forefront.
Proactive interview with the CEO.
Placing done, cashed up.
I see a potential 200%+ in the coming 6 to 9 months. Coho already online, Cascadura online in Q1 and Royston sidetrack to do.
Video interview below link :
https://www.directorstalkinterviews.com/touchstone-exploration-to-accelerate-exploration,-development-and-production-opportunities-video/4121093842
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#PANR $PTHRF Looks like a possible UK time 2pm surge has happened, which often means a very good news RNS is going to be released at 7am tomorrow. Lets see. #oil #oilandgas #USA #Alaska Pantheon Resources flow test update in the morning ??
Looks good in the video.......tankers of oil moving, produced gas being flared.........all good.
#PANR $PTHRF One loaded with oil tanker leaves as another empty comes back for more....flow flow flow that oil. @PantheonResour1 #oil #oilandgas #alaska #usa #oott Produced gas being flared in the background. pic.twitter.com/a1PITsgxMU
— Proselenes (@Proselenes) December 7, 2022
Flare back on........
Looking good for Flare is back on.....which means oil is now flowing into the Production Facilities....
$pthrf $panr
— glomerulus (@ijduwa) November 19, 2022
oct8-13th flare was on. See the yellow on the spot. On oct25th the flare is out. see the purple/green on the spot. Nov 6th looks alike to Oct25th,still no flare. Nov 13-18th has the yellowish image back again. Nov 13 & Oct 8th are comparable. White dot is my ref. pic.twitter.com/41Z2EvXNcL
Read the transcript of the AOI conference all.....lots of info.
https://seekingalpha.com/article/4558086-africa-oil-corp-aoiff-q3-2022-earnings-call-transcript
Here is the part on the current delay :
Matt Cooper
Okay, great. And I just wondering if you could give a little bit more color on why the Gazania well reserve has moved back slightly?
Keith Hill
Yes, I've got two reasons. So then, I guess I shouldn't go into too much detail. But, there was a weather delay at the beginning. And then the drilling has been taking longer than expected. So we're about 15 to 20 days behind prognosis on it. So far, operations are ongoing. There's no serious problems with the well, and it's taking longer than one night.
As far as I am concerned.
When good things happen on drills - spikes in the share price happen - price rises.
When bad things happen (like mechanical issues) - share drops happen - price falls.
The Gazania-1 well is a 25 day well on a dry hole basis.
30 days on a discovery in either the Namaqualand or Gazania targets.
With sidetrack into the Pelargonium this would extend to 45 days.
Now we know :
No oil in Nam/Gaz then no sidetrack. So if they are sidetracking then its not a duster.
The share price has risen strongly, with spikes and frenzied buying at times. That points to "good things" at the drill site.......and not any problems.
So as I have said all along, I am more than happy to hold all my ECO shares and have not sold one.
Regardless of Gazania result.......we still have 3B/4B farm out coming with drilling, as well as Guyana drilling, as well as possibly Namibia drilling. All of which will push the share price past what it currently is anyway.........
Fingers crossed we will soon hear of a "Major Oil Discovery"............