Touchstone Exploration (TSX:TXP) — Investor Presentation

0:00 Good afternoon, and welcome to the TOUCHSTONE EXPLORATION INVESTOR PRESENTATION. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Paul Bay, CEO. Good afternoon, sir. Thank you. Thank you very much, and welcome, everybody. I know you said good afternoon. I'm in Calgary here today, so it's actually good morning as well. So I'd like to welcome everybody. This is the first of our what we anticipate being quarterly calls following our release of our quarterly financials yesterday.

0:48 So look forward to those on a go forward basis as we go. We thought it's a great opportunity to give everybody an update, maybe give you a little more insight into some of the things that are in the in the quarterly. So I'll just run through this fairly quickly

1:01 and then open it up. I know we've got a bunch of bunch of questions, and we can certainly we'll get through as many of those as we can today. Just for anybody that's on that's, you know, a little bit bit new to the TOUCHSTONE story, you know, our focus is remains in Trinidad, onshore in Trinidad. We trade both on the Toronto Stock Exchange and on the AIM in London. And and, really, the what we've done over the last, thirteen years is is built a company here that is designed to really have a nice five year view of what we can do going forward. And, you know, it's been the last year and a half has really been focused on bringing on some big, discoveries that we made three years ago and, and get those on production. And this quarter is really interesting because it's actually the first quarter that we really see, a glimpse, if I'll call it that, of what of what the island's capable of and what we're capable of doing. The the main reason that we really like Trinidad is it's in that optic end of the Venezuelan Basin.

2:03 You know, the rocks here are great. And and if you look at our track record, we've drilled 70 plus wells, and and we really have only had a couple of disappointments in there. So it sort of talks to the the quality of the rock and the hydrocarbons and what we see. The other thing about Trinidad is it is a great market to be able to sell both gas and oil. Very large petrochemical business there that's right now is short probably about a BCF and a half a day of gas production. So that's why you can you can see that once we get these fields on production, they're basically flowing at a 100% load factor, which is is really a nice thing to to see. And on the oil side, because of the infrastructure on the island, we can tie our oil in and and sell it on a daily basis. So those are, you know, those are really some really key things. And Trinidad is very much pro oil and gas exploration, and that that, you know, I think is something else that is is really advantageous for us. When we look at our track record, you know, we continue to do two things.

3:03 We we we focus on some of our short term objectives, which is getting production on, creating cash, and then the second part of the objective is to look beyond that. You know, things always take a little longer than the in Trinidad and and and in a lot of these international jurisdictions. They take a little bit longer just with process and things. So we always have to be looking out a little bit further, and that's something that we've been doing. And when you look at what we've now put together, you know, we're working on things today that are gonna happen a year or two years from now and and just keep that pot full of of opportunities. The the key thing for us is to keep a balance in what we're doing. And and up till, you know, probably last year, we were really an exploration company. And, you know, that's a fairly high risk model.

3:49 The transition that we really see now is now we're both a development company and an exploration company. We've got a really good base production level, and then now what we can do is is fully fund our exploration program. So it's been a nice transition. It's been you know, as everything has maybe been a little slower than we would have liked, but it really feels like we're there now. The key takeaway, from today, is really the this is the start of us being able to utilize all this excess capacity that we have with the the two gas plants and all the oil facilities we have. We've got about 42,000 BOEs a day of capability, and the the target now is just to focus on filling those up as much as we can as quickly as we can. So give you a little bit of the highlights.

4:34 I'm sure most of the people on this call have read through the highlights in the release yesterday. But but, basically, what happened in the final month of that quarter, so in September, the two wells came on at Cascadura, and started to add production. So the the production uptick you see, this 167% increase in production, over the quarter of last year was really the result of the Cascadura wells coming on, in that in that final month of the quarter. And it obviously increased our production sales. It increased funds flow. And I think the other thing that's really interesting when you see you know, we now bring those assets from our exploration accounts into our production accounts. And you can see that what that does is it also flows through for positive earnings where we saw almost a million dollars of of positive earnings in the quarter. So I think that talks to profitability. It talks about long term profitability, and that's really a a key thing for us.

