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29 Nov 2019
Touchstone Exploration - Coho to boost cash flow in 2020
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Touchstone Exploration - Coho to boost cash flow in 2020
Touchstone Exploration Inc (TXP:LON) | 43.0 -0.2 (-1.1%) | Mkt Cap: 100.7m
- Published:
29 Nov 2019 -
Author:
Jonathan Wright -
Pages:
9
These are exciting times for Touchstone, which has delivered early success from the first of its four-well exploration programme, Coho-1. This validates its geological model and materially de-risks the much larger Royston gas prospect, which we value at ~12p/sh on an unrisked basis. Coho is highly profitable and will materially boost 2020 cash flow, providing greater reinvestment flexibility. Initial results from its second well, Cascadura-1, are expected in a couple of weeks. We are maintaining our Buy rating and raise our price target to 39p.