Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF)’s third-quarter results and operational update provided “early evidence of the transformational potential of the Cascadura field”, Cavendish analysts said in a research note published on Wednesday.
Though Cascadura only came on stream late in the quarter and commissioning activity is still being finalised, it still drove record quarterly volumes and higher revenue, netbacks and cash flow, noted analysts.
Adding to a buoyant outlook for the AIM-listed company, Cavendish stated that “in October, despite being choked back, Cascadura production alone was more than double Touchstone’s third-quarter total output, with more still to come from facility optimisation and additional development drilling".
Cavendish analysts left their full-year estimates unchanged, with slightly lower production offset by higher NGL (natural gas liquid) realisations and oil prices.
Their 87p price target suggests a 57% upside to Touchstone’s 55.5p publication price.