5:32 On the debt side of things, you can see our debt sitting at about 29,000,000. That's a combination of the term loan, that we have in place in our operating line. And I think it's important to kind of point out that over this, you know, over this last year, we paid down that operating loan or or the term loan, by about a million and a half a quarter. So, you know, even though we've been building these facilities and we've been doing all these other things, we also have been paying down the the term loan debt, which is really important, I think, long term for us to look at. Gives us the flexibility going forward if we wanna ramp the program up. It gives us lots of flexibility on the balance sheet. We are now the largest independent producer onshore in Trinidad, and that you know, I think that that's something that we've been striving for for for quite some time. But when I talk about that's the short term, the long term is this particular map where we talk about, you know, these fairways that we've identified, the land positions that we've now put together, and at various different stages, we've got the Orotois block, which is kind of moving a little bit from an exploration block into a development block, although there is lots of exploration drilling to do. Then you've got the Rio Claro block, which is near term exploration, and then and Charuma, which are a little longer term expiration opportunities.

6:48 And that that kinda talks to that layering in of of the the things that we wanna see as we go forward. But the two big things for us and and really the changes in 2023, and I know a lot of people have heard this, is we we brought on the Cascadura facility, and we brought on the two wells. The first well came on on September 6. The second well came on in September 14, so right at the end of the last quarter. Really also wanna emphasize that we built that entire facility with no lost time incidents. It was a really great operation. Took a little bit longer than we, you know, initially anticipated, but I think done safely and and having it in the position that it's in now is is a real, you know, a real positive for for us and our shareholders when we do those things.

7:37 We talk about current production. I'll I'll talk about that a little bit more. We originally brought these wells on, and then we've had some issues with the with the facility. What we wanted to do was have this facility be a closed system so that there would be no flare on the on the system. To be honest with you, the the it was designed to really, really capture all the gas that we had. Because of some of the compression that we've had in place, some of the challenges that we've had in place, we haven't been able to ramp up the wells as quickly as we would like to. I I think I'm confident today saying that that ramp up is gonna start here in the next couple of weeks. And as I mentioned in the in the press release, by the end of the year, we'll see we'll see volumes in there that we wanna see. The target is to get to that 60,000,000 cubic feet a day.

8:28 That that is our our target. You know, I've been asked a lot about whether we're gonna ramp up beyond that. I think it's fair to say at current pricing, we we really don't see a a need to do that. We can fund our program fully out of what we have in place. So, you know, that's gonna be our target, and that's where we want to that's where we've we've always said we want to get to, and that is where we wanna get to. As far as preparing the development drilling for the next wells, Cascadura, that's already the the the crew is in the field. And right now, what they're trying to do is certify the well the rig. It hasn't drilled in quite some time. It's sitting over the location, so it has to be recertified under the operations. Soon as they're done that, then we'll we can commence operations. The C 01, this is also referred to as COURA. I know some people were asking whether this is Coho. This is not Coho.

9:17 This is C 01. This is one of our legacy properties on the West Side of the island. We've got two commitment wells to drill there. Soon as the rig's ready to move there, the lease is ready to go. It looks like now the operators told us that might be in December. Realistically, it's been the first quarter of twenty twenty four. So what are our goals between now and the end of the year is to optimize the production at Cascadura. I think that's well underway. It would have been nice if we would have been able to kinda ramp things up right off the get go, but, you know, these things happen. There's nothing we can do about it, so that's that's what our target is. The workover scheduled at Coho, we did successfully shut off the the water at Coho for a matter of hours, and then the the downhole assembly that we had in place didn't work. Full credit to the service company.

