Touching on Touchstone

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The information contained herein is accurate to the best of the author’s knowledge, but the material and interpretations contained herein should be independently verified by any party using this information as part of any research, editorial, or decision making process. Any views expressed here represent the author’s opinion only, and as such readers should do their own research and come to their own conclusions if they are using the opinions contained herein as part of any larger due diligence process. The author may have long or short positions in the companies mentioned and may be buying or selling in the market depending on which way the wind is blowing at any given moment. Opinions are subject to change without notice. Prospective resources, predictions, comparisons, financial projections, and extrapolated metrics are, by their nature, subjective and interpretation dependent. The topics covered are highly speculative and involve a high degree of uncertainty and risk. Speculative companies can and do go to zero. By using this site, you agree that the author(s) and Hydra Capital is/are not responsible for any damages incurred by the use of the presented materials. Anyone reading these blog posts should know that they are the author’s thoughts and opinions, which are not to be confused with or construed as research reports.

(Disclosure: The following represents my opinions only. I am not receiving any compensation for writing this article, nor does Hydra Capital have any business relationship with companies mentioned in this post. I am long TXP.)

Touchstone Exploration (TXP.TO, last at $0.47)

I’ve casually followed Touchstone for years and have never really cared to own it until recently. It has always seemed “cheap” based on its cash flow and reserves from onshore oil production in Trinidad, but there was never anything to get me interested. A while back, the company announced a gas discovery at its Coho prospect which eventually yielded test data suggesting that the Coho-1 well was capable of producing at an initial rate of 10-12 mmcf/d. I found that intriguing, but it didn’t pull me over the fence.