07:00 Tue 14 Nov 2017
Touchstone Explrtn. - THIRD QUARTER 2017 FINANCIAL RESULTS
TOUCHSTONE ANNOUNCES THIRD QUARTER 2017 FINANCIAL RESULTS
2017 Third Quarter Highlights
· Generated quarterly funds flow from operations of
· Realized an operating netback of
· Achieved quarterly average crude oil sales of 1,437 barrels per day ("bbls/d"), representing increases of 8% from the second quarter of 2017 and 13% from the prior year comparative period.
· Successfully drilled one well and recompleted three wells.
· Subsequent to quarter-end, the Company secured bonding to support its cash collateralized
· The Company's Board of Directors approved the drilling of four additional wells on its Coora 2 and WD-8 properties; Touchstone expects to commence operations in
2017 Third Quarter and Year-to-Date Financial and Operating Results Summary
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Three months ended |
Nine months ended |
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2017 |
2016 |
2017 |
2016 |
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Operating |
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Average daily oil production (bbls/d) |
1,437 |
1,276 |
1,351 |
1,319 |
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Operating netback1 ($/bbl) |
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Brent benchmark price |
65.28 |
59.75 |
67.61 |
55.07 |
Discount |
(5.64) |
(7.19) |
(6.03) |
(8.18) |
Realized sales price |
59.64 |
52.56 |
61.58 |
46.89 |
Royalties |
(16.41) |
(13.89) |
(18.93) |
(12.98) |
Operating expenses |
(18.77) |
(19.65) |
(19.95) |
(21.48) |
Operating netback prior to derivatives |
24.46 |
19.02 |
22.70 |
12.43 |
Realized gain on derivatives |
- |
- |
- |
17.87 |
Operating netback after derivatives |
24.46 |
19.02 |
22.70 |
30.30 |
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Financial ( |
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Funds flow from operations |
1,387 |
1,567 |
2,218 |
5,764 |
Per share - basic and diluted1 |
0.01 |
0.02 |
0.02 |
0.07 |
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Net loss |
(1,203) |
(702) |
(4,600) |
(5,699) |
Per share - basic and diluted |
(0.01) |
(0.01) |
(0.05) |
(0.07) |
1Refer to advisory regarding non-GAAP measures. |
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Capital expenditures |
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Exploration |
202 |
847 |
910 |
1,476 |
Property and equipment |
1,889 |
327 |
7,375 |
1,033 |
Total |
2,091 |
1,174 |
8,285 |
2,509 |
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Total assets - end of period |
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80,137 |
72,550 |
Net debt1 - end of period |
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14,598 |
4,135 |
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Weighted average shares outstanding |
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Basic and diluted |
103,137,143 |
83,137,143 |
90,243,370 |
83,116,705 |
Outstanding shares - end of period |
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103,137,143 |
83,137,143 |
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1Refer to advisory regarding non-GAAP measures.
Touchstone drilled and completed the fourth and final well of its initial 2017 drilling program in the third quarter of 2017. Two of the wells were on production for the duration of the quarter, while the remaining two wells commenced production during the quarter. The four wells contributed a combined field estimated 273 bbls/d of incremental production. Touchstone's workover program continued in the quarter with three well recompletions; the Company performed 13 well recompletions in the calendar year of 2017. The Company invested
Realized third quarter 2017 pricing for crude oil was
Funds flow from operations for the three months ended
Touchstone exited the quarter with a working capital surplus of
The Company must continue to maintain a minimum cash reserves balance of
In the third quarter, Touchstone traded a total of 22,797,299 common shares, 76% of which were traded on the AIM exchange. Subsequent to
"I am very pleased with the results of the 2017 drilling program, with the four wells drilled thus far exceeding our expectations. We are excited to take the proven geological concept to our Coora 2 and WD-8 properties. These wells will also satisfy our 2016 and 2017 work commitments. With the further increase in operating netback achieved during this quarter, we are in position to continue to strengthen and grow our business."
For further information, please contact:
Mr.
Mr.
Mr.
Shore Capital (Nominated Advisor and Joint Broker)
Nominated Adviser:
Corporate Broking:
GMP FirstEnergy (Joint Broker)
Camarco (Financial PR)
Nick Hennis / Jane Glover / Billy Clegg Tel: +44 (0) 203 757 4980
About Touchstone
Advisories
Non-GAAP Measures: This announcement contains terms commonly used in the oil and natural gas industry, such as funds flow from operations per share, operating netback and net debt. These terms do not have a standardized meaning under International Financial Reporting Standards and may not be comparable to similar measures presented by other companies. The Company calculates funds flow from operations per share by dividing funds flow from operations by the weighted average number of common shares outstanding during the applicable period. Operating netback is presented on a per barrel basis and is calculated by deducting royalties and operating expenses from petroleum revenue. The Company discloses operating netback both prior to realized gains or losses on derivatives and after the impacts of derivatives are included. Realized gains or losses represent the portion of risk management contracts that have settled in cash during the period, and disclosing this impact provides Management and investors with transparent measures that reflect how the Company's risk management program can impact netback metrics. The Company uses operating netback as a key performance indicator of field results, and considers it to be a key measure as it demonstrates Touchstone's profitability relative to current commodity prices. Net debt is calculated by summing the Company's working capital and non-current undiscounted interest bearing liabilities. Working capital is defined as current assets less current liabilities as they appear on the statements of financial position. The Company uses this information to assess its true debt and liquidity position and to manage capital and liquidity risk. Management uses these non-GAAP measures for its own performance measurement and to provide stakeholders with measures to compare the Company's operations over time.
Forward-Looking Statements: Certain information provided in this announcement may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking information in this announcement may include, but is not limited to, statements regarding the Company's future recompletion and drilling plans, including the anticipated timing thereof. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's Annual Information Form dated
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