10:03 They've stood by their tool, and they're they're importing another tool. And in the next month or two, we'll we'll run a second tool down the hole and and do a second attempt at their cost. So although there's a little bit of a delay, it's not gonna cost us any more money, I think, which is clear. And then the workover program at at Royston, the plan there is probably move there in the next couple of weeks, and the target there is to just isolate the upper two most tests and and test those individually. You know, what if they work great, that would be that would be great. I I think I I wanna cautious every caution everybody on that that, you know, although there's great indications on the logs, until we have that test done, I just don't think we can really comment anything on that, in in what we see. So that that's gonna happen in the next couple of weeks, and likely won't hear anything on that till the beginning of next year.

10:55 At Cascadura, this is a a map that structure that everybody will have seen in our presentations before. But, basically, what you can see there is the CAS two and CAS three wells that can be drilled off of the new pad. They're basically drilling, to the northeast of our existing, two wells. And I think it's important, just to talk about Cascadura that's on production right now, the the s t one well and the deep well. They're not producing from the same sheet or the they're in the same horizon, but they're isolated from one another. So you know what? At at this point, when we're talking about the kind of volumes that we're talking about coming out of there, it's really one straw into this pool. And I think it's really important to to understand the magnitude of of how big these wells are, and and certainly nothing's changed on that. When we look at CAS two and CAS three, you can see they will go down, test all the way down through the deeper zones in the Herrera, and then we'll, we'll commingle those when we produce them. So we're pretty excited about about those that program getting underway as soon as all the the approvals for the rig are done. So we're looking forward to that.

12:02 And, you know, that that'll obviously bring those back to the plant and tie them in as quickly as we can. This is the, c o one development. Probably haven't seen this map before. It really, what it is is I think what it does is it shows all the different sort of blocks within our properties, on the West side of the island there. You know, there's these big sheets, but they're all broken up by all these little faults. And what we can do is identify these these smaller compartments and then drill them up. So those two red stars will be the two wells that we'll drill from the same pad, just two bottom hole locations in what we see. So what do we got? You know, this is the start of the five year strategy. We've got 229 locations. We've got 50 of them high graded. We got the two rigs that we got planned initially for drilling at C 01 and drilling at Cascadura.

12:52 We've identified development drilling at Coho, which will obvious, would happen in 2024 as well. And then, you know, with that in place, we we see 20,000 BOEs a day of production growth as we go forward in in what we see. The other thing I wanna talk a little bit just quickly about is our strategy for going forward on the gas contracts. We obviously have a lot of gas that's licensed under this gas contract. Current pricing on that contract is disclosed in the press release. And, you know, I think we have to be a little careful that we don't accelerate too much of this production on the front end when we're dealing with, I would say, lower prices. What we really wanna do is we wanna make sure that we're getting full value for for that gas as we go forward. So, you know, we we wanna make sure that we've got all the proper contracts and pricing in place to optimize what we see for all of our shareholders.

13:46 So the investment case, you know, we've got lots of opportunities here to increase the production levels, Cascadura, the Coho water shut off, the development at Coho, additional drilling at CAS. You know, I think the the good thing about that is we're inventory rich now. With the production now coming on the way we see it, we can fund these operations. We've got the land to do that. And I think the most you know, one of the most important things is anything we find can go to market as quickly as we can get it to market. So that's that's kind of a quick little summary of where we're at. I'll I'll maybe go and move into some of the questions. I'll just go back here, leave that slide up. These were some of the presubmitted questions. The the first one is, can you confirm how often, how regularly you update the market on Cascadero and cohost production? We would see doing that quarterly. You know, if something were to go completely sideways, obviously, we're obligated to to tell you that. And and conversely, if something's going really well, we obviously have to do that as well.

