Touchstone Exploration’s latest update from Royston-1X is likely to be viewed as disappointing, house broker Shore Capital said but noted that its valuation model assumes only a modest contribution (300bopd gross IP) from this well.
More importantly, at Cascadura, Touchstone reports that the facility is currently undergoing final commissioning, with the company providing a breakdown of the facility’s current commissioning status and confirming that it anticipates initial sales volumes next week.
Finally, in relation to Coho, the company continues to see a good performance from its gas production well, which is currently being restricted to manage flowing pressures, prior to the reconfiguration of the producing intervals to optimise production once Cascadura is onstream.
ShoreCap said it will adjust its model once Cascadura is in production although with this continuing to appear imminent, its risked NAV estimate is maintained at 195p/share.
“We continue to see excellent scope for patience to be rewarded as demonstrable progress at Cascadura helps to close what is obviously a substantial valuation gap.”
Shares were down 8.5p at 67.5p.