Touchstone Exploration Inc's (AIM:TXP, TSX:TXP, OTC:PBEGF) third-quarter results confirm the huge impact that the hotly anticipated Cascadura project is delivering.
Cascadura contributed some 7,234 barrels oil equivalent per day (boepd) in the month of October, after it came online in mid-September, today’s update has revealed.
For context, at 3,391 boepd the third quarter’s average production itself marked a 167% increase on last year’s total.
Group sales for the month of October – the first full month with Cascadura contributing – amounted to 8,917 boepd, with the new field providing 7,234 boepd.
“The positive impact that initial output from our Cascadura field has had on both our production profile, and more importantly, our operating cash flows is clear,” said chief executive Paul Baay.
“The results from the first few weeks of production at Cascadura demonstrate that we can look forward to materially enhanced operational and financial results.”
On site at Cascadura, meanwhile, production remains restricted whilst final facility commissioning is undertaken, and volumes are expected to increase further once certain equipment is fully operational.
Preparations are at the same time underway for new development drilling at Cascadura and Coho fields.
A workover operation is also presently slated for the Coho-1 well later this month.
Baay added: “While we are encouraged with our initial output levels, we are focused on optimizing production across our portfolio including Cascadura, Coho and our legacy oil properties.
“These operations are anticipated to be completed by the end of the year and will provide Touchstone with a strong platform upon which to continue our growth in 2024.
“Along with our significant production gains, we continue to work to expand our land footprint and look forward to commencing our development drilling program on both the Ortoire block and our legacy acreage."
Financial results
Touchstone reported US$11.68 million of realized petroleum and natural gas sales, up from US$9.3 million in the same period last year. Cascadura volumes generated US$1.87 million of those sales.
It reported some US$2.43 million of fund flow from operations, up from US$6,000 in the preceding period and US$256,000 year on year. Net earnings were reported at US$988,000 and the company said there was a stated comprehensive income of US$809,000.
Touchstone exited the quarter with US$3.79 million of cash and US$29.9 million of net debt.