14:48 But I I I think that these are just gonna be quarterly updates, and you'll get a really good feel of of consistency on that. How much will the CapEx cost to take Cascadero facility 90,000,000 cubic feet a day? Nothing. The the the facility right now is capable of 90,000,000 cubic feet a day, so there's no additional capital costs in that. It's there. That's what it's designed for. There would be additional capital cost to take it up to the full 200,000,000 a day, and I think that's around 5 or $6,000,000 of additional cost to take it up into that. The Cascadura the next one is, will the Cascadura c drilling include looks at the deeper thrust? Yes. We'll take that down as far as we can. If you recall when we drilled the first well, the only reason we didn't get deep is we couldn't control the well work because the gas was coming at us.

15:37 I I'd love to have that same problem in the next one that we're drilling, although we're putting in place some different parameters to hopefully evaluate that. But but, yes, we could get all the way through. The idea will be to get down as far as we can. Next question. Is there a solution in sight for Shell Carrappell Ridge gas pressure issue? Yeah. I think there the the solution's gonna be pretty simple on our end. If we can shut off the water, we'll get some higher rates out of that well, we're hoping. And then quite frankly, it's just to have more straws into that pool, and then we can push that through the shell system. So Coho is designed for the facility is designed for about 24,000,000 cubic feet a day. We've got the two development wells to drill there plus the Gibbah exploration well that we'll we'll test.

16:25 And and our thinking right now is that we should be able to get that to the full 24,000,000 a day of capacity. That would be our that would be our objective there and what we're looking at doing. Shell's been up and down. They've been having some plant trouble at the plant. The good news about that is it gives us an opportunity to look at our wells and see the pressures, and that that that first well at Coho really does bounce back beautifully. It's a it's a nice little well. So, you know, we've taken over 2,000,000,000 cubic feet out of there since we brought it on production. So although it's the smallest in the portfolio, it gives you an idea of of where these wells kinda will level out at. How long has the recycle been compressed or not been operational? Well, really since day one, to be honest with you. We we ended up using buying used units that had been refurbished, And the reason for that is the lead time of buying new units would have put us well beyond what we wanted to. We actually ran them in Houston before we put them on the boat to send them over. And either in shipping or moving them from the dock to the field, whatever, they seem to have got pretty beaten up.

17:30 And so it's taken us quite a while to get them all back up and running. But, you know, I think what we're seeing now I I hope you're kinda reading through a little bit as we're starting to crank up these wells. You'll see the you'll see the those units are that that's hopefully in the rearview mirror in what we're looking at now.

17:53 Will I update the market immediately on the r and s upon completion of the final facility commissioning? Probably not. I think what we'll we'll look for is we'll look for some sort of update in the new year once we've we've got some other things. We'll just we'll continue to give operational updates as as we go along. I think the most important update that you'll see between now and the end of the year is the week of December 17. We'll have a full forecast for 2024. So that'll be the first time that we've done that, so you'll get a really good look at what's going on. And I guess in answer to that question, it'll it'll also, hopefully give everybody comfort as to where we are at Cascadura. Does your analysis of the Cascadura field production to date continue to confirm your preproduction assumptions about the long term field production profile?

18:41 You know, I think bottom line is these are big wells. You can see the volume. You know, we even when the wells choke back, we're doing 48,000,000 cubic feet a day. So I think that that gives you a really good idea of of the capabilities here. As I mentioned before, these two wells are producing from different zones, so you really only have one straw into the pool. So the bottom line to that is yes. I mean, these are these are world class wells. There's no doubt about it. So, you know, as we've always said, we're gonna need more wells to drain this pool, and that's why we gotta get back to the drilling program. Would it be a 100% correct to say only mechanical fixable issues are holding back production of Cascadero? No. As I mentioned, at Cascadero, we are choking the wells at surface. Right? So that's that's the main reason that they're they're choked back at this point.

