Touchstone Exploration, a Trinidad-focused energy company, announced its financial outcomes for the first quarter of 2024, which note a 20% decrease in sales from oil and natural gas compared to the last quarter of 2023.
In the latest quarterly financial report, Touchstone recorded sales totaling US$16.584 million. This marks a decrease from US$20.759 million in the previous quarter.
Correspondingly, Touchstone reported average quarterly production of 7,015 barrels of oil equivalent per day (boe/d), constituted 80% by natural gas. This represents an 18% decrease from the 8,504 boe/d production in the fourth quarter of 2023 (79% natural gas).
- Cascadura field production volumes in the quarter contributed US$6.961 million of net natural gas sales at an average realized price of $2.49 per thousand cubic feet and US$1.657 million of net natural gas liquids (NGL) sales at an average realized price of $69.59 per barrel.
- Natural gas production from the Coho-1 well averaged net volumes of 2.8 million cubic feet per day (460 boe/d) in the quarter and contributed $542,000 of net natural gas sales at an average realized price of $2.16 per thousand cubic feet.
- Crude oil production from our legacy fields contributed $7.424 million of net sales at an average realized price of $69.95.
Paul Baay, President and Chief Executive Officer, commented: “Since coming onstream in September 2023, the Cascadura field has transformed Touchstone both operationally and financially, having contributed an estimated $20 million in operating netbacks, ahead of tying in the two further successfully drilled development wells from the surface location. Initial decline rates on our two producing Cascadura wells have been steeper than we first expected but we are learning more about the reservoir for further exploitation. We are maintaining our full-year guidance given production increases are heavily weighted towards the fourth quarter of 2024.”
Baay said Touchstone is thrilled about its recent agreement on May 1, 2024, with Trinity Exploration and Production Plc for an all-share acquisition deal. This move is expected to bolster Touchstone’s market position by combining resources and capabilities with Trinity, leading to increased production volumes and more robust capital flexibility.
Touchstone continues to invest in its growth, with US$11.962 million spent on development activities, including new wells at Cascadura and ongoing infrastructure projects.
The company exited the first quarter with a cash balance of US$9.537 million and a net debt position of US$27.621 million, resulting in a reduced net debt to annual funds flow from operations ratio of 1.45 times.
