Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) is anticipating a major uptick in production in the new year as its newly opened Cascadura project continues to deliver.
Production will likely come in between 9,100 and 9,700 barrels of oil equivalent per day (boepd) over 2024, Touchstone announced on Tuesday, of which most will be natural gas.
This would be compared to the company’s average of 2,457 boepd over the first nine months of 2023.
Cascadura came online in mid-September and has fuelled an increase in production already, with 7,234 and 6,623 boepd coming from the site in October and November respectively.
In total, Touchstone averaged 8,268 boepd in November, the company added in Tuesday’s update.
Increased production should see Touchstone generate around US$32 million in 2024, the company forecast, leaving net debt at US$25 million come the year end, compared to US$30 million in September.
Touchstone will invest US$33 million over next year meanwhile, with the majority going on development wells at the Cascadura field, the CO-1 block and at its Coho assets.
Under this, Touchstone plans to build five new development wells in total between each, alongside an exploration well at Coho.
“We will remain disciplined when deploying our 2024 capital and increasing our credit capacity, adhering to our long-term net debt and liquidity targets,” chief executive Paul Baay said.
“This approach will allow us to fund future exploration drilling from cash flows [...] and maximisation of our existing financing facilities.”