Results from Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) started to reflect the transformative impact of the Cascadura field start-up for the company.
The central Trinidad field came online in the latter months of 2023 and has boosted production averages for the twelve month period and lifted revenue, albeit future financial statements will show the full positive impact that Cascadura has delivered.
Production for the fourth quarter was up 151% thanks to the new field, with the group’s average measured at 8,504 barrels of oil equivalent per day, which drove quarterly sales higher to $20.75 million. The company reported an operating ‘netback’ of $13.73 million, supporting a new company record for quarterly funds flow, amounting to $10.48 million.
For the whole of 2023, sales amounted to $48.09 million, with the year’s daily average production rate marked at 3,981 boepd. The netback was $26.22 million, whilst it reported a positive funds flow of $13.73 million for the year.
At year end, net debt had reduced significantly to $22.58 million and the company had $8.18 million of cash.
Meanwhile, in the outlook statement accompanying the results, Touchstone meanwhile highlighted that this year’s capital investment programme is also now underway – comprising the drilling of additional production-boosting wells at Cascadura as well as at the CO field, along with works to enhance production facilities and infrastructure to a new natural gas facility.
Most of the financial benefits are anticipated in the latter part of this year.
“Since year-end we have made substantial progress on our 2024 capital program, with one well successfully drilled and cased, and two further wells currently drilling,” chief executive Paul Baay said in a statement.
“We continue to expect to bring the additional Cascadura wells on stream late in the third quarter of 2024 once the tie-in pipeline to our production facilities is completed.
“We are confident that 2024 will be another period of significant operational development and we look forward to updating our stakeholders on our progress."