Touchstone Exploration Inc. has reported a decline in production and revenue for the first quarter of 2025.
Touchstone said its average production fell to 4,317 barrels of oil equivalent per day (boe/d), down from 5,287 boe/d in the previous quarter. This was a significant drop from the 7,015 boe/d recorded in Q1 2024.
The decline was mainly due to natural declines from the Cascadura-1ST1 and Cascadura Deep-1 wells. New volumes from Cascadura-2ST1 and Cascadura-3ST1, which came online in November 2024, only partially offset the loss.
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Petroleum and natural gas sales totaled US$11.11 million, down 18% from US$13.54 million in Q4 2024. Crude oil sales brought in US$6.68 million from 1,162 barrels per day (b/d) at US$63.86 per barrel.
Natural gas liquids sales totaled US$0.22 million from 39 b/d at US$64.05 per barrel.
Touchstone reported that its natural gas sales generated US$4.21 million from 18.7 million cubic feet per day (MMcf/d) at US$2.50 per Mcf.
Operating netback came in at US$6.15 million, down 11% from the prior quarter. The drop in netback was due to lower sales and related royalties, partly offset by a 38% cut in operating costs, Touchstone reported.
The company reduced historical crude oil field head licence expenses to help manage costs. Funds flow from operations declined to US$2.58 million, from US$3.61 million in Q4.
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The decrease reflects lower netbacks and higher general and administrative expenses. These were partially offset by reduced transaction and tax costs.
Q4 2024 results were affected by a US$2.31 million impairment on Ortoire exploration assets and increased depletion charges. Touchstone invested US$6.67 million during the quarter, mostly on the Cascadura-4 development well.
Drilling was suspended in February for rig repairs, briefly resumed in March, and stopped again due to wellbore instability. Operations are expected to continue by the end of May with the arrival of specialized equipment.
The company ended the quarter with US$5.72 million in cash and net debt of US$33.33 million.
