Touchstone Exploration (LON:TXP) continues to showcase its resilience and growth potential as it navigates the challenges of the oil and gas sector. A recent research note from Canaccord Genuity reaffirms a Speculative Buy rating for the company, highlighting significant upside potential despite a revised target price of 60p, down from 90p. This updated price still represents an impressive 110% upside compared to the company’s last closing price.
Strong Growth and a Refined Strategy
Touchstone Exploration has adjusted its production forecasts for FY24 and FY25, reflecting prudent updates on well performance. The Cascadura wells, key contributors to the company’s output, exhibited higher-than-expected decline rates. Consequently, FY25 production is now projected in the range of 6,700-7,300 barrels of oil equivalent per day (boepd), with a robust 77% contribution from natural gas.
Speaking about the company’s prospects, Phil Hallam of Canaccord Genuity noted, “We still see considerable value in Touchstone, with our new target price representing a c. 110% upside to Friday’s close. However, the lower-than-anticipated production from the Cascadura wells has left more work for Touchstone to do to prove the value of its onshore production assets in Trinidad.”