19:33 When do you anticipate reaching 90,000,000 cubic feet a day production at Cascadero? I I I wouldn't see that, to be honest with you, happening until, you know, late twenty twenty four or or after '20 midyear twenty twenty four. And there's two reasons for that. It's one is pricing. As I mentioned, we don't really wanna do that. And the other one will be we really don't need to blow this down any harder than we need to to fund the operations that we've got. So I think people need to, you know, need to start focusing on the base production, how we best manage this field, how we fund our operations, and that's really what we're looking at doing. I've answered the next one here, so that's around production volumes. When exactly is the work over at Royston schedule? The the rig right now is anticipated to move in the next couple of weeks.

20:24 So that's that's sort of the schedule for Royston. As I mentioned in the press release, our plan would be to get that all that work done by the end of the year, and the same thing at Coho would be to get that all done at the, the end of the year. The question here is, you mentioned c o one. Is that Kura? Yes. So I apologize for the confusion on that, but c o one is our COURA one property, and the, COHO is, at the Origua property. So that that is the way those are.

20:59 Next question is, can the compressor be repaired or modified? I I I'm not gonna answer that again. I I I think that's in the rearview mirror for us now. So that's I think that's a good good thing. I'm not gonna promise anybody until we've had a couple of weeks of of us being able to do things on it, but that's that's where we're at there. Is there any limit on how long TXP can flare before the compressor is sorted? No. There's no limit on that right now. We're working with the government. And let's let's be clear. These flare volumes, you know, aren't that significant, but we we really wanna do the best thing on the ESG side that we can. We really wanna, you know, have zero emissions wherever we can. And and anybody that's read our ESG report, you know, we look at doing that on everything that we can. So that's that's that's one of the big drivers for us here.

21:49 What's gonna be the phasing in for the ramp up of the current CAS production? It will ramp it up between now and the end of the year. I mean, that's I think that's a reasonable estimate in what we wanna do. We won't we don't certainly don't wanna do any damage to the reservoir, so we wanna have our guys do it over time. Once the Coho 1 workover in late November is completed, what will be the incremental increase in volumes? We really don't have any idea in that because we there's just no way to model how much gas that that current water volume is holding back. So we'll we'll kinda wait and see on that one, but but that'll obviously be disclosed in our December December update as well. An average realized crude oil price, the 15% decrease in 2023 was impacted with a widening of the realized price differential in relation to the Brent.

22:38 Pricing has widened from a 15.7% to a 17% discount. Can you elaborate on that differential? Yes. We've noticed that widening as well. We are a price taker from Heritage. They do an internal calculation based on the local blend, and we really don't have a lot of input on that. And and that's why the team discloses it in the MD and A is it's it's just, it's there. As I say, we're a price taker. We saw it narrow a little bit again last month, for October. So it does look like there's some seasonality to it a little bit, but I think right now is that, you know, that 16 to 18% is probably the right number to be thinking about. The question here is,

23:32 when is Cascadura gonna obtain normalized production with the current wells? Again, between now and the end of the year, that's our our target. That's what we'd like to do, and I I think now we can start to do that. So I I don't mean to be sort of evasive on that, but but, basically, we were waiting on trying to get those compressors fixed before we started to line out the wells. Now we're gonna start to line out the wells between now and the end of the year. So we'll have a really good good answer for you on that one. What are the expected volumes for the two c o one wells? Right now, we run those models on about 75 barrels a day. They are offsetting probably one of the best wells we've got out in those blocks. There's a particular well out there that's still doing about a 150 barrels a day after multiple, multiple years.

24:20 You know, these aren't big game changers, but when you look at the rate of returns on them, they're they're certainly not like our Cascadero or Coho operations, but they are commitment wells, so we have to go ahead and do that. What's the cost of the Kura wells? They're about 1,000,000.25, 1,000,000.5 each. So, you you know, they're they're they're not insignificant, but they are they are, you know, good rates of return on them, especially with current oil price being where it is. The other thing I should mention on those particular wells is we're not moving the rig from Cascadura down there. Let's be clear. We're we're using another rig, smaller rig that's located on the South end of the island. So these programs will run independent of one another. It it seems there's not a keen or aggressive to go to 90,000,000 cubic feet. Why is that? You know, I I'll be real frank with you. I don't wanna sell a bunch of this gas at at, you know, the the current price that we're at.

