Touchstone Exploration Inc, a Calgary-based oil and gas exploration company, demonstrated strong financial performance in the second quarter of the year, driven by increased production. Comprehensive income surged to $3.5 million in the quarter ending June 30, compared to $136,000 in the same period the previous year. Revenue also saw a substantial increase of 96%, rising to $14.1 million from $7.2 million, while operating expenses grew by 33%, reaching $7.1 million from $5.3 million.
The company’s daily production figures experienced notable growth, nearly tripling to 5,432 barrels of oil equivalent per day from 1,827 barrels per day. Despite this progress, Touchstone’s cash balance decreased by 31% to $7.0 million, down from $10.1 million, while net debt saw a modest reduction of 0.8%, falling to $28.7 million from $28.9 million.
Touchstone’s CEO, Paul Baay, highlighted the company’s productive second quarter, focusing on optimising production, enhancing processing capabilities, and connecting new wells to the Cascadura natural gas facility. Following a busy drilling programme during the first half of the year, Touchstone expects to initiate production from two Cascadura wells by the end of September.
However, the company revised its guidance for the year due to unexpected production declines in the Cascadura field. The average daily production forecast for 2024 has been adjusted to a range of 7,700 to 8,300 barrels of oil equivalent per day, down from the previously anticipated range of 9,100 to 9,700 boe/d.
After the reporting period, Touchstone secured exploration and production licences for the Charuma and Cipero onshore blocks, where it holds an 80% operating interest. Despite lowering its production targets, the company remains committed to expanding its operations and maintaining a strong presence in its key markets.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
