Touchstone Exploration Inc (LON:TXP) disclosed its financial and operational results for the first quarter ending March 31, 2024, and provided an operational update.
Key Highlights:
Production and Financials: The company achieved an average quarterly production of 7,015 boe/d, marking a 228% increase from the same period in 2023, primarily driven by the Cascadura field. Touchstone Exploration reported $16.6 million in petroleum and natural gas sales, with an operating netback of $10.5 million, and net earnings of $3.6 million.
Operational Activities: The company focused on drilling operations, successfully drilling and casing wells, including the CO-375 development well. Additionally, significant progress was made in infrastructure development to connect new wells to the Cascadura natural gas facility.
Strategic Developments: An agreement for an all-share acquisition of Trinity Exploration and Production Plc was reached, aimed at providing increased scale and flexibility for future capital programs.
Financial Position: The company exited the quarter with a cash balance of $9.5 million and a net debt of $27.6 million, reducing the net debt to annual funds flow from operations ratio to 1.45 times.
Management Update: Brian Hollingshead was promoted to Executive Vice President, Engineering and Business Development, while James Shipka’s title was updated to Executive Vice President, Asset Development and HSE.
Outlook: The 2024 capital program is progressing with expected production increases in the fourth quarter, pending infrastructure completion. Touchstone Exploration is also exploring a potential stimulation program for the Cascadura field to optimise recovery rates.
The next Annual Meeting of Shareholders is scheduled for June 19, 2024, and management remains optimistic about the company’s future growth and operational efficiency.