25:17 You know, I think we gotta take a longer term view of that. And, you know, I'm asking shareholders to to bear with us so that we can have some reasonable discussions of what we think is the the right price for the gas. We think we're we're supplying some of the cheapest gas on the island right now to NGC, and we don't think that's right. And it doesn't make a lot of sense for us to to give that gas away, especially on the front end of the curve. So, you know, we're gonna ask everybody to bear with us while we while we do that. What is the debt outlook? Will key up TXP keep debt on their capital structure? Yes. Absolutely. We will. If you look at the MD and A, we, you know, we target something less than two times debt to cash flow. Scott and I are really you know, I think what we'd like to do is keep that around one times. And if you look at the 29,000,000 that we've got in place, it gives you a kind of a good idea that that, you know, we're we're striving for that, especially when you're gonna look at the q four annualized.

26:15 You know, you'll get a really good idea that we're we're well within the parameters that we've set out internally. Why has Coho underperformed from the onset? That's a that's a good question. I think, you know, I think there's sort of two things at Coho. Certainly, the water, volumes were higher than we anticipated, at the beginning. But what we now know from the tool that we were able to run after we produced it, that that water is coming from down below in the in the wellbore, and we need to shut that off. So let's let's get that packer in place, get that isolated, and then I think we'll we'll get a much better idea as to what the real potential for that for that particular well is. But but also don't forget, that was the smallest that was the smallest target of any of the ones that we drilled on the exploration block, and it was really more of a proof of concept in what we've done. And I think the other thing is when you look at the three d data that we had, we haven't drilled in the optimal spot yet, and that's kind of where we're gonna go with the next particular well. It really was a proof of concept well. So, you know, bear bear with us a little bit on that one while we while we continue to do that.

27:27 90,000,000 cubic feet a day, I've I'm I keep answering that question. I I hope I've kind of addressed that as best as I can. Do you have any upcoming news for shareholders to look forward to in the next year? Well, I I think we do. I think, you know, when you take a look at the exploration blocks that we've got, you know, we're gonna have, the Cascadura development well going. We'll have the, the wells at C 01 ongoing. We're gonna have, the development at Kura going at Coho going on. I I think the real excitement for everybody to start to look at is the free cash flow, that this generates and, as we get these wells lined up. So, you know, I think the story is different. You know, it's not gonna be these exploration wells, but, hopefully, what we do is we take some of those peaks and valleys out of out of the the roller coaster ride.

28:16 And what we can do is is have this as a a nice base development. And then as we drill exploratory wells, we can add add to that to that value as we go forward.

28:30 When does the current gas contract expire? It actually doesn't expire. It's for the life on the on the lands, but there is a five year, reopener for pricing. So it started when Coho started production back on October tenth of last year, so we're we're roughly thirteen months into this particular contract. So, you know, there is that price renegotiation. And then the the other part is any of the new lands that we get. So the Rio Claro Block, Sapparo, Shuruma, those all would have new gas contracts on them. So they could theoretically have different different mechanisms. What is your latest thinking reason with the Royston no flow and the next move to put it to pump? Yeah. I I wish I wish we had a a really good explanation as why we don't think inflow. It certainly looks on logs like it should be inflowing, but it it it's not. And that's why we wanna isolate these two zones. The one at the top that Slumberger identified is the the the the best of the bunch, and we wanna see if that if if we can do that. They probably will be on pump. We have a pump there, so that'll all get get put into place, and then we'll figure out what the flow rates are. There is discussion about whether we should look at fracking these, and fracking is easy to do on the island in the sense of from a permitting point of view. The equipment is offshore equipment that you'd have to bring onshore, so it's not cheap.

