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Touchstone Exploration Inc confirms Q3 boost on production growth and improved prices

High cash flows are helping support investment programmes, meanwhile, first production from the Coho discovery is drawing nearer

Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) said production volumes in the third quarter was 1,333 barrels per day, up 2% year-on-year.

The Trinidad based small-cap oil producer reported some US$7.65mln of realised petroleum sales in the three months ended September 30, and noted an average crude price of $62.37 per barrel which set an operating netback of $27.77 per barrel (Touchstone’s highest since early 2019).

With the net back up some 97% versus the same quarter last year, the company said it generated US$1.07mln of ‘funds flow from operations’ compared to US$192,000 a year ago. Net losses narrowed to US$51,000 from US$703,000 in Q3 2020, amidst continuing investment in growth projects.

“Our third-quarter results reflect the focused work the team has done on maintaining base production with minimal expense while executing a safe capital program at Ortoire,” said chief executive Paul Baay.

“The higher reported operating netbacks have resulted in strong cash flow for the quarter which help fund our ongoing capital program while we move closer to first production from Coho, which is forecasted to effect a step change in our financial performance.”

At Coho, one of the new Ortoire block discoveries, it is expected that a pipeline will be commissioned in the first quarter of 2022, meanwhile the construction of natural gas facilities are said to be making progress.

A fresh development drilling programme is underway after the programme kicked off in early October.

Touchstone said it ended September with just over US$5mln of cash and had US$7.5mln drawn on a credit facility.

Read More: Touchstone Exploration Inc confirms Q3 boost on production growth and improved prices

2021-11-11 03:16:00

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