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Touchstone Exploration transformed as Cascadura ramp up continues

Last updated: 04:05 21 Mar 2024 EDT, First published: 04:40 18 Dec 2020 EST

Snapshot

  • Touchstone Exploration sees beginnings of Cascadura boost as it reports financials
  • Touchstone Exploration’s term sheet ‘a very encouraging development’ - analyst
  • Touchstone Exploration discusses transformational 2023 and the road ahead
Touchstone

About the company

Touchstone Exploration Inc is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas.

The company is currently active in onshore properties located in the Republic of Trinidad and Tobago. 

How it is doing

21 Mar 2024

Results from Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) started to reflect the transformative impact of the Cascadura field start-up for the company.

The central Trinidad field came online in the latter months of 2023 and has boosted production averages for the twelve month period and lifted revenue, albeit future financial statements will show the full positive impact that Cascadura has delivered.

Production for the fourth quarter was up 151% thanks to the new field, with the group’s average measured at 8,504 barrels of oil equivalent per day, which drove quarterly sales higher to $20.75 million. The company reported an operating ‘netback’ of $13.73 million, supporting a new company record for quarterly funds flow, amounting to $10.48 million.

For the whole of 2023, sales amounted to $48.09 million, with the year’s daily average production rate marked at 3,981 boepd. The netback was $26.22 million, whilst it reported a positive funds flow of $13.73 million for the year.

04 Mar 2024

Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has significantly expanded its borrowing as it kicks off the next phase of well drilling at the productive Cascadura field in Trinidad.

The company, in a statement, told investors that it has increased its borrowing capacity by some $13 million – with a new $10 million five-year bank loan and a $3 million increase in its revolving credit facility, which increases from $7 million to $10 million.

01 Mar 2024

Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has published its annual year-end reserves report for 2023, with the firm’s PDP reserves increasing 180% from the end of 2022 to 13.5 million barrels oil equivalent.

Reflecting the delivery of the Cascadura field into production, the firm’s PDP reserves replaced 2023 annual production by 699%.

What the brokers say

05 Mar 2024

Shore Capital Markets analysts labelled Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF)’s expanded debt facility with an existing Trinidad-based lender “a very encouraging development”.

Touchstone confirmed a binding term sheet with the lender to provide a US$13m increase in debt capacity as it kicks off the next phase of well drilling at the productive Cascadura field in Trinidad.

“Our last detailed note highlighted this as a key near-term catalyst for investors to look forward to, with our 2024 cash flow forecasts indicating more than adequate headroom if debt facilities were increased as hoped,” wrote house broker Shore Cap.

What management says

21 Mar 2024

Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) CEO Paul Baay describes 2023 as a transformational year for the company, emphasizing the significant growth and operational advancements achieved.

In an interview with Proactive's Stephen Gunnion, Baay said key 2023 achievements included the completion of facilities and commissioning of production, and the initiation of the 2024 drilling program. The company also secured new bank financing with a Trinidad bank, enhancing its capitalisation for future projects. Operational focuses such as driving down costs and optimising production were highlighted as contributing factors to the company's different outlook at the end of 2023.

The fourth quarter saw remarkable growth with a 150% increase in production, averaging 8,500 barrels of oil equivalent per day (BOE/D), thanks to full quarter production from the Coho and Cascadura fields. This resulted in a $10 million cash flow, suggesting a positive financial trajectory.

Touchstone Exploration discusses transformational 2023 and the road ahead

Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) CEO Paul Baay describes 2023 as a transformational year for the company, emphasizing the significant growth and operational advancements achieved. In an interview with Proactive's Stephen Gunnion, Baay said key 2023 achievements...

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