30:00 And we'd wanna do some more modeling. It's one of the other reasons we wanna isolate these zones is we'll get some good pressure data. We'll get some you know, we'll find out what what what type of oil we've got, what type of perm we've got, and then we can possibly model up a frac. But right now, that is not in the budget at all for us in what we're looking at. I've I've answered there's there's questions in here about the the production ramp up. I think I've answered that. When will you start the continuous drilling program?

30:37 You know, I think what we'd like to do is, you know, if everything kinda goes as planned once we get kicked off at Cascadero, we can certainly drill those ones as a continuous program, and then we have to decide where we move after that, you know, whether we wanna move up to Charuma, and that'll depend on having the license signed, all of those great things, whether we go to Rio, again, depending on whether the license is signed. I know the team's been working on moving a little bit South of Cascadura to a prospect called Kokanee that looks pretty interesting. And if it were gas, you could bring it up into into the existing system, or we could go back over depending on the results of Royston. So I I think when you talk about a continuous drilling program, what we wanna do is find out where the opportunity is, and then we'll move move to wherever that is.

31:24 How long is the current deal with National Gas Company? I think I went through that one. I think everybody should have a pretty good idea on that.

31:34 Have there been any water coning issues in similar fields in Trinidad? If if you're referring to if the question if that question is around Cascadura, the only real look alike field that we have is to the south is the Shell field, which is basically in three different blocks, and, no, that has not been an issue in any one. Those are it's been pretty well just defining the curves on it in what we see.

32:05 Malcolm has asked a question. Is there a problem with the compressor design? I think the answer to that is yes, obviously. I think there's both been mechanical and a design issue. And so, you know, we've had to design a little bit in that in the field as we've gone along in in what we've done. So question here, is there any progress on the land asset exchange? They continue to push along, and and this is a really classic example of how things take longer than we would like them to, you know, working through the the system in Trinidad. And, so that's why we need to have more things in the pipe, so that we've always got something new coming down. But, they're moving forward. There there doesn't seem to be any roadblocks. It's just the different levels they have to go through in the chain. Somebody's asking if the asset swap is completed.

32:52 No. Not yet because those still need final government approvals. It gets to what I talked about. Mentioned that Coho could should reach or could reach 24,000,000 cubic feet. When would you see that happening? Well, you know, we wouldn't drill those Coho wells until sometime in 2024. The the thing is they're being drilled right on the site, like, literally next to the plant. So the tie ins on those would be a couple of, you know, at most, a couple of months after they were drilled. So those would come on very quickly, and that's why they're getting moved up in the in the in the range of what we see and also the results of what we're seeing. Any quest question, is there any water at Cascadero? The the strong answer to that is absolutely none.

33:38 What is the daily FCF at 60,000,000 cubic? I'm not sure what FCF they're looking for there. Oh, that's possibly cash flow. I'd like to defer that until December 17, and then Scott will have all of that information in our forecast for next year. Well, that's just I'm just kinda the bunch of these, I apologize. I'm just reading these as we go on a bunch of them. I've kind of asked. This is an interesting question. What is your fair view what's your view on a fair gas price in Trinidad? You know, we're all covered by NDAs in Trinidad, so I have to be a little careful. But there are some parameters that we're seeing of some of the contracts that have been renegotiated and have been made public. And, you know, the only one that I can sort of direct quote on is we we do see in the, EOG report that they their offshore price is about $4.25, and that was renegotiated about a year and a half ago. So kinda gives you an idea of where the goalposts are, and I think, hopefully, people can realize that that's a fairly big gap from where we are today, and that's a lot of cash. And, you know, I'll I'll let everybody make their own decisions on that one, but I hope everybody can bear with us while we while we work on that.

