Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has published its annual year-end reserves report for 2023, with the firm’s PDP reserves increasing 180% from the end of 2022 to 13.5 million barrels oil equivalent.
Reflecting the delivery of the Cascadura field into production, the firm’s PDP reserves replaced 2023 annual production by 699%.
With Cascadura coming online the field now represents some 40% of Touchstone’s proven (1P) reserves, which the company says reflects ‘an attractive ratio of base production to low risk proved undeveloped (PUD) drilling targets’.
Meanwhile, gross reserve numbers were reduced due to the removal of PUD targets related to non-core and legacy assets such as Royston.
Touchstone said its PDP reserves were valued pre-tax at $151.4 million (net present value), up 142%.and the after NPV calculation comes out at $99.8 million representing a 93% improvement on the prior year.
The company noted that the year-end report included Cascadura-1ST1 and Cascadura Deep-1 as ‘online’ wells and that Cascadura-2 well was drilled subsequent to the effective date and will now be added in future reserves calculations.
It also noted the produced volumes from Cascadura which amounted to 37.4 million cubic feet per day of natural gas and 622 barrels per day of natural gas liquids in the fourth quarter of 2023, contributing significantly to the group’s increased production rate of 8,504 barrels oil equivalent per day in the quarter.
For context, the net rate for the whole year averaged 3,981 boepd.