Touchstone Exploration has seen significant progress in the third quarter of 2024, with an average quarterly production of 5,211 barrels of oil equivalent per day (boe/d), a 54% increase from the same period last year. This growth was largely driven by a full quarter of production from the Cascadura field, despite natural declines in gas and associated liquids.
Revenue from petroleum and natural gas sales reached US$13.25 million, an increase from US$11.68 million in Q3 2023. This improvement was largely due to a sharp 93% rise in natural gas production volumes, though slightly tempered by lower crude oil and liquids prices. Sales from crude oil contributed US$7.60 million, with an average price of US$66.72 per barrel, while the Cascadura field added US$4.91 million from natural gas at an average price of US$2.50 per thousand cubic feet. Additional contributions included US$436,000 from the Coho-1 well.
Operating netback for the quarter was US$7.41 million, a 23% increase compared to the previous year, attributed to higher sales and a slight reduction in operating expenses. Funds flow from operations also rose to US$3.02 million, although transaction costs of US$722,000 offset some of the gains. Net earnings for the period amounted to US$1.85 million (US$0.01 per share), a notable improvement from the previous year.
Capital investments for the quarter totalled US$3.07 million, primarily focused on developing the Cascadura field and constructing infrastructure to support production. By the end of the quarter, the company had a cash balance of US$6.55 million and net debt of US$29.59 million, with a favourable net debt-to-funds-flow ratio of 1.25 times. Touchstone also expanded its Trinidad onshore assets by securing exploration and production licenses for the Charuma and Cipero Blocks.
In October 2024, production volumes averaged 3,993 boe/d, impacted by declines at the Cascadura-1ST1 and Cascadura-2ST1 wells, as well as a four-day shut-in for flowline tie-ins. Despite these challenges, the company continued to make advancements, commissioning a new flowline to connect the Cascadura wells to the processing plant and starting production testing. Additionally, in November, production testing at Cascadura-2ST1 reached 20 million cubic feet per day of natural gas, with further tests at Cascadura-3ST1 indicating a gross oil production rate of 600 to 700 barrels per day.
Touchstone Exploration’s strong performance in Q3 2024 reflects a successful expansion of its operations and strategic investments, positioning the company for continued growth in the coming quarters.
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.