35:07 Would CAS two and three fit into the current five year pricing contract or renegotiate it separately? CAS two and three would be covered in the existing contract. But if we were to drill a well, let's say, on the real Claro side of what we think might be the CAS structure, it would be in a new gas contract. What is the clearing down to Patsy? Patsy is ready to go. The rig's sitting there. It's fully concreted. It's literally ready to go. So it's just a matter of the Star Valley guys are in country right now. They're having to do the annual or semiannual X raying of all the rig and getting all of that done. So they're doing that, and we'll figure out, when they're done all of that, what we can do. We didn't really wanna get that started till we knew, you know, we had everything up and going the way we've got it going.

35:55 Another question here. Were the compressors fully tested and certified by the manufacturer prior to delivery? Yeah. As I said, they were referred compressors. They were run-in Houston. And as far as some of the warranty work on them, that's obviously a battle that we're gonna have going forward on them, but we are we are having those discussions for sure. You know, in hindsight, it would have been nice to have bought brand new units, but the lead time on them just didn't make sense.

36:24 I think I'm down. The last question here is liquids line plan from a pad. Yeah. That's a really good question. We originally were gonna build a liquids pipeline, from the facility to pick up these liquids and take it down to the pipeline. I think right now, we're actually with the property swap that we've done and the Ballata facility being so close, right now, we're thinking that we'll just continue to truck, those volumes, as we go for sure. Question here. Did I understand correctly? Scott will answer the financial questions on December 17. Yeah. In essence, what what we've told the market and what we continue to say is that we'll have a full plan for 2024 that'll be laid out to you on December 17. So that'll include cash flows, CapEx, volumes, all of that kind of stuff. So, you know, by then, we'll we'll know exactly where CAS volumes are. The coho recompletion will be done.

37:22 The two wells will be well, probably not drill both wells at at c o one, but but we'll have a really good idea of of where we're at on that. Last question here from William. Is TXP getting paid for the gas on time? You know, I've been asked this question a lot. What I can tell you is we've actually been paid early for both months. So NGC has been terrific partner. Heritage has been paying all of their cash calls. You know, and I think this talks about the real opportunity in Trinidad. Right? Like, there's a shortage of gas. They want us to be there. They are working with us on everything they can, to to to make this happen as quickly as we can. You know? It it can be very bureaucratic. It can be, you know, frustrating at times, but this is a country that is in the oil and gas business. And, you know, we're now the largest onshore producer here, and it's, you know, it's it certainly gives us an opportunity to to do it. And and, you know, like, for instance, these the CAS facility that's now there, you know, these next two wells, CAS two and three, that you know, can we drill them back to back? The answer is, yeah. We can. Like, that's we've actually got four locations on that location.

38:34 If things kinda go as planned, you know, we wanna drill this up as quickly as we can and get it on production as quickly as we can. So Perfect. Paul, thank you very much for that. Let me just jump in there, and and thank you for addressing those questions from investors. Of course, the company will review all the questions sent to today, and we'll publish those responses on the investor meet company platform. But just before redirecting investors, provide you with the feedback, which I is particularly important to yourself. Paul, could I just ask you for a few closing comments? Yeah. Sure. I'd I'd be happy to. And I I I apologize if I'm a little evasive on some of the questions around Cascadero volumes, but I I don't really wanna negotiate the gas contract through the public market. Know, I don't think that's the right way to do it, but I hope shareholders get an insight that, you know, this is a twenty year project that we have here. We wanna make sure that we're optimizing the value of it to our shareholders and that we're not getting penalized.

39:27 And so I just I just, you know, really ask everybody to kinda bear with us while we while we manage this world class asset as we go forward. And then on the backside of that, you know, the opportunities that the teams put together from a land point of view, from a drilling opportunities point of view, It's just it's just a a really exciting, you know, five year project that's got some short term catalysts. And the nice part about it is it's fully funded, so, you know, we can speed up and slow down the program based on on where we are in the cash, and that's it. A really unique and a really strong place for us to be. Perfect, Paul. Thank you for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations?

40:19 This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of TOUCHSTONE EXPLORATION, we'd like to thank you for attending today's presentation, and good afternoon to you all. Good morning to you, Paul, as well.